What The Financials Tell Us About Activision Blizzard Inc. (ATVI)


Activision Blizzard Inc. (NASDAQ:ATVI) finished Thursday with an addition of $1.71 to close at $77.03, an upside of 2.27 percent. An average of 8,678,320 shares of common stock have been traded in the last five days. There was a gain of $0.20 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 6,017,070 shares traded, while the 50-day average volume stands at 5,094,362.

ATVI stock has decreased by -2.91% in the last month. The company shares reached their 1-month lowest point of $74.83 on 09/21/22. With the stock rallying to its 52-week high on 01/18/22, shares of the company touched a low of $56.40 and a high of $86.90 in 52 weeks. It has reached a new high 3 times so far this year and achieved 15.78% or $10.50 in price. In spite of this, the price is down -11.36% from the 52-week high.

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Insider Transactions

14 days have passed since Activision Blizzard Inc. (ATVI) last reported insider trading activity. Alegre Daniel, who is President and COO, most recently acquired $10,000 shares at $78.16 per share on Sep 09. In this transaction, the insider spent $781,617. Chief Financial Officer, ZERZA ARMIN, disposed of 10,174 shares at a price of $80.22 on Aug 03. The insider now owns more than $816,170 worth of shares. Prior to that, Chief Financial Officer ZERZA ARMIN went on to Sale 3,295 shares at $77.54 each on Jun 01. An amount of $255,495 was transacted.

Valuation Metrics

Activision Blizzard Inc. (ATVI) has a trailing price-to-earnings (P/E) ratio of 32.19. The stock’s beta is 0.51. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 7.97, the price-to-book (PB) ratio at 3.30, and the price-to-cash flow ratio at 31.62.

The company has a payout ratio of 19.50%. The company’s most recent quarterly dividend payment was $0.47 a share, without any change from last year. Its latest increase dividend $0.06 reported on Thursday February 4 2021.

Financial Health

The quick ratio of Activision Blizzard Inc. for the three months ended June 29 was 6.20, and the current ratio was 6.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.20 and a total debt to equity ratio of 0.20 for the quarter ending June 29. Its gross profit as reported stood at $6.49 billion compared to revenue of $8.8 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Activision Blizzard Inc.’s return on assets was 7.60%.

Earnings Surprise

For the three-month period that ended June 29, Activision Blizzard Inc. had $3.61 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $280.0 million in the quarter, while revenues were shrunk -212.86%. The analyst consensus anticipated Activision Blizzard Inc.’s latest quarter earnings to come in at $0.48 per share, but it turned out to be $0.47, a -2.10% surprise. For the quarter, EBITDA amounted to $421.0 million. Shareholders own equity worth $782.31 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Activision Blizzard Inc. (ATVI) price momentum. RSI 9-day as of the close on 22 September was 49.63%, suggesting the stock is Neutral, with historical volatility in this time frame at 17.33%.

As of today, ATVI’s price is $75.87 +0.26% or $0.20 from its 5-day moving average. ATVI is currently trading -2.84% lower than its 20-day SMA and +1.89% higher than its 100-day SMA. However, the stock’s current price level is +1.41% above the SMA50 and +32.60% above the SMA200.

The stochastic %K and %D were 22.17% and 12.34%, respectively, and the average true range (ATR) was 1.14. With the 14-day stochastic at 53.79% and the average true range at 1.06, the RSI (14) stands at 46.13%. The stock has reached -0.61 on the 9-day MACD Oscillator while the 14-day reading was at -1.04.

Analyst Ratings

Atlantic Equities upgraded Activision Blizzard Inc. (NASDAQ: ATVI) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Activision Blizzard Inc. (ATVI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ATVI, while 13 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 10 others rate it as a “buy”.

What is ATVI’s price target for the next 12 months?

Analysts predict a range of price targets between $82.00 and $100.00, with a median target of $95.00. Taking a look at these predictions, the average price target given by analysts for Activision Blizzard Inc. (ATVI) stock is $93.41.


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