Federated Hermes Inc. Cuts Stake in Electronic Arts Inc. $EA

Federated Hermes Inc. lessened its holdings in shares of Electronic Arts Inc. (NASDAQ:EA) by 96.1% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 4,181 shares of the game software company’s stock after selling 101,836 shares during the quarter. Federated Hermes Inc.’s holdings in Electronic Arts were worth $843,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Salomon & Ludwin LLC raised its position in shares of Electronic Arts by 70.1% during the second quarter. Salomon & Ludwin LLC now owns 165 shares of the game software company’s stock valued at $26,000 after buying an additional 68 shares during the last quarter. MTM Investment Management LLC purchased a new position in Electronic Arts during the second quarter valued at $30,000. Frazier Financial Advisors LLC grew its stake in Electronic Arts by 328.9% during the second quarter. Frazier Financial Advisors LLC now owns 193 shares of the game software company’s stock valued at $31,000 after acquiring an additional 148 shares in the last quarter. NewSquare Capital LLC increased its holdings in Electronic Arts by 67.5% in the 2nd quarter. NewSquare Capital LLC now owns 196 shares of the game software company’s stock valued at $31,000 after acquiring an additional 79 shares during the last quarter. Finally, E Fund Management Hong Kong Co. Ltd. lifted its stake in Electronic Arts by 131.9% in the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 167 shares of the game software company’s stock worth $34,000 after purchasing an additional 95 shares in the last quarter. 90.23% of the stock is currently owned by institutional investors.

Electronic Arts Stock Performance

NASDAQ EA opened at $200.00 on Friday. The business’s 50 day moving average price is $203.65 and its 200-day moving average price is $190.64. Electronic Arts Inc. has a fifty-two week low of $127.24 and a fifty-two week high of $204.88. The company has a market cap of $50.05 billion, a P/E ratio of 75.19, a P/E/G ratio of 2.38 and a beta of 0.74. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.84 and a current ratio of 0.93.

Electronic Arts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 18th. Stockholders of record on Wednesday, February 25th will be paid a $0.19 dividend. The ex-dividend date of this dividend is Wednesday, February 25th. This represents a $0.76 annualized dividend and a dividend yield of 0.4%. Electronic Arts’s dividend payout ratio is currently 28.57%.

Key Headlines Impacting Electronic Arts

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

• Positive Sentiment: Q3 revenue beat and management said Battlefield 6 drove record bookings, supporting near-term topline strength. Electronic Arts beats revenue estimates as Battlefield 6 drives record bookings
• Positive Sentiment: Battlefield 6 set new franchise engagement and sales records, underpinning higher monetization and player engagement metrics. Battlefield 6 sets ‘new franchise engagement records’ for EA
• Positive Sentiment: EA announced a dividend that coincided with elevated trading volume — a liquidity/event-driven catalyst that can lift the stock. Electronic Arts (NASDAQ:EA) Sees Strong Trading Volume After Dividend Announcement
• Positive Sentiment: Analysis suggests ~5% upside from merger-arbitrage positioning, which may attract event-driven buyers. Electronic Arts: 5% Upside From Merger Arbitrage
• Neutral Sentiment: EA struck a multi-year partnership with Stability AI to explore generative AI tools — strategically interesting but execution- and timing-dependent for material near-term revenue impact. Electronic Arts partners with Stability AI to explore generative AI tools
• Neutral Sentiment: Street consensus on EA is an average “Hold,” signaling limited analyst conviction to push the stock substantially higher absent follow-through. Electronic Arts Inc. (NASDAQ:EA) Receives Average Rating of “Hold” from Analysts
• Neutral Sentiment: Small insider option exercises were reported (minimal dollar amounts), a routine disclosure with negligible market impact. Notable Insider Move: Talbott Roche Hoskins Takes Part In Options Exercise At Electronic Arts, Resulting In $-651
• Negative Sentiment: Citigroup lowered its expectations for EA’s stock price, a direct negative signal from a major bank that can pressure sentiment. Citigroup Has Lowered Expectations for Electronic Arts (NASDAQ:EA) Stock Price
• Negative Sentiment: Analysts and filings flagged elevated risk and a higher cost of capital tied to uncertainty around the PIF-led merger, which could weigh on valuation multiples. Electronic Arts Faces Elevated Risk and Cost of Capital Amid Uncertain 2025 PIF-Led Merger
• Negative Sentiment: Despite revenue strength, EA reported a Q3 profit decline and some reports noted misses on headline EPS — mixed fundamentals that cap upside until margins/stability improve. EA’s Third-Quarter Profit Falls, Despite Higher Revenue
• Negative Sentiment: Valuation pieces highlight long-term outperformance and potential overvaluation concerns — a reminder of premium multiples (high P/E) that could amplify downside on any growth miss. A Look At Electronic Arts (EA) Valuation After Strong Long Term Returns And Overvaluation Concerns

Insider Transactions at Electronic Arts

In related news, insider Laura Miele sold 2,500 shares of Electronic Arts stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $204.27, for a total transaction of $510,675.00. Following the completion of the transaction, the insider directly owned 50,648 shares of the company’s stock, valued at approximately $10,345,866.96. The trade was a 4.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $204.26, for a total transaction of $1,021,300.00. Following the completion of the sale, the chief executive officer directly owned 38,858 shares in the company, valued at $7,937,135.08. This trade represents a 11.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 123,769 shares of company stock worth $24,943,734. 0.24% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Benchmark restated a “buy” rating on shares of Electronic Arts in a research report on Wednesday, October 29th. Citigroup cut their price target on Electronic Arts from $207.00 to $202.00 and set a “neutral” rating for the company in a report on Wednesday. UBS Group reaffirmed a “neutral” rating on shares of Electronic Arts in a report on Wednesday. Zacks Research lowered shares of Electronic Arts from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Finally, Morgan Stanley upped their price target on shares of Electronic Arts from $148.00 to $210.00 and gave the company an “equal weight” rating in a research note on Monday, October 20th. Four research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $186.95.

About Electronic Arts

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.