Electronic Arts, Inc. (EA) Stock: Evaluating the Market Performance

The price-to-earnings ratio for Electronic Arts, Inc. (NASDAQ: EA) is 33.37x, which is above its average ratio. Moreover, the 36-month beta value for EA is 0.77. Analysts have varying opinions on the stock, with 14 analysts rating it as a “buy,” 8 as “overweight,” 5 as “hold,” and 0 as “sell.”

The public float for EA is 241.78M and currently, short sellers hold a 2.88% of that float. On April 03, 2024, EA’s average trading volume was 2.07M shares.

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EA) stock’s latest price update

Electronic Arts, Inc. (NASDAQ: EA)’s stock price has dropped by -0.89 in relation to previous closing price of 133.34. Nevertheless, the company has seen a gain of 1.25% in its stock price over the last five trading days. InvestorPlace reported 2024-03-29 that Gaming has often flown under the radar in the entertainment space, but it continues to command a massive and growing presence. In fact, the most financially successful entertainment property in history is actually a game called Grand Theft Auto V.

EA’s Market Performance

EA’s stock has risen by 1.25% in the past week, with a monthly drop of -6.14% and a quarterly drop of -3.41%. The volatility ratio for the week is 1.13% while the volatility levels for the last 30 days are 1.62% for Electronic Arts, Inc.. The simple moving average for the past 20 days is -1.43% for EA’s stock, with a 0.51% simple moving average for the past 200 days.

Analysts’ Opinion of EA

Many brokerage firms have already submitted their reports for EA stocks, with Stifel repeating the rating for EA by listing it as a “Buy.” The predicted price for EA in the upcoming period, according to Stifel is $155 based on the research report published on January 18, 2024 of the current year 2024.

BMO Capital Markets, on the other hand, stated in their research note that they expect to see EA reach a price target of $160. The rating they have provided for EA stocks is “Outperform” according to the report published on January 09th, 2024.

EA Trading at -3.73% 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 -8.57% of loss for the given period.

Volatility was left at 1.62%, however, over the last 30 days, the volatility rate increased by 1.13%, as shares sank -4.80% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.04% lower at present.

During the last 5 trading sessions, EA rose by +1.25%, which changed the moving average for the period of 200-days by +3.32% in comparison to the 20-day moving average, which settled at $133.74. In addition, Electronic Arts, Inc. saw -3.41% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at EA starting from Miele Laura, who sale 2,000 shares at the price of $132.82 back on Apr 01 ’24. After this action, Miele Laura now owns 34,772 shares of Electronic Arts, Inc., valued at $265,640 using the latest closing price.

Singh Vijayanthimala, the Chief People Officer of Electronic Arts, Inc., sale 800 shares at $132.82 during a trade that took place back on Apr 01 ’24, which means that Singh Vijayanthimala is holding 27,083 shares at $106,256 based on the most recent closing price.

Stock Fundamentals for EA

Current profitability levels for the company are sitting at:

  • 0.22 for the present operating margin
  • 0.76 for the gross margin

The net margin for Electronic Arts, Inc. stands at 0.14. The total capital return value is set at 0.16. Equity return is now at value 14.31, with 7.97 for asset returns.

Based on Electronic Arts, Inc. (EA), the company’s capital structure generated 0.21 points at debt to capital in total, while cash flow to debt ratio is standing at 1.2. The debt to equity ratio resting at 0.26. The interest coverage ratio of the stock is 32.96.

Currently, EBITDA for the company is 2.09 billion with net debt to EBITDA at -0.41. When we switch over and look at the enterprise to sales, we see a ratio of 4.51. The receivables turnover for the company is 8.83for trailing twelve months and the total asset turnover is 0.56. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.33.

Conclusion

To wrap up, the performance of Electronic Arts, Inc. (EA) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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