Kentucky Retirement Systems Increases Holdings in Electronic Arts Inc. $EA

Kentucky Retirement Systems lifted its holdings in Electronic Arts Inc. (NASDAQ:EA) by 61.7% during the 1st quarter, Holdings Channel.com reports. The firm owned 25,522 shares of the game software company’s stock after buying an additional 9,734 shares during the period. Kentucky Retirement Systems’ holdings in Electronic Arts were worth $5,203,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in EA. Pentwater Capital Management LP boosted its stake in shares of Electronic Arts by 128.1% in the fourth quarter. Pentwater Capital Management LP now owns 10,950,000 shares of the game software company’s stock worth $2,237,414,000 after acquiring an additional 6,150,000 shares during the period. Norges Bank bought a new position in Electronic Arts during the fourth quarter valued at $643,674,000. HBK Investments L P purchased a new position in Electronic Arts in the fourth quarter worth about $390,267,000. Ameriprise Financial Inc. boosted its holdings in shares of Electronic Arts by 44.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,217,029 shares of the game software company’s stock worth $673,393,000 after purchasing an additional 1,300,336 shares during the period. Finally, Voloridge Investment Management LLC bought a new position in Electronic Arts during the fourth quarter valued at $165,153,000. 90.23% of the stock is owned by hedge funds and other institutional investors.

Electronic Arts Stock Up 0.3%

Shares of NASDAQ EA opened at $209.59 on Friday. Electronic Arts Inc. has a 12-month low of $151.50 and a 12-month high of $209.80. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.22. The stock has a market cap of $52.90 billion, a PE ratio of 60.05, a P/E/G ratio of 2.34 and a beta of 0.64. The company has a 50-day moving average of $204.85 and a 200 day moving average of $202.93.

Insider Buying and Selling

In other news, 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 transaction of $1,021,609.56. Following the completion of the transaction, the chief executive officer directly owned 85,974 shares in the company, valued at approximately $17,337,516.84. This represents a 5.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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. Also, EVP Jacob J. Schatz sold 5,000 shares of Electronic Arts stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $201.19, for a total transaction of $1,005,950.00. Following the completion of the sale, the executive vice president owned 42,287 shares of the company’s stock, valued at $8,507,721.53. This trade represents a 10.57% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 31,206 shares of company stock valued at $6,292,058 in the last ninety days. Company insiders own 0.24% of the company’s stock.

Wall Street Analyst Weigh In

EA has been the subject of several research analyst reports. Weiss Ratings upgraded Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, May 18th. Wall Street Zen upgraded Electronic Arts to a “hold” rating in a report on Saturday, June 6th. Citigroup boosted their price objective on shares of Electronic Arts from $202.00 to $204.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Argus cut Electronic Arts from a “buy” rating to a “hold” rating in a research note on Thursday, May 28th. Finally, Zacks Research lowered shares of Electronic Arts from a “hold” rating to a “strong sell” rating in a report on Monday, July 13th. Two analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $201.42.

Key Headlines Impacting Electronic Arts

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

• Positive Sentiment: All regulatory approvals reportedly completed: Electronic Arts said the acquisition by a consortium including Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners has received the necessary regulatory clearances. The transaction is now expected to close next week, a significant catalyst for shareholders. Electronic Arts says all regulatory approvals for its sale have been completed
• Positive Sentiment: Deal certainty supports the stock: Multiple reports say EA’s $55 billion sale is on track to close next week. With the transaction nearing completion, investors have greater visibility into receiving the agreed consideration, although upside may be limited as the market price approaches the deal value. Electronic Arts Set to Close $55 Billion Go-Private Deal Next Week
• Neutral Sentiment: Insider share sale: EA’s chief people officer sold 1,200 shares as the company prepares to go private. The transaction is relatively small and is unlikely to materially change the investment case. Electronic Arts’ Chief People Officer Sells 1,200 Shares
• Negative Sentiment: Executive pay and layoffs draw criticism: Reports that CEO Andrew Wilson received approximately $38.7 million in compensation while EA cut developers have created negative publicity and governance concerns. The criticism may weigh on sentiment, though its effect on the stock is likely limited while the merger remains the dominant driver. Amid layoffs, EA CEO earned $38.7 million

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.