Electronic Arts (NASDAQ:EA) Shares Gap Up – Should You Buy?

Electronic Arts Inc. (NASDAQ:EA) gapped up before the market opened on Monday . The stock had previously closed at $193.35, but opened at $203.50. Electronic Arts shares last traded at $202.88, with a volume of 9,177,075 shares trading hands.

Analyst Upgrades and Downgrades

EA has been the topic of a number of research reports. DA Davidson lifted their price objective on Electronic Arts from $150.00 to $160.00 and gave the stock a “neutral” rating in a research note on Monday, August 11th. Citigroup reaffirmed a “neutral” rating on shares of Electronic Arts in a research note on Friday. UBS Group set a $167.00 target price on shares of Electronic Arts and gave the stock a “neutral” rating in a report on Friday, August 1st. Roth Capital raised shares of Electronic Arts from a “neutral” rating to a “buy” rating and increased their price target for the company from $175.00 to $185.00 in a report on Tuesday, June 24th. Finally, HSBC downgraded shares of Electronic Arts from a “buy” rating to a “hold” rating and set a $191.00 target price on the stock. in a research note on Monday. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and seventeen have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $168.64.

Electronic Arts Stock Up 4.6%

The stock has a market cap of $50.62 billion, a PE ratio of 50.71, a P/E/G ratio of 2.94 and a beta of 0.75. The business has a 50 day moving average price of $167.67 and a 200 day moving average price of $154.67. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.24.

Electronic Arts Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 17th. Investors of record on Wednesday, August 27th were paid a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Wednesday, August 27th. Electronic Arts’s dividend payout ratio is currently 19.05%.

Insider Activity at Electronic Arts

In related news, CEO Andrew Wilson sold 5,000 shares of the company’s stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $172.79, for a total transaction of $863,950.00. Following the completion of the sale, the chief executive officer owned 47,393 shares of the company’s stock, valued at approximately $8,189,036.47. This represents a 9.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Vijayanthimala Singh sold 1,200 shares of the company’s stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $171.52, for a total value of $205,824.00. Following the completion of the sale, the insider owned 34,731 shares of the company’s stock, valued at $5,957,061.12. This trade represents a 3.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 30,800 shares of company stock worth $5,077,960 over the last 90 days. Corporate insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Electronic Arts

A number of institutional investors have recently made changes to their positions in the stock. Salomon & Ludwin LLC raised its holdings in shares of Electronic Arts by 70.1% in the 2nd quarter. Salomon & Ludwin LLC now owns 165 shares of the game software company’s stock valued at $26,000 after buying an additional 68 shares during the period. Opal Wealth Advisors LLC acquired a new stake in Electronic Arts during the 1st quarter worth approximately $28,000. Bank of Jackson Hole Trust grew its stake in shares of Electronic Arts by 56.4% in the first quarter. Bank of Jackson Hole Trust now owns 208 shares of the game software company’s stock worth $30,000 after acquiring an additional 75 shares in the last quarter. MTM Investment Management LLC acquired a new stake in Electronic Arts in the 2nd quarter valued at about $30,000. Finally, Frazier Financial Advisors LLC grew its holdings in Electronic Arts by 328.9% during the 2nd quarter. Frazier Financial Advisors LLC now owns 193 shares of the game software company’s stock worth $31,000 after acquiring an additional 148 shares in the last quarter. 90.23% of the stock is currently owned by institutional investors and hedge funds.

About Electronic Arts

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.