Jacob J. Schatz, Executive Vice President of Global Affairs and Chief Legal Officer at Electronic Arts Inc . (NASDAQ:EA), has sold 1,500 shares of the company. The shares were sold at a price of $143.45 each, amounting to a total transaction value of $215,174. The transaction occurred as EA, with its $37.1 billion market cap, trades near its 52-week range of $124.92 to $168.50. According to InvestingPro analysis, the stock is currently slightly undervalued.
Following this sale, Schatz holds 23,386 shares in the company. The transaction was conducted under a pre-established 10b5-1 trading plan, which Schatz set up on May 29, 2024. These plans allow insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential accusations of insider trading. InvestingPro data shows EA maintains a GOOD overall financial health score, with notably low price volatility and strong cash flow metrics. Discover more insights and 10+ additional ProTips with an InvestingPro subscription.
In other recent news, Electronic Arts (EA) reported record-breaking net bookings of $2.08 billion in the second quarter of fiscal year 2025, a 14% increase from the previous year, primarily driven by the success of EA's sports franchises. Following these robust results, EA has elevated its full-year guidance. Benchmark analysts maintained a Buy rating on EA shares, citing potential growth in net bookings, operating income, margins, and Adjusted Earnings Per Share (AEPS) as the company's game pipeline develops and potential cost savings from Artificial Intelligence (AI) are realized. However, Benchmark signaled concerns for the third quarter, suggesting there may be downside risk compared to earlier expectations, which included the new Dragon Age release and declining frontline sales of EA Sports FC 25.
Stifel, a financial services company, downgraded EA's stock from Buy to Hold, revising its price target for the video game company to $167.00, despite a continued positive stance on EA's fundamentals in the intermediate and longer term. On the other hand, Citi maintained a Neutral rating on EA but raised the price target from $162.00 to $163.00 in light of the strong results.
EA is also undertaking strategic initiatives to enhance online communities and leverage generative AI, with plans to expand The Sims as a platform and collaborate with Amazon (NASDAQ:AMZN) MGM Studios for a film adaptation. The company's CEO, Andrew Wilson, expressed confidence in the breakout potential of the upcoming title "Veilguard." These recent developments reflect EA's strategic journey and commitment to innovation.
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