Independent Franchise Partners LLP Decreases Stock Holdings in Electronic Arts Inc. $EA

Key Points

• Independent Franchise Partners cut its stake in Electronic Arts by 20% in Q3 to 2,733,751 shares (about 1.10% of EA), valued at roughly $551.4 million and making EA its 15th-largest holding.
• Insider selling accelerated: CEO Andrew Wilson sold 5,000 shares at $199.50 on Feb. 17 (≈$997,500), insiders have sold 27,600 shares (~$5.59M) over the past three months, and insiders now own 0.24% of the company.
• Analyst and valuation snapshot: Consensus is a "Hold" with an average target of $188.30; EA has a market cap of about $49.9 billion, a P/E of 74.9, and recently declared a $0.19 quarterly dividend (0.4% yield).

Independent Franchise Partners LLP reduced its stake in shares of Electronic Arts Inc. (NASDAQ:EA - Free Report) by 20.0% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 2,733,751 shares of the game software company's stock after selling 681,378 shares during the quarter. Electronic Arts accounts for approximately 3.6% of Independent Franchise Partners LLP's portfolio, making the stock its 15th largest holding. Independent Franchise Partners LLP owned 1.10% of Electronic Arts worth $551,398,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. NorthRock Partners LLC purchased a new stake in shares of Electronic Arts during the 3rd quarter worth approximately $403,000. Harvest Fund Management Co. Ltd increased its stake in Electronic Arts by 8.3% in the 3rd quarter. Harvest Fund Management Co. Ltd now owns 15,419 shares of the game software company's stock valued at $3,111,000 after purchasing an additional 1,181 shares in the last quarter. Prudential PLC raised its holdings in Electronic Arts by 17.3% during the third quarter. Prudential PLC now owns 29,724 shares of the game software company's stock worth $5,995,000 after purchasing an additional 4,376 shares during the last quarter. Quinn Opportunity Partners LLC acquired a new position in Electronic Arts during the third quarter worth $156,760,000. Finally, Brown Brothers Harriman & Co. boosted its position in Electronic Arts by 47.7% during the third quarter. Brown Brothers Harriman & Co. now owns 1,786 shares of the game software company's stock worth $360,000 after purchasing an additional 577 shares in the last quarter. 90.23% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several analysts have weighed in on EA shares. Citigroup lowered their target price on Electronic Arts from $207.00 to $202.00 and set a "neutral" rating on the stock in a report on Wednesday, February 4th. UBS Group reaffirmed a "neutral" rating on shares of Electronic Arts in a research note on Wednesday, February 4th. Finally, Zacks Research lowered shares of Electronic Arts from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, November 19th. Three analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $188.30.

Insider Buying and Selling

In related news, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $199.50, for a total transaction of $997,500.00. Following the sale, the chief executive officer owned 33,858 shares of the company's stock, valued at $6,754,671. This trade represents a 12.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Vijayanthimala Singh sold 1,200 shares of Electronic Arts stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $200.63, for a total value of $240,756.00. Following the sale, the insider owned 31,160 shares of the company's stock, valued at approximately $6,251,630.80. This represents a 3.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 27,600 shares of company stock valued at $5,589,823 over the last three months. Insiders own 0.24% of the company's stock.

Electronic Arts Price Performance

EA stock opened at $199.24 on Friday. The stock's 50 day moving average price is $201.93 and its 200 day moving average price is $196.92. The firm has a market cap of $49.86 billion, a P/E ratio of 74.90, a PEG ratio of 2.37 and a beta of 0.75. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.93 and a current ratio of 0.93. Electronic Arts Inc. has a 1 year low of $131.15 and a 1 year high of $204.88.

Electronic Arts Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 18th. Stockholders of record on Wednesday, February 25th will be 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 of this dividend is Wednesday, February 25th. Electronic Arts's payout ratio is 28.57%.

Electronic Arts Company Profile

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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