The stock price of Electronic Arts, Inc. (NASDAQ: EA) has jumped by 0.61 compared to previous close of 133.70. Despite this, the company has seen a gain of 1.39% in its stock price over the last five trading days. Zacks Investment Research reported 2023-11-15 that Inflation is declining steadily and with the holiday season around the corner stocks like DraftKings (DKNG), Electronic Arts (EA), Hilton Worldwide Holdings (HLT), Royal Caribbean Cruises (RCL) and Skechers U.S.A. (SKX) are likely to benefit.
Is It Worth Investing in Electronic Arts, Inc. (NASDAQ: EA) Right Now?
Electronic Arts, Inc. (NASDAQ: EA) has a price-to-earnings ratio that is above its average at 37.12x. and a 36-month beta value of 0.81. Opinions on the stock are mixed, with 13 analysts rating it as a “buy,” 4 as “overweight,” 10 as “hold,” and 0 as “sell.”
The average price predicted for Electronic Arts, Inc. (EA) by analysts is $145.70, which is $11.18 above the current market price. The public float for EA is 243.54M, and at present, short sellers hold a 1.17% of that float. On November 20, 2023, the average trading volume of EA was 2.06M shares.
EA’s Market Performance
EA stock saw an increase of 1.39% in the past week, with a monthly gain of 5.56% and a quarterly increase of 12.54%. The volatility ratio for the week is 1.10%, and the volatility levels for the last 30 days are 1.59% for Electronic Arts, Inc. (EA). The simple moving average for the last 20 days is 4.47% for EA’s stock, with a simple moving average of 8.54% for the last 200 days.
Analysts’ Opinion of EA
Many brokerage firms have already submitted their reports for EA stocks, with BofA Securities repeating the rating for EA by listing it as a “Buy.” The predicted price for EA in the upcoming period, according to BofA Securities is $150 based on the research report published on October 10, 2023 of the current year 2023.
EA Trading at 7.15% from the 50-Day Moving Average
After a stumble in the market that brought EA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.12% of loss for the given period.
Volatility was left at 1.59%, however, over the last 30 days, the volatility rate increased by 1.10%, as shares surge +6.30% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +9.60% upper at present.
During the last 5 trading sessions, EA rose by +1.22%, which changed the moving average for the period of 200-days by +17.89% in comparison to the 20-day moving average, which settled at $129.16. In addition, Electronic Arts, Inc. saw 10.10% in overturn over a single year, with a tendency to cut further gains.
Reports are indicating that there were more than several insider trading activities at EA starting from Schatz Jacob J., who sale 1,000 shares at the price of $134.45 back on Nov 15. After this action, Schatz Jacob J. now owns 20,922 shares of Electronic Arts, Inc., valued at $134,450 using the latest closing price.
Simonson Richard A, the Director of Electronic Arts, Inc., sale 10,000 shares at $128.22 during a trade that took place back on Nov 03, which means that Simonson Richard A is holding 61,045 shares at $1,282,235 based on the most recent closing price.
Stock Fundamentals for EA
Current profitability levels for the company are sitting at:
- +18.78 for the present operating margin
- +73.62 for the gross margin
The net margin for Electronic Arts, Inc. stands at +11.08. The total capital return value is set at 14.04, while invested capital returns managed to touch 8.34. Equity return is now at value 12.92, with 7.57 for asset returns.
Based on Electronic Arts, Inc. (EA), the company’s capital structure generated 30.48 points at debt to equity in total, while total debt to capital is 23.36. Total debt to assets is 16.52, with long-term debt to equity ratio resting at 29.58. Finally, the long-term debt to capital ratio is 22.67.
When we switch over and look at the enterprise to sales, we see a ratio of 4.76, with the company’s debt to enterprise value settled at 0.07. The receivables turnover for the company is 10.86 and the total asset turnover is 0.53. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.21.
To sum up, Electronic Arts, Inc. (EA) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.