Electronic Arts Inc. (NASDAQ:EA) Sees Large Decline in Short Interest

Electronic Arts Inc. (NASDAQ:EA) saw a significant decline in short interest in September. As of September 30th, there was short interest totalling 6,010,000 shares, a decline of 9.5% from the September 15th total of 6,640,000 shares. Currently, 2.5% of the shares of the stock are sold short. Based on an average daily volume of 2,070,000 shares, the days-to-cover ratio is currently 2.9 days.

Insiders Place Their Bets

In related news, insider Vijayanthimala Singh sold 7,384 shares of Electronic Arts stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $149.91, for a total value of $1,106,935.44. Following the completion of the transaction, the insider now directly owns 31,190 shares of the company’s stock, valued at $4,675,692.90. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In other Electronic Arts news, insider Vijayanthimala Singh sold 7,384 shares of the stock in a transaction dated Wednesday, August 28th. The shares were sold at an average price of $149.91, for a total transaction of $1,106,935.44. Following the sale, the insider now owns 31,190 shares of the company’s stock, valued at $4,675,692.90. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Jacob J. Schatz sold 1,500 shares of the business’s stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $149.32, for a total transaction of $223,980.00. Following the completion of the transaction, the executive vice president now directly owns 27,860 shares of the company’s stock, valued at approximately $4,160,055.20. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 24,770 shares of company stock valued at $3,643,785. 0.22% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of EA. North Star Investment Management Corp. increased its stake in Electronic Arts by 333.3% in the 1st quarter. North Star Investment Management Corp. now owns 195 shares of the game software company’s stock valued at $26,000 after buying an additional 150 shares during the last quarter. Redmont Wealth Advisors LLC bought a new stake in Electronic Arts during the first quarter worth about $27,000. Opal Wealth Advisors LLC acquired a new position in Electronic Arts during the second quarter valued at approximately $28,000. Family Firm Inc. acquired a new position in Electronic Arts during the second quarter valued at approximately $33,000. Finally, Gradient Investments LLC grew its stake in Electronic Arts by 592.1% in the second quarter. Gradient Investments LLC now owns 263 shares of the game software company’s stock valued at $37,000 after purchasing an additional 225 shares in the last quarter. 90.23% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on EA shares. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $160.00 target price on shares of Electronic Arts in a research report on Wednesday, September 18th. The Goldman Sachs Group upped their target price on shares of Electronic Arts from $139.00 to $150.00 and gave the company a “neutral” rating in a research report on Wednesday, July 31st. Jefferies Financial Group began coverage on shares of Electronic Arts in a research report on Thursday, July 11th. They set a “buy” rating and a $165.00 price target for the company. BNP Paribas upgraded shares of Electronic Arts to a “strong-buy” rating in a report on Wednesday, October 9th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Electronic Arts from $148.00 to $155.00 and gave the stock a “neutral” rating in a report on Monday, July 15th. Nine investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $161.94.

Electronic Arts Stock Down 0.6 %

EA stock traded down $0.84 during mid-day trading on Thursday, hitting $144.20. 1,095,789 shares of the company were exchanged, compared to its average volume of 2,064,459. The firm has a market cap of $38.32 billion, a P/E ratio of 30.81, a P/E/G ratio of 1.95 and a beta of 0.79. Electronic Arts has a 1-year low of $119.92 and a 1-year high of $153.51. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.45 and a current ratio of 1.45. The firm’s 50 day simple moving average is $145.27 and its 200 day simple moving average is $138.91.

Electronic Arts (NASDAQ:EA) last issued its quarterly earnings data on Tuesday, July 30th. The game software company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.06. The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.21 billion. Electronic Arts had a net margin of 15.77% and a return on equity of 16.34%. On average, sell-side analysts predict that Electronic Arts will post 5.93 EPS for the current fiscal year.

Electronic Arts Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 18th. Stockholders of record on Wednesday, August 28th were given a dividend of $0.19 per share. The ex-dividend date was Wednesday, August 28th. This represents a $0.76 annualized dividend and a dividend yield of 0.53%. Electronic Arts’s dividend payout ratio is currently 16.24%.

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.