SSgA Funds Management, Inc. recently announced the acquisition of new stake in Electronic Arts Inc. (NASDAQ:EA). The institutional investor has increased its shareholding in the Communication Services company by 5.66% to 14.02 million shares with purchase of 0.75 million shares. This fresh investment now brings its stake to 4.86% valued currently at $1.85 billion. In addition, BlackRock Fund Advisors raised its holdings by 0.21 million to 13.65 million shares. And Massachusetts Financial Services. has lifted its position by 2.26% or 0.24 million shares – to 10.97 million shares.
With over 2.68 million Electronic Arts Inc. (EA) shares trading Thursday and a closing price of $138.59 on the day, the dollar volume was approximately $372.04 million. The shares have shown a positive weekly performance of 2.39% and its price on 07/30/20 gained nearly 1.96%. Currently, there are 290.00M common shares owned by the public and among those 287.53M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 31 analysts who have offered their price forecasts for EA have a consensus price objective of $139.63. The analysts have set the share’s price value over the next 12 months at a high of $155.00 and a low of $120.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Electronic Arts Inc. stock is 2.20 for the next 12 months. The average price target is 0.08% above its last price level and an upside to the estimated low will see the stock lose -15.49% over that period. But an upside of 10.59% will see the stock hit the forecast high price target while mean target price for the stock is $140.00.
Insiders at the company have transacted a total of 369 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 116 of these insider trades were purchases, accounting for 1,445,225 shares. Insider sales of the common stock occurred on 253 occasions, with total insider shares sold totaling 5,041,223 shares.
The top 3 mutual fund holders in Electronic Arts Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and MFS Growth Fund. Vanguard Total Stock Market Index owns 8.22 million shares of the company’s stock, all valued at over $1.09 billion. The company sold -0.2 million shares recently to bring their total holdings to about 2.85% of the shares outstanding. Vanguard 500 Index Fund bought 28146.0 shares to see its total holdings expand to 5.99 million shares valued at over $790.99 million and representing 2.08% of the shares outstanding. MFS Growth Fund bought 0.12 million shares to bring its total holdings to over 3.43 million shares at a value of $453.58 million. MFS Growth Fund now owns shares totaling to 1.19% of the shares outstanding.
Shares of Electronic Arts Inc. (NASDAQ: EA) opened at $135.70, down -$0.23 from a prior closing price of $135.93. However, the script later closed the day at $138.59, up 1.96%. The company’s stock has a 5-day price change of 2.39% and 21.29% over the past three months. EA shares are trading 28.91% year to date (YTD), with the 12-month market performance up to 49.83% higher. It has a 12-month low price of $85.69 and touched a high of $142.31 over the same period. Currently, 2.68 million shares have been traded, compared to an average intraday trading volume of 2.82 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.21%, 7.33%, and 24.78% respectively.
Institutional ownership of Electronic Arts Inc. (NASDAQ: EA) shares accounts for 93.90% of the company’s 290.00M shares outstanding. Mutual fund holders own 38.60%, while other institutional holders and individual stakeholders account for 53.08% and 1.37% respectively.
It has a market capitalization of $40.05B and a beta (3y monthly) value of 0.92. The stock’s trailing 12-month PE ratio is 13.53, while the earnings-per-share (ttm) stands at $10.25. The company has a PEG of 1.10 and a Quick Ratio of 2.40 with the debt-to-equity ratio at 0.13. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.97% over the week and 2.44% over the month.
Analysts forecast that Electronic Arts Inc. (EA) will achieve an EPS of $0.79 for the current quarter, $0.9 for the next quarter and $5.74 for 2022. The lowest estimate earnings-per-share for the quarter is $0.7 while analysts give the company a high EPS estimate of $1.1. Comparatively, EPS for the current quarter was $0.25 a year ago. Earnings per share for the fiscal year are expected to increase by 209.40%, and 13.48% over the next financial year. EPS should shrink at an annualized rate of 12.33% over the next five years, compared to 30.80% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 31 brokerage firm advisors rate Electronic Arts Inc. (EA) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 16 Wall Street analysts polled rate the stock as a buy, while 11 of the 31 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the EA, a number of firms have released research notes about the stock. Stifel stated their Buy rating for the stock in a research note on July 21, 2020, with the firm’s price target at $130-$154. Oppenheimer coverage for the Electronic Arts Inc. (EA) stock in a research note released on July 07, 2020 offered a Outperform rating with a price target of $150. Needham was of a view on June 26, 2020 that the stock is Buy, while MKM Partners gave the stock Buy rating on June 23, 2020, issuing a price target of $130- $144. The Benchmark Company on their part issued Buy rating on June 22, 2020.