On February 1, 2023, B of A Securities downgraded their outlook for Electronic Arts from Buy to Neutral.
Analyst Price Forecast Suggests 29.33% Upside
As of February 2, 2023, the average one-year price target for Electronic Arts is $151.01. The forecasts range from a low of $127.26 to a high of $197.40. The average price target represents an increase of 29.33% from its latest reported closing price of $116.76.
The projected annual revenue for Electronic Arts is $7,978MM, an increase of 8.15%. The projected annual EPS is $7.36, an increase of 97.98%.
Electronic Arts Declares $0.19 Dividend
Electronic Arts said on January 31, 2023 that its board of directors declared a regular quarterly dividend of $0.19 per share ($0.76 annualized). Shareholders of record as of February 28, 2023 will receive the payment on March 22, 2023. Previously, the company paid $0.19 per share.
At the current share price of $116.76 / share, the stock's dividend yield is 0.65%. Looking back five years and taking a sample every week, the average dividend yield has been 0.53%, the lowest has been 0.46%, and the highest has been 0.66%. The standard deviation of yields is 0.05 (n=104).
The current dividend yield is 2.24 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.20. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
What are large shareholders doing?
Public Investment Fund holds 16,011,844 shares representing 5.80% ownership of the company. No change in the last quarter.
Wellington Management Group Llp holds 11,548,254 shares representing 4.18% ownership of the company. In it's prior filing, the firm reported owning 12,390,608 shares, representing a decrease of 7.29%. The firm decreased its portfolio allocation in EA by 6.24% over the last quarter.
Massachusetts Financial Services holds 11,384,876 shares representing 4.12% ownership of the company. In it's prior filing, the firm reported owning 11,493,753 shares, representing a decrease of 0.96%. The firm increased its portfolio allocation in EA by 2.17% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,301,825 shares representing 3.01% ownership of the company. In it's prior filing, the firm reported owning 8,244,976 shares, representing an increase of 0.68%. The firm decreased its portfolio allocation in EA by 0.17% over the last quarter.
Ameriprise Financial holds 7,870,067 shares representing 2.85% ownership of the company. In it's prior filing, the firm reported owning 5,208,043 shares, representing an increase of 33.82%. The firm decreased its portfolio allocation in EA by 71.96% over the last quarter.
Fund Sentiment
There are 1954 funds or institutions reporting positions in Electronic Arts. This is a decrease of 31 owner(s) or 1.56%.
Average portfolio weight of all funds dedicated to US:EA is 0.3608%, an increase of 2.6521%. Total shares owned by institutions decreased in the last three months by 0.65% to 290,017K shares.
Electronic Arts Background Information
(This description is provided by the company.)
Electronic Arts is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. In fiscal year 2020, EA posted GAAP net revenue of $5.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™ and Plants vs. Zombies™.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
