Electronic Arts, Inc. (NASDAQ: EA)’s stock price has increased by 1.09 compared to its previous closing price of 139.55. However, the company has seen a -3.72% decrease in its stock price over the last five trading sessions. seekingalpha.com reported 2024-09-21 that Electronic Arts is reasonably valued amid its 2024 Investor Day, where it showed strength and outlined core growth catalysts to support medium-term sentiment in the stock market. My 18-month bull-case outlook indicates a potential 37% price upside. However, this is highly dependent on whether the market prices EA stock according to its strong growth rates versus historically. The company could face medium-term to long-term risks with its rebranding of FIFA to EA Sports FC. This includes substantially higher marketing costs for now.
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 33.15x. The stock has a 36-month beta value of 0.79. Opinions on the stock are mixed, 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 238.81M, and at present, short sellers hold a 2.64% of that float. On September 24, 2024, the average trading volume of EA was 2.08M shares.
EA’s Market Performance
EA stock saw a decrease of -3.72% in the past week, with a monthly decline of -4.12% and a quarterly a decrease of -0.11%. The volatility ratio for the week is 2.23%, and the volatility levels for the last 30 days are 1.81% for Electronic Arts, Inc. (EA). The simple moving average for the past 20 days is -3.12% for EA’s stock, with a 2.29% 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 -3.39% 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 -8.10% of loss for the given period.
Volatility was left at 1.81%, however, over the last 30 days, the volatility rate increased by 2.23%, as shares sank -4.44% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.16% lower at present.
During the last 5 trading sessions, EA fell by -3.72%, which changed the moving average for the period of 200-days by +2.66% in comparison to the 20-day moving average, which settled at $145.28. In addition, Electronic Arts, Inc. saw 3.11% 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 Schatz Jacob J., who sale 1,500 shares at the price of $146.58 back on Sep 16 ’24. After this action, Schatz Jacob J. now owns 26,360 shares of Electronic Arts, Inc., valued at $219,870 using the latest closing price.
Singh Vijayanthimala, the Chief People Officer of Electronic Arts, Inc., sale 1,000 shares at $151.70 during a trade that took place back on Sep 03 ’24, which means that Singh Vijayanthimala is holding 30,190 shares at $151,700 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 5.08. 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
To sum up, Electronic Arts, Inc. (EA) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. 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.
