Federated Hermes Inc. Cuts Holdings in Electronic Arts Inc. $EA

Federated Hermes Inc. lowered its holdings in Electronic Arts Inc. (NASDAQ:EA) by 96.1% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,181 shares of the game software company’s stock after selling 101,836 shares during the quarter. Federated Hermes Inc.’s holdings in Electronic Arts were worth $843,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Valeo Financial Advisors LLC purchased a new stake in shares of Electronic Arts during the third quarter valued at $209,000. Truist Financial Corp lifted its stake in Electronic Arts by 6.5% during the 3rd quarter. Truist Financial Corp now owns 13,207 shares of the game software company’s stock valued at $2,664,000 after acquiring an additional 803 shares during the period. EPG Wealth Management LLC boosted its holdings in shares of Electronic Arts by 7.9% during the 3rd quarter. EPG Wealth Management LLC now owns 4,137 shares of the game software company’s stock valued at $834,000 after acquiring an additional 302 shares during the last quarter. J. Safra Sarasin Holding AG grew its stake in shares of Electronic Arts by 10.1% in the third quarter. J. Safra Sarasin Holding AG now owns 17,148 shares of the game software company’s stock worth $3,459,000 after acquiring an additional 1,577 shares during the period. Finally, Aspire Growth Partners LLC purchased a new position in shares of Electronic Arts during the third quarter valued at approximately $215,000. 90.23% of the stock is owned by institutional investors.

Electronic Arts News Summary

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

• Positive Sentiment: Q3 revenue beat and management said Battlefield 6 drove record bookings, supporting near-term topline strength. Electronic Arts beats revenue estimates as Battlefield 6 drives record bookings
• Positive Sentiment: Battlefield 6 set new franchise engagement and sales records, underpinning higher monetization and player engagement metrics. Battlefield 6 sets ‘new franchise engagement records’ for EA
• Positive Sentiment: EA announced a dividend that coincided with elevated trading volume — a liquidity/event-driven catalyst that can lift the stock. Electronic Arts (NASDAQ:EA) Sees Strong Trading Volume After Dividend Announcement
• Positive Sentiment: Analysis suggests ~5% upside from merger-arbitrage positioning, which may attract event-driven buyers. Electronic Arts: 5% Upside From Merger Arbitrage
• Neutral Sentiment: EA struck a multi-year partnership with Stability AI to explore generative AI tools — strategically interesting but execution- and timing-dependent for material near-term revenue impact. Electronic Arts partners with Stability AI to explore generative AI tools
• Neutral Sentiment: Street consensus on EA is an average “Hold,” signaling limited analyst conviction to push the stock substantially higher absent follow-through. Electronic Arts Inc. (NASDAQ:EA) Receives Average Rating of “Hold” from Analysts
• Neutral Sentiment: Small insider option exercises were reported (minimal dollar amounts), a routine disclosure with negligible market impact. Notable Insider Move: Talbott Roche Hoskins Takes Part In Options Exercise At Electronic Arts, Resulting In $-651
• Negative Sentiment: Citigroup lowered its expectations for EA’s stock price, a direct negative signal from a major bank that can pressure sentiment. Citigroup Has Lowered Expectations for Electronic Arts (NASDAQ:EA) Stock Price
• Negative Sentiment: Analysts and filings flagged elevated risk and a higher cost of capital tied to uncertainty around the PIF-led merger, which could weigh on valuation multiples. Electronic Arts Faces Elevated Risk and Cost of Capital Amid Uncertain 2025 PIF-Led Merger
• Negative Sentiment: Despite revenue strength, EA reported a Q3 profit decline and some reports noted misses on headline EPS — mixed fundamentals that cap upside until margins/stability improve. EA’s Third-Quarter Profit Falls, Despite Higher Revenue
• Negative Sentiment: Valuation pieces highlight long-term outperformance and potential overvaluation concerns — a reminder of premium multiples (high P/E) that could amplify downside on any growth miss. A Look At Electronic Arts (EA) Valuation After Strong Long Term Returns And Overvaluation Concerns

Insider Buying and Selling

In other Electronic Arts news, insider Laura Miele sold 2,500 shares of the firm’s stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $204.27, for a total transaction of $510,675.00. Following the sale, the insider owned 50,648 shares in the company, valued at approximately $10,345,866.96. This trade represents a 4.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jeff Huber sold 16,788 shares of the company’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $200.72, for a total transaction of $3,369,687.36. Following the completion of the transaction, the director owned 1,980 shares of the company’s stock, valued at approximately $397,425.60. The trade was a 89.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 123,769 shares of company stock worth $24,943,734 in the last ninety days. Corporate insiders own 0.24% of the company’s stock.

Analyst Upgrades and Downgrades

EA has been the topic of several research reports. Morgan Stanley raised their target price on shares of Electronic Arts from $148.00 to $210.00 and gave the stock an “equal weight” rating in a report on Monday, October 20th. Benchmark reissued a “buy” rating on shares of Electronic Arts in a report on Wednesday, October 29th. Argus set a $210.00 price objective on Electronic Arts in a report on Thursday, October 30th. Zacks Research downgraded Electronic Arts from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Finally, Citigroup cut their price target on Electronic Arts from $207.00 to $202.00 and set a “neutral” rating for the company in a research note on Wednesday. Four investment analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Electronic Arts presently has a consensus rating of “Hold” and an average price target of $186.95.

Electronic Arts Price Performance

Shares of Electronic Arts stock opened at $200.00 on Friday. The stock’s fifty day moving average is $203.65 and its 200 day moving average is $190.64. Electronic Arts Inc. has a one year low of $127.24 and a one year high of $204.88. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.84 and a current ratio of 0.93. The stock has a market cap of $50.05 billion, a P/E ratio of 75.19, a P/E/G ratio of 2.38 and a beta of 0.74.

Electronic Arts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 18th. Investors of record on Wednesday, February 25th will be paid a dividend of $0.19 per share. The ex-dividend date is Wednesday, February 25th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.4%. Electronic Arts’s payout ratio is 28.57%.

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.