Goldman Sachs Group Inc. Increases Stock Holdings in Electronic Arts Inc. (NASDAQ:EA)

Key Points

• Goldman Sachs has increased its stake in Electronic Arts Inc. by 62.7%, now owning over 3.25 million shares valued at approximately $470 million.
• Several other institutional investors have also increased their holdings, with 90.23% of the stock now owned by hedge funds and institutional investors.
• Analyst ratings for Electronic Arts are mixed, with the company receiving a consensus rating of "Moderate Buy" and several target price adjustments, including a recent upgrade to $192.00 by Arete.

Goldman Sachs Group Inc. raised its position in Electronic Arts Inc. (NASDAQ:EA - Free Report) by 62.7% during the first quarter, according to its most recent filing with the SEC. The firm owned 3,253,505 shares of the game software company's stock after purchasing an additional 1,254,194 shares during the period. Goldman Sachs Group Inc. owned 1.25% of Electronic Arts worth $470,197,000 as of its most recent filing with the SEC.

Several other hedge funds also recently modified their holdings of the stock. Putney Financial Group LLC bought a new position in Electronic Arts during the fourth quarter worth $26,000. Opal Wealth Advisors LLC bought a new position in Electronic Arts during the first quarter worth $28,000. Bank of Jackson Hole Trust boosted its stake in Electronic Arts by 56.4% during the first quarter. Bank of Jackson Hole Trust now owns 208 shares of the game software company's stock worth $30,000 after acquiring an additional 75 shares in the last quarter. LGT Financial Advisors LLC bought a new position in Electronic Arts during the fourth quarter worth $33,000. Finally, Wayfinding Financial LLC bought a new position in Electronic Arts during the first quarter worth $39,000. Institutional investors own 90.23% of the company's stock.

Insider Buying and Selling at Electronic Arts

In other Electronic Arts news, insider Laura Miele sold 2,500 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $155.49, for a total transaction of $388,725.00. Following the sale, the insider directly owned 58,092 shares of the company's stock, valued at $9,032,725.08. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Vijayanthimala Singh sold 1,000 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $159.53, for a total transaction of $159,530.00. Following the sale, the insider directly owned 37,131 shares in the company, valued at approximately $5,923,508.43. This trade represents a 2.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 30,729 shares of company stock valued at $4,677,124. Insiders own 0.24% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on EA. UBS Group set a $167.00 price objective on shares of Electronic Arts and gave the stock a "neutral" rating in a report on Friday, August 1st. JPMorgan Chase & Co. raised their price objective on shares of Electronic Arts from $135.00 to $160.00 and gave the company a "neutral" rating in a research note on Wednesday, May 7th. The Goldman Sachs Group raised their price objective on shares of Electronic Arts from $135.00 to $155.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Bank of America raised their price objective on shares of Electronic Arts from $166.00 to $168.00 and gave the company a "neutral" rating in a research note on Wednesday, July 30th. Finally, TD Cowen raised their price objective on shares of Electronic Arts from $160.00 to $172.00 and gave the company a "buy" rating in a research note on Wednesday, May 7th. Sixteen equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $166.35.

Electronic Arts Stock Performance

Shares of NASDAQ:EA traded up $4.89 during midday trading on Friday, reaching $167.64. The company had a trading volume of 4,590,507 shares, compared to its average volume of 2,910,201. The company's 50 day moving average price is $153.17 and its 200 day moving average price is $143.97. The company has a current ratio of 0.84, a quick ratio of 0.95 and a debt-to-equity ratio of 0.24. The stock has a market cap of $41.95 billion, a P/E ratio of 42.02, a P/E/G ratio of 2.16 and a beta of 0.72. Electronic Arts Inc. has a 52-week low of $115.21 and a 52-week high of $168.50.

Electronic Arts Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Wednesday, August 27th will be issued a dividend of $0.19 per share. The ex-dividend date of this dividend is Wednesday, August 27th. This represents a $0.76 annualized dividend and a yield of 0.5%. Electronic Arts's dividend payout ratio is 19.05%.

About Electronic Arts

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.