Electronic Arts Inc. (NASDAQ:EA) Shares Sold by Primecap Management Co. CA

Key Points

• Primecap Management Co. CA reduced its stake in Electronic Arts Inc. by 32.8% during the first quarter, now holding 449,840 shares worth approximately $65 million.
• Institutional investors collectively own 90.23% of Electronic Arts, with notable increases in holdings by Goldman Sachs (up 62.7%) and ING Groep (up 3,477.8%) in the last quarter.
• Electronic Arts has received positive ratings from multiple research firms, with price targets ranging from $155 to $172, indicating strong market confidence.

Primecap Management Co. CA decreased its holdings in Electronic Arts Inc. (NASDAQ:EA - Free Report) by 32.8% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 449,840 shares of the game software company's stock after selling 219,090 shares during the quarter. Primecap Management Co. CA owned 0.17% of Electronic Arts worth $65,011,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Putney Financial Group LLC purchased a new position in Electronic Arts in the fourth quarter worth approximately $26,000. Opal Wealth Advisors LLC purchased a new position in Electronic Arts in the first quarter worth approximately $28,000. Bank of Jackson Hole Trust lifted its stake in Electronic Arts by 56.4% in 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 during the last quarter. LGT Financial Advisors LLC acquired a new stake in Electronic Arts during the fourth quarter worth approximately $33,000. Finally, Wayfinding Financial LLC acquired a new stake in Electronic Arts during the first quarter worth approximately $39,000. Hedge funds and other institutional investors own 90.23% of the company's stock.

Insider Activity

In other news, CEO Andrew Wilson sold 6,563 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $151.18, for a total transaction of $992,194.34. Following the completion of the transaction, the chief executive officer owned 70,059 shares of the company's stock, valued at $10,591,519.62. This represents a 8.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Jacob J. Schatz sold 1,500 shares of the company's stock in a transaction dated Thursday, May 15th. The shares were sold at an average price of $149.64, for a total transaction of $224,460.00. Following the transaction, the executive vice president directly owned 17,533 shares of the company's stock, valued at approximately $2,623,638.12. This represents a 7.88% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 30,729 shares of company stock worth $4,677,124. Company insiders own 0.24% of the company's stock.

Electronic Arts Price Performance

EA stock traded up $4.89 during trading on Friday, hitting $167.64. The stock 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 two-hundred day moving average price is $143.95. Electronic Arts Inc. has a 1-year low of $115.21 and a 1-year high of $168.50. The stock has a market cap of $41.94 billion, a price-to-earnings ratio of 42.02, a price-to-earnings-growth ratio of 2.10 and a beta of 0.72. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.95 and a current ratio of 0.84.

Electronic Arts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 17th. Investors of record on Wednesday, August 27th will be paid a $0.19 dividend. 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 payout ratio is presently 19.05%.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Roth Capital raised shares of Electronic Arts from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $175.00 to $185.00 in a report on Tuesday, June 24th. Hsbc Global Res raised shares of Electronic Arts from a "hold" rating to a "strong-buy" rating in a report on Wednesday, May 7th. Arete Research set a $192.00 price objective on shares of Electronic Arts in a research note on Tuesday. JPMorgan Chase & Co. boosted 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. Finally, The Goldman Sachs Group boosted 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. Sixteen 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 stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $166.35.

Electronic Arts Company Profile

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.