The lights are on
[Update] A second EA executive, senior vice president and general counsel Stephen Bene, has dropped a number of EA shares. Today, Bene sold derivative securities (vested options) for 25,000 shares at a value of $16.06 ($401,500) and then immediately sold those same shares at a market value of $22.40, for a net gain of $158,500.
Sales of stock by senior corporate officers require immediate disclosures and can be interpreted as a lack of confidence. Both of these came in after the close of business on a Friday, likely to minimize damage to the company with the weekend available as a cooling off period. Share value is very slightly down in after hours trading ($.01 or .04 percent, at a price of $22.47).
In an SEC filing submitted yesterday, EA disclosed that Andrew Wilson has sold the entirety of his stock holdings. This move comes after significant gains in the share value signaled by aggressive projections for fiscal year 2014, including flat operating expenses.
The filing indicates a share price of $21.4245 when Wilson sold, which puts the gross sale of his 32,085 shares at $687,405.08. EA reported earlier this week that 10 percent of its global workforce had been laid off in restructuring efforts. Stock prices were bolstered due to optimistic forward-looking statements and the recent announcement that EA had secured an exclusive multi-year license to produce Star Wars titles.
According to an EA representative, Wilson continues to serve both as the executive vice president of EA Sports and, as of two weeks ago, the lead of the Origin service.
[Source: EA via GameSpot]
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Still think the next gen systems are gonna sell good when they release? If someone in a company like EA, which always makes money regardless of the state of the economy, dumps stock like this it is a sign of bad times ahead. Next Gen xbox and ps4 game budgets are going to e huge, causing publishers and developers to make less in return. While companies are hesitant to support the Wii U right now, I think they will be forced to do an about-face once the dust settles a little from the release of the new systems. It will be interesting to see how this all plays out. EA has been resting on their laurels for far too long, content to release yearly updates to every series possible. That wont work next gen. No more excuses for lazy ports and crappy porgramming. They will also noit get away with releasing sub-standard, feature-lacking ports on the new systems.
I really hope that in a few years, this would make for a great story for a movie that an older Jim Carry would star.
please make that happen EA!
well that can't be good.
Hmm, cashing in are we?
Development costs are about to shoot up and returns will drop its not rocket science.
THAT CAN'T BE GOOD.
Hmmmm.... this is usually not a very good sign.
But with the recent Star Wars deal...
Generally a terrible sign of things to come. With two major Presidents unloading I would expect massive cutbacks across the board from EA with studios like PopCap being minimized and only full staff at groups like DICE, Criterion and BioWare.
Well....I guess no star wars games for a really long time.
At the very least it seems like some shady insider trading business
Ah, good ol' insider trading. Hurray for corporate culture. Surely they'll donate that money to help the 10 percent of their former employees that won't know where their next meal is coming from soon.
Wonder if this has anything to do with SimCity 5 only selling at ~200,000 units per month since launch. They had to be expecting a lot more sales each month on a worldwide IP release like this one, regardless of their shareholder spin.
Maybe the stock was up and these guys just decided to unload and all is well at EA. My better judgment says not likely though.