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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He is on his way out.....
Impressive. That's a lot of stock I bet.
I guess he's just playing smart, considering how badly EA has been doing as of late.
If he were a less morally obligated individual this could mean that he won't try as hard to succeed, as there is much less at stake for him now. That's the way I see it anyway, I'm no business analyst.
Seems fishy to me
If he's smart enough to sell his shares in EA then hopefully he's smart enough to change Origin.
That's a big middle finger to your coworkers.
When somebody sells all of their shares, doesn't the company automatically start to lose money based solely on the other shareholders' perceptions of this act?
'I needed some spare change.'
I say perfect timing. Deal with Disney. Their choice for lagging sports and game support for the WiiU, this could be the high point for EA for awhile.
Not exactly the best move to do if one wants to inspire investor confidence, but I suppose investors are too focused on thinking of that sweet, sweet Star Wars cash potential to care about anything else....
This smells rotten to me.