Groupe la Francaise Increases Stake in Electronic Arts Inc. $EA

Groupe la Francaise grew its stake in shares of Electronic Arts Inc. (NASDAQ:EA – Free Report) by 80.5% in the first quarter, HoldingsChannel.com reports. The firm owned 65,396 shares of the game software company’s stock after buying an additional 29,156 shares during the quarter. Groupe la Francaise’s holdings in Electronic Arts were worth $13,332,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC raised its stake in shares of Electronic Arts by 9.4% during the fourth quarter. Brighton Jones LLC now owns 3,420 shares of the game software company’s stock valued at $500,000 after acquiring an additional 294 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Electronic Arts by 167.0% during the first quarter. Empowered Funds LLC now owns 19,306 shares of the game software company’s stock valued at $2,790,000 after acquiring an additional 12,076 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Electronic Arts by 150.8% during the first quarter. Geneos Wealth Management Inc. now owns 316 shares of the game software company’s stock valued at $46,000 after acquiring an additional 190 shares in the last quarter. Jump Financial LLC purchased a new stake in Electronic Arts in the second quarter worth $2,323,000. Finally, NewEdge Advisors LLC lifted its stake in Electronic Arts by 96.4% in the second quarter. NewEdge Advisors LLC now owns 3,067 shares of the game software company’s stock worth $490,000 after acquiring an additional 1,505 shares during the period. Hedge funds and other institutional investors own 90.23% of the company’s stock.

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Key Electronic Arts News

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

• Positive Sentiment: All regulatory approvals reportedly completed: Electronic Arts said the acquisition by a consortium including Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners has received the necessary regulatory clearances. The transaction is now expected to close next week, a significant catalyst for shareholders. Electronic Arts says all regulatory approvals for its sale have been completed
• Positive Sentiment: Deal certainty supports the stock: Multiple reports say EA’s $55 billion sale is on track to close next week. With the transaction nearing completion, investors have greater visibility into receiving the agreed consideration, although upside may be limited as the market price approaches the deal value. Electronic Arts Set to Close $55 Billion Go-Private Deal Next Week
• Neutral Sentiment: Insider share sale: EA’s chief people officer sold 1,200 shares as the company prepares to go private. The transaction is relatively small and is unlikely to materially change the investment case. Electronic Arts’ Chief People Officer Sells 1,200 Shares
• Negative Sentiment: Executive pay and layoffs draw criticism: Reports that CEO Andrew Wilson received approximately $38.7 million in compensation while EA cut developers have created negative publicity and governance concerns. The criticism may weigh on sentiment, though its effect on the stock is likely limited while the merger remains the dominant driver. Amid layoffs, EA CEO earned $38.7 million

Insiders Place Their Bets

In related news, EVP Jacob J. Schatz sold 5,000 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $201.19, for a total transaction of $1,005,950.00. Following the sale, the executive vice president directly owned 42,287 shares of the company’s stock, valued at $8,507,721.53. This trade represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew Wilson sold 5,066 shares of Electronic Arts stock in a transaction dated 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 completion of 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. Insiders sold a total of 31,206 shares of company stock worth $6,292,058 in the last three months. Corporate insiders own 0.24% of the company’s stock.

Wall Street Analyst Weigh In

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

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Electronic Arts Trading Up 0.3%

Shares of NASDAQ EA opened at $209.59 on Friday. The firm’s 50 day moving average price is $204.85 and its 200-day moving average price is $202.93. Electronic Arts Inc. has a 52-week low of $151.50 and a 52-week high of $209.80. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market cap of $52.90 billion, a PE ratio of 60.05, a P/E/G ratio of 2.34 and a beta of 0.64.

About Electronic Arts

(Free Report)

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.

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