Electronic Arts Inc. $EA Shares Purchased by Empowered Funds LLC

Empowered Funds LLC grew its holdings in shares of Electronic Arts Inc. (NASDAQ:EA) by 150.9% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 39,060 shares of the game software company’s stock after purchasing an additional 23,495 shares during the period. Empowered Funds LLC’s holdings in Electronic Arts were worth $7,963,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of EA. Ascentis Independent Advisors bought a new stake in shares of Electronic Arts during the 1st quarter valued at about $27,000. MV Capital Management Inc. acquired a new position in Electronic Arts in the fourth quarter valued at approximately $28,000. Asset Planning Inc bought a new position in shares of Electronic Arts during the first quarter valued at approximately $32,000. Whipplewood Advisors LLC bought a new position in shares of Electronic Arts during the first quarter valued at approximately $32,000. Finally, Fideuram Asset Management Ireland dac acquired a new stake in shares of Electronic Arts during the 4th quarter worth approximately $44,000. 90.23% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on EA shares. Wall Street Zen raised Electronic Arts to a “hold” rating in a report on Saturday, June 6th. Weiss Ratings upgraded Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, May 18th. Citigroup increased their target price on Electronic Arts from $202.00 to $204.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Argus downgraded shares of Electronic Arts from a “buy” rating to a “hold” rating in a 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 report on Monday, July 13th. Two analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $201.42.

Electronic Arts Stock Performance

Shares of EA stock opened at $209.88 on Friday. Electronic Arts Inc. has a 12-month low of $151.50 and a 12-month high of $209.93. The firm has a market capitalization of $52.97 billion, a price-to-earnings ratio of 60.14, a price-to-earnings-growth ratio of 2.35 and a beta of 0.64. The business has a 50 day simple moving average of $205.03 and a 200 day simple moving average of $202.98. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.05 and a quick ratio of 1.05.

Key Stories Impacting Electronic Arts

Here are the key news stories impacting Electronic Arts this week:

• Positive Sentiment: Takeover has cleared its final regulatory hurdle: The European Union approved the transaction under its foreign-subsidy rules, and EA said all required regulatory approvals have been obtained. The deal is expected to close on August 4, reducing execution risk and providing a clear near-term catalyst. Reuters article
• Positive Sentiment: Unusually heavy call-option activity signals bullish positioning: Investors bought 6,913 EA call options, approximately 120% above the average daily volume of 3,137 contracts. This may reflect expectations that the acquisition will close as planned, although options activity is not a guarantee of future performance.
• Neutral Sentiment: Shares are increasingly being valued on deal completion rather than operating results: With EA expected to go private next week, the stock’s remaining upside is likely tied primarily to the transaction terms and closing certainty. Once completed, EA shares would no longer trade publicly. GamesIndustry.biz article
• Neutral Sentiment: Broker sentiment remains mixed: Analysts tracked in a recent report assign Electronic Arts an average “Hold” recommendation, suggesting limited conviction in the stock beyond the pending merger. Broker recommendation article
• Negative Sentiment: Executive compensation and insider selling may weigh on sentiment: Reports that EA’s CEO received approximately $38.7 million in compensation amid layoffs, alongside a chief people officer’s sale of 1,200 shares, could generate governance concerns. These issues are secondary to the acquisition catalyst but may attract investor criticism. Yahoo Finance article

Insider Activity at Electronic Arts

In other Electronic Arts news, EVP Jacob J. Schatz sold 5,000 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $201.19, for a total transaction of $1,005,950.00. Following the completion of the transaction, the executive vice president owned 42,287 shares in the company, valued at approximately $8,507,721.53. The trade was a 10.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew Wilson sold 5,066 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $201.66, for a total value of $1,021,609.56. Following the completion of the transaction, the chief executive officer directly owned 85,974 shares of the company’s stock, valued at approximately $17,337,516.84. The trade was a 5.56% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 31,206 shares of company stock worth $6,292,058 in the last ninety days. 0.24% of the stock is currently owned by corporate insiders.

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.