Andrew Wilson, Chairman and CEO of Electronic Arts Inc . (NASDAQ:EA), recently sold a significant portion of his shares in the company, according to a filing with the Securities and Exchange Commission. The transactions, which took place on January 21, 2025, involved the sale of 5,000 shares of common stock, generating a total of $713,399. The shares were sold at prices ranging from $141.31 to $143.42. According to InvestingPro data, EA currently trades near $142.35, with analyst targets ranging from $144 to $183, suggesting potential upside despite the insider sale.
Wilson's sales were executed under a 10b5-1 trading plan established in August 2024, which allows insiders to set up a predetermined plan for selling stocks. Following these transactions, Wilson holds 42,615 shares indirectly through the Wilson Family Trust. The shares are held in trust for Wilson's descendants, with Wilson maintaining investment control over the trust. EA maintains a strong financial health score of "GOOD" on InvestingPro, with notably low price volatility and robust cash flow metrics. For deeper insights into EA's valuation and financial health, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Electronic Arts (EA) has adjusted its fiscal year 2025 outlook, anticipating a mid-single-digit decline in live services net bookings. This comes after a slowdown in the Global Football franchise and the underperformance of Dragon Age, which engaged around 1.5 million players, falling short of expectations. Despite these developments, EA maintains robust fundamentals with a healthy gross profit margin of 78.6%. For its third fiscal quarter, EA anticipates net bookings of approximately $2.215 billion and GAAP net revenue of about $1.883 billion.
In response to these developments, several financial firms have adjusted their outlooks on EA. Oppenheimer maintained an Outperform rating but reduced the price target to $165, citing a potential negative investor sentiment trend. Stifel revised its outlook, reducing the price target to $159 and maintaining a Hold rating due to performance concerns. Meanwhile, Benchmark analysts kept a Buy rating, with a $163 price target, ahead of EA's third fiscal quarter 2025 results.
These recent adjustments and revisions reflect the current financial landscape for EA, highlighting the importance of the upcoming earnings report for a clearer picture of the company's performance.
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