Electronic Arts Inc. (NASDAQ: EA) – Notable Electronic Arts Insider Sells $ 480.82,000
Blake J. Jorgensen, COO and CFO at Electronic arts (NASDAQ: EA), made a big insider sale on September 8, according to a new SEC filing.
What happened: On Wednesday, a Form 4 filed by the United States Securities and Exchange Commission showed that Jorgensen had sold 3,315 shares of Electronic arts priced at $ 145.88 per share. The total transaction was $ 480,819.
Following the transaction, Jorgensen still owns 73,744 shares of Electronic arts valued at $ 10,439,200.
Electronic arts the shares are trading down 0.53% to $ 141.56 as of this writing on Friday morning.
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Why Insider Trading Matters
Insider trading should not be used primarily in making an investment decision, but an insider trading can be a big factor in the decision to invest.
In legal terms, an “insider” refers to any shareholder who owns at least 10% of a company. This can include senior executives and large hedge funds. These insiders are required to notify the public of their transactions via a Form 4, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, it indicates that they expect the stock to rise.
Insider selling, on the other hand, can be done for a variety of reasons and doesn’t necessarily mean the seller thinks the stock is going to go down.
Important transaction codes
Investors prefer to focus on transactions that take place in the open market, shown in Table I of Form 4 filing. A P in box 3 indicates a purchase, while S indicates a sale. Transaction code VS indicates the conversion of an option, and the transaction code A indicates that the insider may have been forced to sell shares in order to receive compensation that was promised to him when he was hired by the company.
Check out the full list of Electronic Arts Insider Trading.