Electronic Arts (NASDAQ:EA) Sees Unusually-High Trading Volume After Dividend Announcement

Shares of Electronic Arts Inc. (NASDAQ:EA) saw unusually-strong trading volume on Wednesday following a dividend announcement from the company. Approximately 3,307,096 shares were traded during mid-day trading, an increase of 52% from the previous session’s volume of 2,179,993 shares.The stock last traded at $200.3520 and had previously closed at $201.39.

The newly announced dividend which will be paid on Wednesday, March 18th. Investors of record on Wednesday, February 25th will be given a $0.19 dividend. The ex-dividend date is Wednesday, February 25th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.4%. Electronic Arts’s dividend payout ratio (DPR) is presently 22.22%.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Citigroup dropped their price target on Electronic Arts from $207.00 to $202.00 and set a “neutral” rating for the company in a research note on Wednesday. UBS Group reissued a “neutral” rating on shares of Electronic Arts in a report on Wednesday. Benchmark reaffirmed a “buy” rating on shares of Electronic Arts in a report on Wednesday, October 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of Electronic Arts in a research report on Wednesday, October 8th. Finally, Argus set a $210.00 price objective on shares of Electronic Arts in a research note on Thursday, October 30th. Four equities research analysts have rated the stock with a Buy rating, twenty have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Electronic Arts has an average rating of “Hold” and a consensus target price of $186.95.

Electronic Arts Stock Down 2.3%

The company has a market capitalization of $49.23 billion, a P/E ratio of 74.00, a price-to-earnings-growth ratio of 2.43 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. The firm’s fifty day moving average is $203.77 and its 200-day moving average is $190.26.

Electronic Arts News Summary

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

• Positive Sentiment: Record net bookings and blockbuster game launch — EA reported record net bookings of about $3.05B in Q3, led by strong sales and engagement for Battlefield 6, which is driving the company’s revenue recovery. Electronic Arts posts strong Q3 revenue as ‘Battlefield 6′ tops sales
• Positive Sentiment: Quarter beat revenue/bookings estimates — Revenue and bookings beat Street expectations (revenue ~ $3.05B, bookings +38% YoY), a key fundamental positive that supports longer-term monetization from big franchises. EA beats quarterly bookings estimates powered by new ‘Battlefield’ game
• Positive Sentiment: EPS and earnings metrics showed improvement year-over-year, with headlines noting an EPS beat vs. consensus — supportive for investor confidence in recurring revenue and live services. Electronic Arts (EA) Beats Q3 Earnings and Revenue Estimates
• Neutral Sentiment: Quarterly dividend declared (quarterly $0.19; ex-dividend Feb 25) — a small yield but signals capital-return discipline. EA Q3 press release / financials
• Neutral Sentiment: Analyst holds with varied targets — TD Cowen reiterated a Hold ($210 PT), reflecting cautious views on costs and visibility; these mixed analyst stances keep guidance uncertain. TD Cowen Hold rating commentary
• Negative Sentiment: Profit and margins under pressure — operating costs rose and quarterly operating profit fell despite higher revenue, which raises near-term margin concerns. WSJ: EA’s Third-Quarter Profit Falls, Despite Higher Revenue
• Negative Sentiment: Analyst price-target cut — Citi trimmed its PT from $207 to $202 and set a Neutral rating, trimming upside in some models and contributing to downside sentiment. Benzinga: Citi lowers price target
• Negative Sentiment: Takeover / visibility uncertainty and product retirements — Ongoing takeover talk and a changing release/shutdown schedule for some older EA titles add execution risk and make near-term visibility murky. Investing.com: Takeover reshapes outlook MSN: EA games shutting down

Insider Buying and Selling

In other Electronic Arts news, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $204.11, for a total value of $1,020,550.00. Following the completion of the transaction, the chief executive officer directly owned 43,858 shares in the company, valued at approximately $8,951,856.38. This trade represents a 10.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jeff Huber sold 79,381 shares of Electronic Arts stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $201.17, for a total value of $15,969,075.77. The SEC filing for this sale provides additional information. Insiders sold 123,769 shares of company stock worth $24,943,734 in the last ninety days. Insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Electronic Arts

A number of hedge funds have recently made changes to their positions in the stock. Catalyst Financial Partners LLC increased its position in Electronic Arts by 46.1% during the 4th quarter. Catalyst Financial Partners LLC now owns 1,711 shares of the game software company’s stock valued at $350,000 after purchasing an additional 540 shares during the period. Independent Advisor Alliance increased its position in shares of Electronic Arts by 6.0% during the fourth quarter. Independent Advisor Alliance now owns 7,877 shares of the game software company’s stock worth $1,610,000 after buying an additional 445 shares during the period. Legacy Financial Advisors Inc. raised its stake in Electronic Arts by 17.6% during the fourth quarter. Legacy Financial Advisors Inc. now owns 1,641 shares of the game software company’s stock worth $335,000 after buying an additional 246 shares during the last quarter. Versor Investments LP lifted its holdings in Electronic Arts by 2,821.3% in the fourth quarter. Versor Investments LP now owns 63,129 shares of the game software company’s stock valued at $12,899,000 after buying an additional 60,968 shares during the period. Finally, Bailard Inc. boosted its position in Electronic Arts by 11.6% during the fourth quarter. Bailard Inc. now owns 8,727 shares of the game software company’s stock valued at $1,783,000 after acquiring an additional 906 shares during the last quarter. 90.23% of the stock is currently owned by institutional investors.

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.