Electronic Arts Inc. (NASDAQ:EA) Announces Dividend Increase – $0.19 Per Share

Electronic Arts Inc. (NASDAQ:EAGet Rating) announced a quarterly dividend on Tuesday, May 10th, RTT News reports. Stockholders of record on Wednesday, June 8th will be paid a dividend of 0.19 per share by the game software company on Wednesday, June 22nd. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.61%. This is a boost from Electronic Arts’s previous quarterly dividend of $0.17.

Electronic Arts has a payout ratio of 9.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Electronic Arts to earn $5.75 per share next year, which means the company should continue to be able to cover its $0.68 annual dividend with an expected future payout ratio of 11.8%.

Shares of EA traded up $12.54 during trading hours on Wednesday, reaching $124.14. 144,788 shares of the company traded hands, compared to its average volume of 2,289,002. The firm has a market cap of $34.91 billion, a price-to-earnings ratio of 55.15, a PEG ratio of 1.51 and a beta of 0.83. Electronic Arts has a 12-month low of $109.24 and a 12-month high of $148.93. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 0.25. The stock’s fifty day moving average price is $123.71 and its 200 day moving average price is $129.59.

Electronic Arts (NASDAQ:EAGet Rating) last issued its earnings results on Tuesday, May 10th. The game software company reported $0.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.63). Electronic Arts had a net margin of 9.83% and a return on equity of 18.59%. The company had revenue of $1.75 billion for the quarter, compared to analysts’ expectations of $1.77 billion. During the same period in the prior year, the firm posted $0.72 earnings per share. The firm’s revenue for the quarter was up 17.5% compared to the same quarter last year. On average, research analysts forecast that Electronic Arts will post 5.42 earnings per share for the current year.

In other Electronic Arts news, insider Vijayanthimala Singh sold 800 shares of the firm’s stock in a transaction on Monday, May 2nd. The stock was sold at an average price of $118.75, for a total value of $95,000.00. Following the transaction, the insider now owns 19,517 shares in the company, valued at approximately $2,317,643.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Laura Miele sold 3,100 shares of the firm’s stock in a transaction on Tuesday, March 1st. The shares were sold at an average price of $128.75, for a total value of $399,125.00. The disclosure for this sale can be found here. Insiders have sold a total of 44,700 shares of company stock worth $5,647,859 in the last quarter. Insiders own 0.65% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the business. Peapack Gladstone Financial Corp increased its position in shares of Electronic Arts by 2.5% during the 4th quarter. Peapack Gladstone Financial Corp now owns 3,538 shares of the game software company’s stock worth $467,000 after purchasing an additional 87 shares during the last quarter. EP Wealth Advisors LLC increased its position in shares of Electronic Arts by 8.7% during the 4th quarter. EP Wealth Advisors LLC now owns 1,560 shares of the game software company’s stock worth $206,000 after purchasing an additional 125 shares during the last quarter. Horizon Investments LLC increased its position in shares of Electronic Arts by 8.5% during the 4th quarter. Horizon Investments LLC now owns 2,119 shares of the game software company’s stock worth $279,000 after purchasing an additional 166 shares during the last quarter. Penserra Capital Management LLC increased its position in shares of Electronic Arts by 19.3% during the 4th quarter. Penserra Capital Management LLC now owns 1,460 shares of the game software company’s stock worth $191,000 after purchasing an additional 236 shares during the last quarter. Finally, JustInvest LLC increased its position in shares of Electronic Arts by 6.6% during the 4th quarter. JustInvest LLC now owns 4,849 shares of the game software company’s stock worth $640,000 after purchasing an additional 301 shares during the last quarter. 89.28% of the stock is owned by institutional investors and hedge funds.

A number of analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Electronic Arts from $170.00 to $165.00 in a research note on Wednesday. Atlantic Securities raised shares of Electronic Arts from a “neutral” rating to an “overweight” rating and set a $160.00 price objective for the company in a research note on Wednesday, January 19th. Morgan Stanley decreased their price target on shares of Electronic Arts from $155.00 to $150.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 19th. Wedbush decreased their price target on shares of Electronic Arts from $180.00 to $164.00 in a research report on Wednesday. Finally, MKM Partners decreased their price target on shares of Electronic Arts from $172.00 to $162.00 and set a “buy” rating for the company in a research report on Wednesday, February 2nd. Five investment analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Electronic Arts currently has an average rating of “Buy” and an average price target of $157.24.

Electronic Arts Company Profile (Get Rating)

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 Plants vs.

Further Reading

Dividend History for Electronic Arts (NASDAQ:EA)

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