Electronic Arts, Inc. (NASDAQ: EA)’s stock price has soared by 0.16 in relation to previous closing price of 145.50. Nevertheless, the company has seen a loss of -2.27% in its stock price over the last five trading days. fool.com reported 2024-08-03 that EA remains profitable, but where’s the growth?
Is It Worth Investing in Electronic Arts, Inc. (NASDAQ: EA) Right Now?
The price-to-earnings ratio for Electronic Arts, Inc. (NASDAQ: EA) is above average at 34.24x, Company’s 36-month beta value is 0.79.Analysts have differing opinions on the stock, with 14 analysts rating it as a “buy,” 8 as “overweight,” 5 as “hold,” and 0 as “sell.”
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The public float for EA is 238.95M, and currently, short sellers hold a 2.40% ratio of that floaft. The average trading volume of EA on August 07, 2024 was 2.47M shares.
EA’s Market Performance
EA stock saw an increase of -2.27% in the past week, with a monthly gain of 4.35% and a quarterly increase of 11.62%. The volatility ratio for the week is 2.98%, and the volatility levels for the last 30 days are 2.26% for Electronic Arts, Inc. (EA).. The simple moving average for the past 20 days is 0.33% for EA’s stock, with a 7.61% simple moving average for the past 200 days.
Analysts’ Opinion of EA
Many brokerage firms have already submitted their reports for EA stocks, with Goldman repeating the rating for EA by listing it as a “Neutral.” The predicted price for EA in the upcoming period, according to Goldman is $150 based on the research report published on July 31, 2024 of the current year 2024.
Oppenheimer, on the other hand, stated in their research note that they expect to see EA reach a price target of $170, previously predicting the price at $150. The rating they have provided for EA stocks is “Outperform” according to the report published on July 16th, 2024.
Citigroup gave a rating of “Neutral” to EA, setting the target price at $161 in the report published on July 15th of the current year.
EA Trading at 3.92% 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 -5.06% of loss for the given period.
Volatility was left at 2.26%, however, over the last 30 days, the volatility rate increased by 2.98%, as shares surge +3.66% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.43% upper at present.
During the last 5 trading sessions, EA fell by -2.27%, which changed the moving average for the period of 200-days by +11.88% in comparison to the 20-day moving average, which settled at $145.51. In addition, Electronic Arts, Inc. saw 6.52% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at EA starting from Ubinas Luis A, who proposed sale 2,126 shares at the price of $146.70 back on Aug 02 ’24. After this action, Ubinas Luis A now owns shares of Electronic Arts, Inc., valued at $311,876 using the latest closing price.
Ubinas Luis A, the Director of Electronic Arts, Inc., sale 2,126 shares at $146.77 during a trade that took place back on Aug 02 ’24, which means that Ubinas Luis A is holding 0 shares at $312,042 based on the most recent closing price.
Stock Fundamentals for EA
Current profitability levels for the company are sitting at:
- 0.2 for the present operating margin
- 0.77 for the gross margin
The net margin for Electronic Arts, Inc. stands at 0.16. The total capital return value is set at 0.14. Equity return is now at value 15.62, with 8.93 for asset returns.
Based on Electronic Arts, Inc. (EA), the company’s capital structure generated 0.22 points at debt to capital in total, while cash flow to debt ratio is standing at 0.97. The debt to equity ratio resting at 0.29. The interest coverage ratio of the stock is 16.47.
Currently, EBITDA for the company is 2.06 billion with net debt to EBITDA at -0.15. When we switch over and look at the enterprise to sales, we see a ratio of 5.28. The receivables turnover for the company is 16.84for trailing twelve months and the total asset turnover is 0.57. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.45.
Conclusion
In a nutshell, Electronic Arts, Inc. (EA) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
