Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In Electronic Arts Inc. (NASDAQ:EA)

Anyone interested in Electronic Arts Inc. (NASDAQ:EA) should probably be aware that the Independent Director, Leonard Coleman, recently divested US$332k worth of shares in the company, at an average price of US$111 each. On the bright side, that sale was only 8.0% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Electronic Arts

The Last 12 Months Of Insider Transactions At Electronic Arts

Notably, that recent sale by Leonard Coleman is the biggest insider sale of Electronic Arts shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$110. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Electronic Arts insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:EA Recent Insider Trading, February 13th 2020
NasdaqGS:EA Recent Insider Trading, February 13th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Electronic Arts Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Electronic Arts insiders own 0.5% of the company, worth about US$162m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Electronic Arts Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. But it is good to see that Electronic Arts is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

About NasdaqGS:EA

Electronic Arts

Develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide.

Adequate balance sheet with moderate growth potential.

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