Electronic Arts (NASDAQ:EA) Sets New 12-Month High – Time to Buy?

Electronic Arts Inc. (NASDAQ:EA)’s share price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $153.81 and last traded at $153.60, with a volume of 107376 shares. The stock had previously closed at $152.89.

Analysts Set New Price Targets

A number of equities research analysts recently commented on EA shares. BNP Paribas upgraded shares of Electronic Arts to a “strong-buy” rating in a report on Wednesday, October 9th. Wedbush reaffirmed an “outperform” rating and issued a $170.00 target price on shares of Electronic Arts in a research report on Friday, October 25th. Raymond James increased their target price on Electronic Arts from $155.00 to $170.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 31st. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $160.00 price objective on shares of Electronic Arts in a research note on Wednesday, September 18th. Finally, Morgan Stanley restated an “equal weight” rating and set a $150.00 target price on shares of Electronic Arts in a research report on Wednesday, September 18th. Eight equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and two have given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $164.39.

Electronic Arts Stock Performance

The firm’s fifty day simple moving average is $145.05 and its 200 day simple moving average is $140.58. The company has a market capitalization of $40.96 billion, a PE ratio of 39.69, a price-to-earnings-growth ratio of 1.95 and a beta of 0.78. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.43 and a quick ratio of 1.45.

Electronic Arts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 18th. Investors of record on Wednesday, November 27th will be given a dividend of $0.19 per share. The ex-dividend date is Wednesday, November 27th. This represents a $0.76 annualized dividend and a yield of 0.49%. Electronic Arts’s dividend payout ratio is presently 19.54%.

Insiders Place Their Bets

In other Electronic Arts news, CEO Andrew Wilson sold 2,500 shares of the company’s stock in a transaction on Monday, August 26th. The shares were sold at an average price of $148.88, for a total transaction of $372,200.00. Following the completion of the transaction, the chief executive officer now directly owns 56,747 shares in the company, valued at approximately $8,448,493.36. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, CEO Andrew Wilson sold 2,500 shares of the stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $148.88, for a total value of $372,200.00. Following the completion of the sale, the chief executive officer now directly owns 56,747 shares in the company, valued at $8,448,493.36. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Vijayanthimala Singh sold 7,384 shares of the stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $149.91, for a total transaction of $1,106,935.44. Following the transaction, the insider now directly owns 31,190 shares of the company’s stock, valued at approximately $4,675,692.90. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 23,644 shares of company stock worth $3,491,207. Company insiders own 0.22% of the company’s stock.

Institutional Investors Weigh In On Electronic Arts

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Electronic Arts by 14.7% during the 1st quarter. Vanguard Group Inc. now owns 29,159,718 shares of the game software company’s stock worth $3,868,620,000 after acquiring an additional 3,727,251 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in Electronic Arts by 496.9% in the first quarter. Price T Rowe Associates Inc. MD now owns 2,511,250 shares of the game software company’s stock valued at $333,169,000 after purchasing an additional 2,090,504 shares during the period. Swedbank AB purchased a new stake in Electronic Arts in the 1st quarter valued at approximately $201,935,000. Jericho Capital Asset Management L.P. purchased a new position in shares of Electronic Arts during the 1st quarter worth approximately $189,055,000. Finally, Manning & Napier Advisors LLC purchased a new stake in shares of Electronic Arts in the second quarter valued at approximately $188,159,000. 90.23% of the stock is owned by hedge funds and other institutional investors.

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.