Is Activision Blizzard Inc. (ATVI) Good For Your Portfolio?


Activision Blizzard Inc. (NASDAQ:ATVI) saw an upside of 1.87% to close Monday at $75.22 after adding $1.38 on the day. The 5-day average trading volume is 7,389,940 shares of the company’s common stock. It has gained $75.96 in the past week and touched a new high 1 time within the past 5 days. An average of 4,931,005 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 6,413,926.

ATVI’s 1-month performance is -0.87% or -$0.73 on its low of $73.38 reached on 01/18/23. The company’s shares have touched a 52-week low of $70.94 and high of $82.00, with the stock’s rally to the 52-week high happening on 01/09/23. YTD, ATVI has lost -1.74% or -$1.33 and has reached a new high 4 times. However, the current price is down -8.27% from the 52-week high price.

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Insider Transactions

ATVI stock investors last saw insider trading activity on Sep 09.Alegre Daniel (President and COO) most recently sold 10,000 shares at $78.16 per share on Sep 09. This transaction cost the insider $781,617. Chief Financial Officer, ZERZA ARMIN, sold 10,174 shares at a price of $80.22 on Aug 03. Then, on Jun 01, Chief Financial Officer ZERZA ARMIN sold 3,295 shares at a price of $77.54 per share. This transaction amounted to $255,495.

Valuation Metrics

ATVI stock has a beta of 0.42. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 7.99 while the price-to-book (PB) in the most recent quarter is 3.13, with the price to cash flow ratio at 35.21.

Activision Blizzard Inc.’s quick ratio for the period ended June 29 was 5.80, with the current ratio over the same period at 5.80. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.19, while the total debt to equity was 0.19. In terms of profitability, the gross margin trailing 12 months is 71.10%. The firm’s gross profit as reported stood at $6.49 billion against revenue of $8.8 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -46.9% to $435.0 million, while revenue of $280.0 million was 35.63% off the previous quarter. Analysts expected ATVI to announce $0.48 per share in earnings in its latest quarter, but it posted $0.47, representing a -2.10% surprise. EBITDA for the quarter stood at more than $522.0 million. ATVI stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 6.81 billion, with total debt at $3.61 billion. Shareholders hold equity totaling $782.62 million.

Let’s look briefly at Activision Blizzard Inc. (ATVI) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 45.17% to suggest the stock is trending Neutral, with historical volatility in this time period at 18.65%.

The stock’s 5-day moving average is $74.37, reflecting a -1.88% or -$1.44 change from its current price. ATVI is currently trading -0.88% above its 20-day SMA, -4.48% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +4.47% and SMA200 by-6.42%.

Stochastic %K and %D was 18.61% and 14.53% and the average true range (ATR) pointed at 1.03. The RSI (14) points at 46.34%, while the 14-day stochastic is at 38.33% with the period’s ATR at 1.02. The stock’s 9-day MACD Oscillator is pointing at -1.29 and -1.84 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Activision Blizzard Inc. (NASDAQ: ATVI), Edward Jones upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for ATVI stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate ATVI as a “sell,”, while 7 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 4 rates the stock as overweight while 14 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $78.00 and a high of $95.00, with their median price target at $95.00. Looking at these predictions, the average price target given by analysts is for Activision Blizzard Inc. (ATVI) stock is $91.74.


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