Traders Purchase High Volume of Electronic Arts Put Options (EA)

Electronic Arts Inc. (NASDAQ:EA) saw unusually large options trading activity on Friday. Traders bought 325 put options on the stock. This represents an increase of approximately 222% compared to the average daily volume of 101 put options.

In related news, EVP Joel Linzner sold 4,000 shares of the stock in a transaction on Monday, May 1st. The shares were sold at an average price of $94.91, for a total transaction of $379,640.00. Following the completion of the sale, the executive vice president now owns 21,745 shares in the company, valued at approximately $2,063,817.95. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Blake J. Jorgensen sold 10,000 shares of the stock in a transaction on Thursday, July 13th. The stock was sold at an average price of $111.01, for a total transaction of $1,110,100.00. Following the sale, the chief financial officer now owns 219,614 shares of the company’s stock, valued at approximately $24,379,350.14. The disclosure for this sale can be found here. Insiders have sold a total of 444,857 shares of company stock valued at $46,912,661 in the last quarter. 2.55% of the stock is currently owned by company insiders.

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of Electronic Arts by 8.8% in the first quarter. Vanguard Group Inc. now owns 29,631,771 shares of the game software company’s stock worth $2,652,637,000 after buying an additional 2,394,314 shares during the last quarter. BlackRock Inc. boosted its stake in shares of Electronic Arts by 3,420.8% in the first quarter. BlackRock Inc. now owns 20,764,484 shares of the game software company’s stock worth $1,858,837,000 after buying an additional 20,174,721 shares during the last quarter. State Street Corp boosted its stake in shares of Electronic Arts by 2.8% in the first quarter. State Street Corp now owns 11,886,458 shares of the game software company’s stock worth $1,064,069,000 after buying an additional 318,704 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in shares of Electronic Arts by 24.8% in the first quarter. Ameriprise Financial Inc. now owns 9,443,219 shares of the game software company’s stock worth $845,359,000 after buying an additional 1,877,351 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in shares of Electronic Arts by 15.2% in the first quarter. Massachusetts Financial Services Co. MA now owns 8,077,235 shares of the game software company’s stock worth $723,074,000 after buying an additional 1,064,602 shares during the last quarter. 98.26% of the stock is owned by institutional investors and hedge funds.

Shares of Electronic Arts (NASDAQ EA) traded up 0.55% on Friday, reaching $118.25. 5,012,269 shares of the company’s stock were exchanged. The company has a market capitalization of $36.61 billion, a P/E ratio of 31.62 and a beta of 0.70. Electronic Arts has a 12 month low of $73.74 and a 12 month high of $120.25. The firm’s 50 day moving average price is $110.65 and its 200-day moving average price is $96.96.

Electronic Arts (NASDAQ:EA) last announced its quarterly earnings results on Thursday, July 27th. The game software company reported $0.36 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.14 by $0.22. The business had revenue of $775 million during the quarter, compared to analysts’ expectations of $768.47 million. Electronic Arts had a return on equity of 31.26% and a net margin of 23.31%. The firm’s quarterly revenue was up 13.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.07 EPS. On average, equities analysts anticipate that Electronic Arts will post $4.22 EPS for the current year.

Electronic Arts announced that its Board of Directors has approved a stock buyback plan on Tuesday, May 9th that permits the company to repurchase $1.20 billion in shares. This repurchase authorization permits the game software company to buy up to 45% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

A number of brokerages have commented on EA. Oppenheimer Holdings, Inc. set a $130.00 price objective on shares of Electronic Arts and gave the stock a “buy” rating in a research report on Friday. Wedbush restated a “buy” rating on shares of Electronic Arts in a research report on Friday. Jefferies Group LLC set a $135.00 price objective on shares of Electronic Arts and gave the stock a “buy” rating in a research report on Friday. Bank of America Corporation upgraded shares of Electronic Arts from a “neutral” rating to a “buy” rating and set a $131.00 price objective for the company in a research report on Wednesday. Finally, BidaskClub upgraded shares of Electronic Arts from a “hold” rating to a “buy” rating in a research report on Monday, July 24th. One analyst has rated the stock with a sell rating, four have given a hold rating, twenty have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average price target of $110.84.

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Electronic Arts Company Profile

Electronic Arts Inc develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed.

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