Electronic Arts (NASDAQ:EA) Sees Strong Trading Volume – Still a Buy?

Shares of Electronic Arts Inc. (NASDAQ:EA) saw unusually-strong trading volume on Friday . Approximately 5,732,768 shares were traded during mid-day trading, an increase of 64% from the previous session’s volume of 3,503,818 shares.The stock last traded at $115.91 and had previously closed at $118.58.

Analyst Upgrades and Downgrades

EA has been the subject of a number of research analyst reports. DZ Bank raised Electronic Arts from a “hold” rating to a “buy” rating and lifted their target price for the stock from $135.00 to $177.00 in a report on Thursday, October 31st. Wedbush reiterated an “outperform” rating and issued a $173.00 price objective on shares of Electronic Arts in a research note on Thursday. Robert W. Baird decreased their target price on shares of Electronic Arts from $175.00 to $158.00 and set an “outperform” rating on the stock in a research report on Thursday. Benchmark reiterated a “buy” rating and issued a $163.00 price target on shares of Electronic Arts in a research report on Wednesday, October 30th. Finally, StockNews.com upgraded Electronic Arts from a “buy” rating to a “strong-buy” rating in a research note on Thursday, October 31st. Eleven investment analysts have rated the stock with a hold rating, eight have given a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $159.79.

Electronic Arts Stock Performance

The stock has a market cap of $30.57 billion, a price-to-earnings ratio of 29.97, a P/E/G ratio of 1.87 and a beta of 0.80. The company’s fifty day simple moving average is $153.33 and its two-hundred day simple moving average is $148.99. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.43 and a quick ratio of 1.43.

Electronic Arts Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 18th. Investors of record on Wednesday, November 27th were issued a dividend of $0.19 per share. The ex-dividend date of this dividend was Wednesday, November 27th. This represents a $0.76 annualized dividend and a yield of 0.65%. Electronic Arts’s dividend payout ratio (DPR) is currently 19.54%.

Insider Transactions at Electronic Arts

In related news, CEO Andrew Wilson sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $142.68, for a total transaction of $713,400.00. Following the completion of the sale, the chief executive officer now owns 42,615 shares in the company, valued at approximately $6,080,308.20. This trade represents a 10.50 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Jacob J. Schatz sold 1,500 shares of the firm’s stock in a transaction that occurred on Friday, November 15th. The stock was sold at an average price of $163.30, for a total transaction of $244,950.00. Following the sale, the executive vice president now owns 23,360 shares of the company’s stock, valued at approximately $3,814,688. The trade was a 6.03 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 26,000 shares of company stock worth $3,986,385 in the last quarter. 0.22% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC increased its holdings in Electronic Arts by 28.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,386 shares of the game software company’s stock worth $209,000 after acquiring an additional 306 shares during the period. Public Sector Pension Investment Board increased its holdings in shares of Electronic Arts by 97.6% in the second quarter. Public Sector Pension Investment Board now owns 7,969 shares of the game software company’s stock worth $1,110,000 after purchasing an additional 3,936 shares during the period. Squarepoint Ops LLC raised its position in shares of Electronic Arts by 132.9% in the second quarter. Squarepoint Ops LLC now owns 116,458 shares of the game software company’s stock worth $16,226,000 after buying an additional 66,449 shares in the last quarter. DoubleLine ETF Adviser LP raised its position in shares of Electronic Arts by 11.7% in the second quarter. DoubleLine ETF Adviser LP now owns 31,127 shares of the game software company’s stock worth $4,337,000 after buying an additional 3,256 shares in the last quarter. Finally, D. E. Shaw & Co. Inc. boosted its stake in Electronic Arts by 43.3% during the second quarter. D. E. Shaw & Co. Inc. now owns 1,390,418 shares of the game software company’s stock valued at $193,727,000 after buying an additional 420,382 shares during the period. 90.23% of the stock is currently owned by hedge funds and other institutional investors.

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.