Is Electronic Arts Inc. (NASDAQ:EA) a buy?
In the financial world, there are dozens of methods shareholders can use to watch their holdings. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can beat the broader indices by a solid amount (see just how much).
Just as useful, bullish insider trading sentiment is a second way to analyze the financial markets. Obviously, there are a number of motivations for an insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this tactic if shareholders understand what to do (learn more here).
Furthermore, we’re going to examine the recent info surrounding Electronic Arts Inc. (NASDAQ:EA).
How have hedgies been trading Electronic Arts Inc. (NASDAQ:EA)?
At Q2’s end, a total of 37 of the hedge funds we track were bullish in this stock, a change of 12% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes considerably.
According to our 13F database, Larry Robbins’s Glenview Capital had the largest position in Electronic Arts Inc. (NASDAQ:EA), worth close to $212.3 million, comprising 1.9% of its total 13F portfolio. On Glenview Capital’s heels is Michael Kaufman of MAK Capital One, with a $92.5 million position; the fund has 22% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Alexander Mitchell’s Scopus Asset Management and D. E. Shaw’s D E Shaw.
As aggregate interest spiked, specific money managers were breaking ground themselves. Glenview Capital, managed by Larry Robbins, established the most outsized position in Electronic Arts Inc. (NASDAQ:EA). Glenview Capital had 212.3 million invested in the company at the end of the quarter. Michael Kaufman’s MAK Capital One also initiated a $92.5 million position during the quarter. The following funds were also among the new EA investors: Jim Simons’s Renaissance Technologies, Alexander Mitchell’s Scopus Asset Management, and D. E. Shaw’s D E Shaw.
What do corporate executives and insiders think about Electronic Arts Inc. (NASDAQ:EA)?
Insider buying made by high-level executives is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time period, Electronic Arts Inc. (NASDAQ:EA) has seen zero unique insiders buying, and 9 insider sales (see the details of insider trades here).
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| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cornerstone OnDemand, Inc. (NASDAQ:CSOD) | 18 | 0 | 10 |
| Activision Blizzard, Inc. (NASDAQ:ATVI) | 35 | 0 | 5 |
| Rovi Corporation (NASDAQ:ROVI) | 22 | 0 | 4 |
| 0 | 0 | ||
| International Game Technology (NYSE:IGT) | 31 | 0 | 2 |
Using the results demonstrated by Insider Monkey’s studies, average investors must always pay attention to hedge fund and insider trading activity, and Electronic Arts Inc. (NASDAQ:EA) applies perfectly to this mantra.
