Hsbc Holdings PLC Has $99.70 Million Stake in Electronic Arts Inc. $EA

Key Points

• Hsbc Holdings PLC cut its Electronic Arts stake by 52.5% in the fourth quarter, but still held 487,943 shares worth about $99.7 million as of its latest filing.
• Electronic Arts shares were trading near $202.15, close to their 52-week high, with the company carrying a market cap of about $50.7 billion and a dividend yield of roughly 0.4%.
• Several analysts remain cautious on EA: the stock’s consensus rating is Hold, with an average price target of $196.64, while recent insider sales included CEO Andrew Wilson and EVP Jacob J. Schatz.

Hsbc Holdings PLC reduced its position in Electronic Arts Inc. (NASDAQ:EA - Free Report) by 52.5% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 487,943 shares of the game software company's stock after selling 539,768 shares during the quarter. Hsbc Holdings PLC owned approximately 0.19% of Electronic Arts worth $99,704,000 as of its most recent filing with the SEC.

A number of other hedge funds have also bought and sold shares of EA. EverSource Wealth Advisors LLC boosted its position in Electronic Arts by 2.4% during the third quarter. EverSource Wealth Advisors LLC now owns 2,108 shares of the game software company's stock valued at $425,000 after acquiring an additional 50 shares during the last quarter. Salomon & Ludwin LLC raised its position in shares of Electronic Arts by 32.8% in the 4th quarter. Salomon & Ludwin LLC now owns 231 shares of the game software company's stock worth $47,000 after acquiring an additional 57 shares in the last quarter. Macroview Investment Management LLC lifted its stake in shares of Electronic Arts by 6.2% in the 4th quarter. Macroview Investment Management LLC now owns 1,065 shares of the game software company's stock valued at $218,000 after purchasing an additional 62 shares during the period. Meiji Yasuda Asset Management Co Ltd. lifted its stake in shares of Electronic Arts by 2.8% in the 3rd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,510 shares of the game software company's stock valued at $506,000 after purchasing an additional 68 shares during the period. Finally, 44 Wealth Management LLC boosted its position in shares of Electronic Arts by 0.9% during the 3rd quarter. 44 Wealth Management LLC now owns 7,555 shares of the game software company's stock valued at $1,524,000 after purchasing an additional 68 shares in the last quarter. Institutional investors own 90.23% of the company's stock.

Electronic Arts Price Performance

Shares of NASDAQ EA opened at $202.15 on Monday. Electronic Arts Inc. has a fifty-two week low of $146.97 and a fifty-two week high of $204.88. The stock has a market cap of $50.69 billion, a price-to-earnings ratio of 57.92, a PEG ratio of 2.27 and a beta of 0.65. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.05 and a current ratio of 1.05. The firm's 50-day simple moving average is $202.12 and its 200 day simple moving average is $202.39.

Electronic Arts Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Wednesday, May 27th were issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Wednesday, May 27th. Electronic Arts's dividend payout ratio (DPR) is currently 21.78%.

Insider Buying and Selling

In related news, CEO Andrew Wilson sold 5,066 shares of Electronic Arts stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.66, for a total transaction of $1,021,609.56. Following the transaction, the chief executive officer owned 85,974 shares of the company's stock, valued at $17,337,516.84. The trade was a 5.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Jacob J. Schatz sold 5,000 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $201.19, for a total value of $1,005,950.00. Following the sale, the executive vice president owned 42,287 shares of the company's stock, valued at $8,507,721.53. This trade represents a 10.57% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 39,906 shares of company stock worth $8,060,033 over the last three months. Company insiders own 0.24% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Citigroup raised their target price on Electronic Arts from $202.00 to $204.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Wall Street Zen upgraded Electronic Arts to a "hold" rating in a report on Saturday, June 6th. Argus downgraded shares of Electronic Arts from a "buy" rating to a "hold" rating in a research report on Thursday, May 28th. Finally, Weiss Ratings upgraded shares of Electronic Arts from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 18th. Two investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Electronic Arts has an average rating of "Hold" and an average price target of $196.64.

About Electronic Arts

Electronic Arts Inc NASDAQ: EA is a global interactive entertainment company headquartered in Redwood City, California. Founded in 1982 by Trip Hawkins, EA develops, publishes and distributes video games and related content for a variety of platforms, including consoles, personal computers and mobile devices. The company combines in-house development, partnerships and studio acquisitions to create and maintain a portfolio of entertainment properties and live-service experiences for players worldwide.

EA's product lineup spans several well-known franchises and genres.

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