Electronic Arts (NASDAQ:EA) Shares Gap Up After Dividend Announcement

Electronic Arts Inc. (NASDAQ:EA)’s stock price gapped up prior to trading on Wednesday following a dividend announcement from the company. The stock had previously closed at $121.25, but opened at $127.04. Electronic Arts shares last traded at $127.12, with a volume of 1,035,495 shares.

The newly announced dividend which will be paid on Wednesday, March 19th. Investors of record on Wednesday, February 26th will be given a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.58%. The ex-dividend date of this dividend is Wednesday, February 26th. Electronic Arts’s payout ratio is currently 19.54%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Oppenheimer lowered their price objective on shares of Electronic Arts from $170.00 to $165.00 and set an “outperform” rating for the company in a research report on Tuesday, January 21st. Benchmark lowered their price target on shares of Electronic Arts from $163.00 to $140.00 and set a “buy” rating for the company in a report on Wednesday. Wedbush reiterated an “outperform” rating and issued a $173.00 price objective on shares of Electronic Arts in a report on Thursday, January 23rd. Roth Mkm reduced their price target on shares of Electronic Arts from $158.00 to $134.00 and set a “neutral” rating for the company in a research report on Thursday, January 23rd. Finally, BMO Capital Markets decreased their price objective on Electronic Arts from $145.00 to $142.00 and set a “market perform” rating for the company in a report on Wednesday. Twelve analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $155.24.

Electronic Arts Price Performance

The company has a debt-to-equity ratio of 0.25, a current ratio of 1.43 and a quick ratio of 1.43. The stock has a market capitalization of $34.22 billion, a PE ratio of 33.54, a P/E/G ratio of 2.50 and a beta of 0.79. The company has a 50-day moving average of $145.31 and a two-hundred day moving average of $147.54.

Electronic Arts (NASDAQ:EA) last announced its quarterly earnings results on Tuesday, February 4th. The game software company reported $2.34 EPS for the quarter, missing the consensus estimate of $3.41 by ($1.07). Electronic Arts had a return on equity of 18.56% and a net margin of 14.12%. Sell-side analysts predict that Electronic Arts Inc. will post 5.02 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Andrew Wilson sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $142.68, for a total value of $713,400.00. Following the completion of the sale, the chief executive officer now directly owns 42,615 shares in the company, valued at approximately $6,080,308.20. The trade was a 10.50 % 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, insider Vijayanthimala Singh sold 1,000 shares of the business’s stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $122.03, for a total transaction of $122,030.00. Following the sale, the insider now owns 28,216 shares of the company’s stock, valued at approximately $3,443,198.48. The trade was a 3.42 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 23,500 shares of company stock valued at $3,562,510. Corporate insiders own 0.22% of the company’s stock.

Hedge Funds Weigh In On Electronic Arts

Hedge funds and other institutional investors have recently modified their holdings of the company. Ashton Thomas Securities LLC bought a new stake in Electronic Arts during the 3rd quarter valued at $25,000. Pinnacle Bancorp Inc. raised its stake in shares of Electronic Arts by 141.0% during the fourth quarter. Pinnacle Bancorp Inc. now owns 200 shares of the game software company’s stock valued at $29,000 after purchasing an additional 117 shares in the last quarter. Whipplewood Advisors LLC bought a new stake in shares of Electronic Arts during the fourth quarter valued at about $32,000. Reston Wealth Management LLC acquired a new stake in Electronic Arts in the third quarter worth about $36,000. Finally, Bruce G. Allen Investments LLC grew its position in Electronic Arts by 156.6% in the 3rd quarter. Bruce G. Allen Investments LLC now owns 272 shares of the game software company’s stock valued at $39,000 after buying an additional 166 shares in the last quarter. Institutional investors and hedge funds own 90.23% of the company’s stock.

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.