Pentwater Capital Management LP Invests $2.76 Billion in Electronic Arts Inc. $EA

Pentwater Capital Management LP bought a new position in Electronic Arts Inc. (NASDAQ:EA) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 13,475,000 shares of the game software company’s stock, valued at approximately $2,762,914,000. Electronic Arts makes up about 16.9% of Pentwater Capital Management LP’s portfolio, making the stock its biggest position. Pentwater Capital Management LP owned 0.05% of Electronic Arts as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Electronic Arts in the second quarter valued at approximately $5,125,838,000. Geode Capital Management LLC lifted its holdings in Electronic Arts by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 6,764,572 shares of the game software company’s stock valued at $1,382,030,000 after acquiring an additional 143,195 shares during the last quarter. Invesco Ltd. grew its position in Electronic Arts by 4.9% in the third quarter. Invesco Ltd. now owns 4,314,962 shares of the game software company’s stock worth $870,328,000 after buying an additional 202,657 shares during the last quarter. Ameriprise Financial Inc. lifted its position in shares of Electronic Arts by 44.6% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,217,029 shares of the game software company’s stock valued at $673,393,000 after acquiring an additional 1,300,336 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Electronic Arts in the 4th quarter valued at $643,674,000. 90.23% of the stock is currently owned by institutional investors and hedge funds.

Electronic Arts Stock Performance

NASDAQ EA opened at $209.70 on Thursday. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.21 and a quick ratio of 1.05. Electronic Arts Inc. has a one year low of $159.10 and a one year high of $210.20. The stock’s 50-day moving average is $207.67 and its 200-day moving average is $203.79. The firm has a market cap of $52.93 billion, a P/E ratio of 49.23 and a beta of 0.64.

Electronic Arts (NASDAQ:EA) last issued its earnings results on Monday, August 3rd. The game software company reported $1.58 earnings per share for the quarter. Electronic Arts had a return on equity of 22.45% and a net margin of 13.80%.The company had revenue of $1.99 billion for the quarter.

Wall Street Analyst Weigh In

EA has been the subject of a number of research reports. Zacks Research lowered Electronic Arts from a “hold” rating to a “strong sell” rating in a research report on Monday, July 13th. Citigroup raised their price objective on Electronic Arts from $202.00 to $204.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Weiss Ratings upgraded shares of Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, May 18th. Argus cut Electronic Arts from a “buy” rating to a “hold” rating in a report on Thursday, May 28th. Finally, Wall Street Zen upgraded Electronic Arts to a “hold” rating in a research note on Saturday, June 6th. One analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $206.50.

Insider Activity at Electronic Arts

In other Electronic Arts news, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $203.12, for a total value of $1,015,600.00. Following the completion of the sale, the chief executive officer owned 80,974 shares in the company, valued at approximately $16,447,438.88. This trade represents a 5.82% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Laura Miele sold 2,500 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $203.10, for a total value of $507,750.00. Following the sale, the insider directly owned 73,513 shares of the company’s stock, valued at $14,930,490.30. The trade was a 3.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 8,700 shares of company stock valued at $1,766,950 over the last 90 days. Insiders own 0.24% of the company’s stock.

Electronic Arts Profile

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.