Wedbush Comments on Electronic Arts' Q3 Earnings (NASDAQ:EA)

Key Points

• Wedbush raised its Q3 2026 earnings per share estimate for Electronic Arts to $3.78, up from a prior estimate of $3.62, and maintains an Outperform rating with a $210.00 price target.
• The average target price for Electronic Arts by analysts is $164.21, with fifteen analysts rating the stock as a hold, eleven as buy, and one as strong buy.
• Electronic Arts announced a quarterly dividend of $0.19 per share, representing an annualized yield of 0.5% and a payout ratio of 19.05%.

Electronic Arts Inc. (NASDAQ:EA - Free Report) - Stock analysts at Wedbush increased their Q3 2026 EPS estimates for Electronic Arts in a research note issued to investors on Wednesday, July 30th. Wedbush analyst A. Reese now anticipates that the game software company will post earnings of $3.78 per share for the quarter, up from their prior estimate of $3.62. Wedbush has a "Outperform" rating and a $210.00 price target on the stock. The consensus estimate for Electronic Arts' current full-year earnings is $4.71 per share. Wedbush also issued estimates for Electronic Arts' FY2026 earnings at $5.94 EPS and Q3 2027 earnings at $3.63 EPS.

Several other equities research analysts have also issued reports on the stock. Morgan Stanley boosted their price target on shares of Electronic Arts from $135.00 to $148.00 and gave the company an "equal weight" rating in a report on Wednesday, May 7th. UBS Group set a $167.00 price target on shares of Electronic Arts and gave the company a "neutral" rating in a report on Friday. JPMorgan Chase & Co. boosted their price target on shares of Electronic Arts from $135.00 to $160.00 and gave the company a "neutral" rating in a report on Wednesday, May 7th. Argus set a $170.00 price target on shares of Electronic Arts in a report on Friday, May 16th. Finally, Wall Street Zen lowered shares of Electronic Arts from a "buy" rating to a "hold" rating in a report on Saturday. Sixteen analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Electronic Arts presently has an average rating of "Hold" and an average price target of $164.21.

Electronic Arts Stock Performance

Electronic Arts stock traded up $4.59 on Friday, hitting $157.08. The company's stock had a trading volume of 4,396,980 shares, compared to its average volume of 2,517,279. The firm has a market cap of $39.47 billion, a P/E ratio of 39.37, a price-to-earnings-growth ratio of 2.04 and a beta of 0.72. The company has a quick ratio of 0.95, a current ratio of 0.84 and a debt-to-equity ratio of 0.24. The company has a fifty day moving average price of $151.42 and a 200-day moving average price of $143.25. Electronic Arts has a one year low of $115.21 and a one year high of $168.50.

Electronic Arts Dividend Announcement

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

Insider Buying and Selling at Electronic Arts

In related news, CEO Andrew Wilson sold 6,563 shares of the stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $151.18, for a total value of $992,194.34. Following the sale, the chief executive officer directly owned 70,059 shares in the company, valued at $10,591,519.62. This trade represents a 8.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Laura Miele sold 2,500 shares of the stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $159.50, for a total transaction of $398,750.00. Following the completion of the sale, the insider owned 60,592 shares in the company, valued at $9,664,424. This represents a 3.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 30,729 shares of company stock valued at $4,677,324. 0.24% of the stock is currently owned by company insiders.

Institutional Trading of Electronic Arts

A number of hedge funds have recently modified their holdings of the company. Motley Fool Asset Management LLC raised its holdings in Electronic Arts by 13.7% during the 2nd quarter. Motley Fool Asset Management LLC now owns 16,464 shares of the game software company's stock worth $2,629,000 after buying an additional 1,986 shares during the period. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its holdings in Electronic Arts by 3.6% during the 2nd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 91,939 shares of the game software company's stock worth $14,683,000 after buying an additional 3,200 shares during the period. Advisory Alpha LLC raised its holdings in Electronic Arts by 3.5% during the 2nd quarter. Advisory Alpha LLC now owns 5,586 shares of the game software company's stock worth $892,000 after buying an additional 188 shares during the period. Teacher Retirement System of Texas raised its holdings in Electronic Arts by 31.2% during the 2nd quarter. Teacher Retirement System of Texas now owns 92,917 shares of the game software company's stock worth $14,839,000 after buying an additional 22,071 shares during the period. Finally, Y Intercept Hong Kong Ltd acquired a new stake in Electronic Arts during the 2nd quarter worth approximately $6,726,000. 90.23% of the stock is currently owned by institutional investors and hedge funds.

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.