Trade Alert: The Independent Lead Director Of Electronic Arts Inc. (NASDAQ:EA), Luis Ubinas, Has Sold Some Shares Recently

Anyone interested in Electronic Arts Inc. (NASDAQ:EA) should probably be aware that the Independent Lead Director, Luis Ubinas, recently divested US$249k worth of shares in the company, at an average price of US$141 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Electronic Arts

Electronic Arts Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Jay Hoag, sold US$13m worth of shares at a price of US$147 per share. So what is clear is that an insider saw fit to sell at around the current price of US$145. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Electronic Arts didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Electronic Arts better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Electronic Arts

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Electronic Arts insiders own about US$195m worth of shares (which is 0.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Electronic Arts Insider Transactions Indicate?

An insider sold Electronic Arts shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Electronic Arts and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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