Electronic Arts (NASDAQ:EA) Sets New 52-Week High – Should You Buy?

Electronic Arts Inc. (NASDAQ:EA)’s stock price reached a new 52-week high on Tuesday . The stock traded as high as $206.00 and last traded at $205.6510, with a volume of 81815 shares changing hands. The stock had previously closed at $205.21.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on EA shares. Weiss Ratings upgraded shares of Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, May 18th. Argus lowered shares of Electronic Arts from a “buy” rating to a “hold” rating in a report on Thursday, May 28th. Citigroup lifted their price target 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. Finally, Wall Street Zen upgraded shares of Electronic Arts to a “hold” rating in a report on Saturday, June 6th. Two research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $196.64.

Electronic Arts Price Performance

The company has a debt-to-equity ratio of 0.22, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a fifty day moving average of $202.50 and a two-hundred day moving average of $202.47. The stock has a market capitalization of $51.57 billion, a P/E ratio of 58.95, a P/E/G ratio of 2.31 and a beta of 0.64.

Electronic Arts Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, May 27th were given a dividend of $0.19 per share. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $0.76 dividend on an annualized basis and a yield of 0.4%. Electronic Arts’s dividend payout ratio (DPR) is 21.78%.

Insiders Place Their Bets

In related news, insider Vijayanthimala Singh sold 1,200 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $203.00, for a total value of $243,600.00. Following the completion of the transaction, the insider owned 26,360 shares of the company’s stock, valued at $5,351,080. The trade was a 4.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stuart Canfield sold 1,500 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $201.36, for a total transaction of $302,040.00. Following the completion of the transaction, the chief financial officer directly owned 25,991 shares of the company’s stock, valued at $5,233,547.76. This trade represents a 5.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last 90 days, insiders have sold 39,906 shares of company stock worth $8,060,033. 0.24% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. Swiss Life Asset Management Ltd grew its stake in shares of Electronic Arts by 75.8% during the third quarter. Swiss Life Asset Management Ltd now owns 85,245 shares of the game software company’s stock worth $17,194,000 after acquiring an additional 36,769 shares during the last quarter. Nisa Investment Advisors LLC boosted its stake in Electronic Arts by 9.2% in the 4th quarter. Nisa Investment Advisors LLC now owns 110,851 shares of the game software company’s stock worth $22,650,000 after purchasing an additional 9,297 shares in the last quarter. Barometer Capital Management Inc. purchased a new stake in Electronic Arts during the 3rd quarter worth approximately $4,503,000. Vestcor Inc increased its stake in Electronic Arts by 43.2% during the 3rd quarter. Vestcor Inc now owns 112,668 shares of the game software company’s stock valued at $22,725,000 after purchasing an additional 33,982 shares in the last quarter. Finally, Nordea Investment Management AB raised its holdings in shares of Electronic Arts by 33.6% in the fourth quarter. Nordea Investment Management AB now owns 227,893 shares of the game software company’s stock worth $46,554,000 after buying an additional 57,268 shares during the last quarter. 90.23% of the stock is owned by institutional investors.

Electronic Arts Company Profile

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.