Electronic Arts (NASDAQ:EA) Reaches New 12-Month High – Still a Buy?

Electronic Arts Inc. (NASDAQ:EA)’s stock price hit a new 52-week high on Tuesday . The stock traded as high as $209.36 and last traded at $209.2080, with a volume of 4619 shares trading hands. The stock had previously closed at $209.07.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, May 18th. Wall Street Zen raised shares of Electronic Arts to a “hold” rating in a research report on Saturday, June 6th. Citigroup boosted their price target on shares of Electronic Arts from $202.00 to $204.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Argus downgraded shares of Electronic Arts from a “buy” rating to a “hold” rating in a research report on Thursday, May 28th. Finally, Zacks Research lowered shares of Electronic Arts from a “hold” rating to a “strong sell” rating in a research note on Monday, July 13th. Two research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Electronic Arts presently has a consensus rating of “Hold” and a consensus price target of $201.42.

Electronic Arts Stock Performance

The firm has a market cap of $52.38 billion, a PE ratio of 59.86, a PEG ratio of 2.34 and a beta of 0.64. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.22. The company has a 50-day simple moving average of $204.70 and a two-hundred day simple moving average of $202.89.

Electronic Arts Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Wednesday, May 27th were 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 was Wednesday, May 27th. Electronic Arts’s payout ratio is 21.78%.

Insider Buying and Selling

In related news, CFO Stuart Canfield sold 1,500 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $201.36, for a total transaction of $302,040.00. Following the completion of the transaction, the chief financial officer owned 25,991 shares in the company, valued at approximately $5,233,547.76. This represents a 5.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Laura Miele sold 2,500 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $203.10, for a total transaction of $507,750.00. Following the sale, the insider owned 73,513 shares of the company’s stock, valued at $14,930,490.30. This trade represents a 3.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 31,206 shares of company stock worth $6,292,058 in the last ninety days. Corporate insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Electronic Arts

A number of hedge funds have recently modified their holdings of EA. Ascentis Independent Advisors bought a new position in Electronic Arts during the first quarter valued at $27,000. Torren Management LLC raised its stake in shares of Electronic Arts by 235.0% in the second quarter. Torren Management LLC now owns 134 shares of the game software company’s stock valued at $27,000 after buying an additional 94 shares during the period. MV Capital Management Inc. bought a new stake in shares of Electronic Arts in the fourth quarter valued at $28,000. Asset Planning Inc purchased a new position in shares of Electronic Arts during the 1st quarter valued at $32,000. Finally, Whipplewood Advisors LLC purchased a new position in shares of Electronic Arts during the 1st quarter valued at $32,000. Institutional investors own 90.23% of the company’s stock.

About Electronic Arts

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.