Carmignac Gestion Grows Position in Electronic Arts Inc. $EA

Carmignac Gestion lifted its position in shares of Electronic Arts Inc. (NASDAQ:EA) by 70.3% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 48,934 shares of the game software company’s stock after purchasing an additional 20,194 shares during the quarter. Carmignac Gestion’s holdings in Electronic Arts were worth $9,976,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Parallel Advisors LLC grew its position in Electronic Arts by 10.5% during the first quarter. Parallel Advisors LLC now owns 6,460 shares of the game software company’s stock valued at $1,317,000 after buying an additional 615 shares during the period. NewEdge Advisors LLC raised its position in shares of Electronic Arts by 51.5% in the first quarter. NewEdge Advisors LLC now owns 9,054 shares of the game software company’s stock worth $1,846,000 after acquiring an additional 3,078 shares during the period. Carlson Capital L.P. raised its position in shares of Electronic Arts by 12.5% in the first quarter. Carlson Capital L.P. now owns 13,500 shares of the game software company’s stock worth $2,752,000 after acquiring an additional 1,500 shares during the period. Glenmede Trust Co. NA boosted its stake in shares of Electronic Arts by 1.1% during the 1st quarter. Glenmede Trust Co. NA now owns 20,034 shares of the game software company’s stock worth $4,084,000 after acquiring an additional 219 shares in the last quarter. Finally, Groupe la Francaise boosted its stake in shares of Electronic Arts by 80.5% during the 1st quarter. Groupe la Francaise now owns 65,396 shares of the game software company’s stock worth $13,332,000 after acquiring an additional 29,156 shares in the last quarter. 90.23% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Electronic Arts

In other news, insider Laura Miele sold 2,500 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $203.10, for a total value of $507,750.00. Following the transaction, the insider owned 73,513 shares in the company, valued at $14,930,490.30. This trade represents a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Wilson sold 5,066 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.66, for a total value of $1,021,609.56. Following the sale, the chief executive officer owned 85,974 shares of the company’s stock, valued at $17,337,516.84. The trade was a 5.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders have sold 31,206 shares of company stock valued at $6,292,058. 0.24% of the stock is owned by insiders.

Analyst Ratings Changes

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

Trending Headlines about Electronic Arts

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

• Positive Sentiment: Takeover has cleared its final regulatory hurdle: The European Union approved the transaction under its foreign-subsidy rules, and EA said all required regulatory approvals have been obtained. The deal is expected to close on August 4, reducing execution risk and providing a clear near-term catalyst. Reuters article
• Positive Sentiment: Unusually heavy call-option activity signals bullish positioning: Investors bought 6,913 EA call options, approximately 120% above the average daily volume of 3,137 contracts. This may reflect expectations that the acquisition will close as planned, although options activity is not a guarantee of future performance.
• Neutral Sentiment: Shares are increasingly being valued on deal completion rather than operating results: With EA expected to go private next week, the stock’s remaining upside is likely tied primarily to the transaction terms and closing certainty. Once completed, EA shares would no longer trade publicly. GamesIndustry.biz article
• Neutral Sentiment: Broker sentiment remains mixed: Analysts tracked in a recent report assign Electronic Arts an average “Hold” recommendation, suggesting limited conviction in the stock beyond the pending merger. Broker recommendation article
• Negative Sentiment: Executive compensation and insider selling may weigh on sentiment: Reports that EA’s CEO received approximately $38.7 million in compensation amid layoffs, alongside a chief people officer’s sale of 1,200 shares, could generate governance concerns. These issues are secondary to the acquisition catalyst but may attract investor criticism. Yahoo Finance article

Electronic Arts Trading Up 0.0%

EA stock opened at $209.88 on Monday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.22. Electronic Arts Inc. has a 12-month low of $151.50 and a 12-month high of $209.93. The stock has a market cap of $52.97 billion, a price-to-earnings ratio of 60.14, a PEG ratio of 2.35 and a beta of 0.64. The business’s 50-day moving average is $205.03 and its 200 day moving average is $202.97.

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.