Fintel reports that on December 12, 2023, Wolfe Research initiated coverage of Electronic Arts (NASDAQ:EA) with a Peer Perform recommendation.
Analyst Price Forecast Suggests 6.54% Upside
As of November 27, 2023, the average one-year price target for Electronic Arts is 149.51. The forecasts range from a low of 129.28 to a high of $170.10. The average price target represents an increase of 6.54% from its latest reported closing price of 140.34.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Electronic Arts is 8,505MM, an increase of 12.01%. The projected annual non-GAAP EPS is 8.09.
Electronic Arts Declares $0.19 Dividend
On November 1, 2023 the company declared a regular quarterly dividend of $0.19 per share ($0.76 annualized). Shareholders of record as of November 29, 2023 will receive the payment on December 20, 2023. Previously, the company paid $0.19 per share.
At the current share price of $140.34 / share, the stock's dividend yield is 0.54%.
Looking back five years and taking a sample every week, the average dividend yield has been 0.63%, the lowest has been 0.46%, and the highest has been 1.02%. The standard deviation of yields is 0.12 (n=236).
The current dividend yield is 0.74 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.21. 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.
The company's 3-Year dividend growth rate is 0.12%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1914 funds or institutions reporting positions in Electronic Arts. This is an increase of 27 owner(s) or 1.43% in the last quarter. Average portfolio weight of all funds dedicated to EA is 0.32%, a decrease of 0.68%. Total shares owned by institutions decreased in the last three months by 3.75% to 269,348K shares. 
The put/call ratio of EA is 1.09, indicating a bearish outlook.
What are Other Shareholders Doing?
Public Investment Fund holds 24,808K shares representing 9.22% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,432K shares representing 3.13% ownership of the company. In it's prior filing, the firm reported owning 8,500K shares, representing a decrease of 0.80%. The firm decreased its portfolio allocation in EA by 4.42% over the last quarter.
Amundi holds 6,084K shares representing 2.26% ownership of the company. In it's prior filing, the firm reported owning 5,924K shares, representing an increase of 2.62%. The firm decreased its portfolio allocation in EA by 94.02% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 5,923K shares representing 2.20% ownership of the company. In it's prior filing, the firm reported owning 6,203K shares, representing a decrease of 4.71%. The firm decreased its portfolio allocation in EA by 9.23% over the last quarter.
Geode Capital Management holds 5,807K shares representing 2.16% ownership of the company. In it's prior filing, the firm reported owning 5,937K shares, representing a decrease of 2.23%. The firm decreased its portfolio allocation in EA by 7.92% over the last quarter.
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™.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
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.
