Jacob J. Schatz, Executive Vice President, Global Affairs and Chief Legal Officer at Electronic Arts Inc . (NASDAQ:EA), recently sold a portion of his holdings in the company. According to an SEC filing, Schatz sold a total of 1,500 shares of common stock on December 16, 2024. The transaction comes as EA, currently valued at $40.5 billion, trades near its InvestingPro Fair Value, with the company maintaining a GOOD financial health score and strong balance sheet position. The shares were sold at prices ranging from $155.60 to $156.76, resulting in a total transaction value of approximately $234,408.
These sales were conducted under a 10b5-1 trading plan that Schatz established on May 29, 2024. Following these transactions, Schatz retains direct ownership of 24,886 shares in Electronic Arts.
In other recent news, Electronic Arts (EA) reported record-breaking financial results for the second fiscal quarter of 2025 (F2Q25), surpassing Wall Street's expectations. The company's net bookings reached $2.08 billion, a 14% increase from the previous year, primarily driven by its sports franchises. These robust results prompted EA to raise its full-year guidance for both net bookings and non-GAAP EPS.
Following these developments, Citi maintained a Neutral rating on EA but slightly increased the price target from $162.00 to $163.00. The new price target is based on approximately 19 times the firm's fiscal year 2026 non-GAAP EPS estimate, combined with an estimated $6 of net cash per share.
EA also announced strategic initiatives to enhance online communities and leverage generative AI. Player engagement has seen substantial growth, with the number of American Football players more than doubling and total hours played increasing by over 140%. However, the monetization of Apex Legends did not meet the company's expectations.
Looking ahead, EA anticipates continued growth with a Q3 net bookings forecast of $2.4 billion to $2.55 billion. The company plans to expand The Sims as a platform and collaborate with Amazon (NASDAQ:AMZN) MGM Studios for a film adaptation. EA's CEO, Andrew Wilson, expressed confidence in the breakout potential of the upcoming title "Veilguard." These are among the recent developments in EA's strategic journey.
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