Stock Traders Purchase Large Volume of Electronic Arts Call Options (NASDAQ:EA)

Electronic Arts Inc. (NASDAQ:EA) was the recipient of unusually large options trading activity on Monday. Investors bought 37,868 call options on the stock. This represents an increase of 352% compared to the typical daily volume of 8,382 call options.

Electronic Arts Trading Down 0.7 %

Shares of Electronic Arts stock opened at $141.87 on Wednesday. The firm has a 50-day moving average of $132.75 and a 200-day moving average of $144.73. The stock has a market cap of $36.97 billion, a PE ratio of 36.10, a PEG ratio of 3.58 and a beta of 0.78. Electronic Arts has a 52-week low of $115.21 and a 52-week high of $168.50. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.38 and a current ratio of 1.38.

Electronic Arts (NASDAQ:EA) last announced its earnings results on Tuesday, February 4th. The game software company reported $2.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.41 by ($1.07). Electronic Arts had a net margin of 14.28% and a return on equity of 17.80%. As a group, sell-side analysts forecast that Electronic Arts will post 4.71 EPS for the current year.

Electronic Arts Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 19th. Stockholders of record on Wednesday, February 26th will be given a $0.19 dividend. The ex-dividend date is Wednesday, February 26th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.54%. Electronic Arts’s payout ratio is presently 19.34%.

Insiders Place Their Bets

In other news, CEO Andrew Wilson sold 5,000 shares of Electronic Arts stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $148.00, for a total value of $740,000.00. Following the sale, the chief executive officer now directly owns 47,615 shares in the company, valued at $7,047,020. This trade represents a 9.50 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Vijayanthimala Singh sold 1,000 shares of Electronic Arts stock in a transaction that occurred 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 completion of the sale, the insider now owns 28,216 shares in the company, valued at $3,443,198.48. This trade represents a 3.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 23,000 shares of company stock worth $3,194,240. Company insiders own 0.22% of the company’s stock.

Institutional Investors Weigh In On Electronic Arts

Several institutional investors and hedge funds have recently bought and sold shares of the company. Larson Financial Group LLC lifted its position in Electronic Arts by 31.8% during the third quarter. Larson Financial Group LLC now owns 290 shares of the game software company’s stock worth $42,000 after purchasing an additional 70 shares during the period. Claro Advisors LLC lifted its position in Electronic Arts by 3.4% during the fourth quarter. Claro Advisors LLC now owns 2,285 shares of the game software company’s stock worth $334,000 after purchasing an additional 75 shares during the period. Prime Capital Investment Advisors LLC raised its stake in Electronic Arts by 5.1% during the third quarter. Prime Capital Investment Advisors LLC now owns 1,572 shares of the game software company’s stock worth $225,000 after acquiring an additional 76 shares in the last quarter. Intrust Bank NA raised its stake in Electronic Arts by 3.3% during the fourth quarter. Intrust Bank NA now owns 2,475 shares of the game software company’s stock worth $362,000 after acquiring an additional 78 shares in the last quarter. Finally, Parkside Financial Bank & Trust raised its stake in Electronic Arts by 11.1% during the fourth quarter. Parkside Financial Bank & Trust now owns 812 shares of the game software company’s stock worth $119,000 after acquiring an additional 81 shares in the last quarter. Institutional investors own 90.23% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have recently issued reports on EA shares. Roth Mkm lowered their price objective on shares of Electronic Arts from $158.00 to $134.00 and set a “neutral” rating on the stock in a report on Thursday, January 23rd. DA Davidson assumed coverage on shares of Electronic Arts in a report on Wednesday, February 19th. They issued a “neutral” rating and a $140.00 price objective on the stock. BMO Capital Markets lowered their target price on shares of Electronic Arts from $145.00 to $142.00 and set a “market perform” rating on the stock in a report on Wednesday, February 5th. Bank of America boosted their target price on shares of Electronic Arts from $130.00 to $132.00 and gave the stock a “neutral” rating in a report on Wednesday, February 5th. Finally, Robert W. Baird lowered their target price on shares of Electronic Arts from $175.00 to $158.00 and set an “outperform” rating on the stock in a report on Thursday, January 23rd. Thirteen research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, Electronic Arts presently has a consensus rating of “Hold” and an average price target of $154.78.

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.