Electronic Arts Inc. Announces Quarterly Dividend of $0.19 (NASDAQ:EA)

Electronic Arts Inc. (NASDAQ:EA) declared a quarterly dividend on Friday, October 24th. Investors of record on Wednesday, December 3rd will be paid a dividend of 0.19 per share by the game software company on Tuesday, December 23rd. This represents a c) dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Wednesday, December 3rd.

Electronic Arts has a dividend payout ratio of 8.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Electronic Arts to earn $5.59 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 13.6%.

Electronic Arts Price Performance

EA stock opened at $201.93 on Monday. The company has a fifty day moving average price of $198.30 and a 200-day moving average price of $172.58. Electronic Arts has a 52-week low of $115.21 and a 52-week high of $203.75. The company has a market capitalization of $50.50 billion, a P/E ratio of 59.04, a PEG ratio of 3.04 and a beta of 0.74. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.84 and a current ratio of 0.84.

Electronic Arts (NASDAQ:EA) last posted its quarterly earnings data on Tuesday, October 28th. The game software company reported $0.65 EPS for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.07). Electronic Arts had a return on equity of 15.30% and a net margin of 12.14%.The company had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.88 billion. During the same period in the prior year, the firm earned $1.11 earnings per share. Electronic Arts’s revenue was down 12.6% compared to the same quarter last year. As a group, equities analysts expect that Electronic Arts will post 4.71 EPS for the current year.

Insider Buying and Selling

In other news, insider Laura Miele sold 2,500 shares of Electronic Arts stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $201.06, for a total value of $502,650.00. Following the transaction, the insider owned 55,648 shares in the company, valued at approximately $11,188,586.88. The trade was a 4.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Andrew Wilson sold 5,000 shares of Electronic Arts stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $201.05, for a total value of $1,005,250.00. Following the completion of the transaction, the chief executive officer directly owned 48,858 shares in the company, valued at $9,822,900.90. This trade represents a 9.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 137,369 shares of company stock worth $27,307,702 over the last ninety days. Corporate insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Electronic Arts

A number of large investors have recently added to or reduced their stakes in EA. Vanguard Group Inc. boosted its holdings in shares of Electronic Arts by 0.5% during the 1st quarter. Vanguard Group Inc. now owns 29,052,085 shares of the game software company’s stock valued at $4,198,607,000 after buying an additional 150,438 shares in the last quarter. State Street Corp raised its position in shares of Electronic Arts by 5.8% in the 2nd quarter. State Street Corp now owns 17,072,959 shares of the game software company’s stock worth $2,726,552,000 after purchasing an additional 932,024 shares during the last quarter. Pentwater Capital Management LP purchased a new stake in Electronic Arts during the 3rd quarter valued at about $968,160,000. Ameriprise Financial Inc. grew its holdings in shares of Electronic Arts by 8.9% during the third quarter. Ameriprise Financial Inc. now owns 4,591,869 shares of the game software company’s stock valued at $926,194,000 after buying an additional 374,840 shares during the last quarter. Finally, Ninety One UK Ltd increased its holdings in shares of Electronic Arts by 4.6% in the 2nd quarter. Ninety One UK Ltd now owns 4,355,950 shares of the game software company’s stock worth $695,645,000 after purchasing an additional 193,442 shares in the last quarter. Institutional investors own 90.23% of the company’s stock.

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.