As of Wednesday close, Electronic Arts Inc.’s (NASDAQ:EA) stock was down -$0.41, moving down -0.34 percent to $120.55. The average number of shares traded per day over the past five days has been 1,518,580 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.77 fall in that time frame. In the last twenty days, the average volume was 1,933,910, while in the previous 50 days, it was 2,096,764.
Since last month, EA stock retreated -11.44%. Shares of the company fell to $117.82 on 08/21/23, the lowest level in the past month. A 52-week high of $140.30 was reached on 07/17/23 after having rallying from a 52-week low of $108.53. Since the beginning of this year, EA’s stock price has dropped by -1.33% or -$1.63, and marked a new high 11 times. However, the stock has declined by -14.08% since its 52-week high.
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EA stock investors should be aware that Electronic Arts Inc. (EA) stock had its last reported insider trading activity 3 days ago on Aug 28. Wilson Andrew, the CEO and Board Chair of the company, disposed of 5,000 shares for $120.00 on Aug 28. It resulted in a $600,000 divestment by the insider. Ubinas Luis A sold 2,004 shares at an average price of $122.06 on Aug 15. The insider now owns 0 shares following the transaction. On Aug 14, Chief Operating Officer Miele Laura sold 2,000 shares at $122.11 apiece. The transaction was valued at $244,220.
Valuation Metrics
Right now, Electronic Arts Inc. (EA) has a P/E ratio of about 37.30. The stock’s beta is 0.90. Besides these, the trailing price-to-sales (P/S) ratio of 4.31, the price-to-book (PB) ratio of 4.47, and the price-to-cash flow ratio of 18.24 may also be considered.
The latest dividend of $0.19 per share was paid out, remained unchanged from last year’s $0.19. On Tuesday May 10 2022, a $0.02 dividend increase was announced.
Financial Health
In the three months ended June 29, Electronic Arts Inc.’s quick ratio stood at 1.30, while its current ratio was 1.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.26, and the total debt-to-equity ratio was 0.26. On the profitability front, the trailing twelve-month gross margin is 75.80% percent. In the year ended June 29, EBITDA margin amounted to 24.73%, whereas operating margins totaled 18.90%. Based on annual data, EA earned $5.63 billion in gross profit and brought in $7.43 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 8.80%. Return on equity (ROE) for the past 12 months was 11.90%.
In Electronic Arts Inc.’s quarter-end financial report for June 29, it reported total debt of $1.88 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. EA’s revenue rose 8.16% to $1.87 billion during the quarter, while net income inched up to $1.92 billion. While analysts expected Electronic Arts Inc. to report $1.02 quarterly earnings, the actual figure was $1.14 per share, beating the consensus estimate by 11.80%. During the quarter, the company generated $630.0 million in EBITDA. The liabilities of Electronic Arts Inc. were 5.75 billion at the end of its most recent quarter ended June 29, and its total debt was $2.22 billion. The value of shareholders’ equity is $270.91 million.
Technical Picture
This quick technical analysis looks at Electronic Arts Inc.’s (EA) price momentum. With a historical volatility rate of 11.58%, the RSI 9-day stood at 40.70% on 30 August.
With respect to its five-day moving average, the current Electronic Arts Inc. price is down by -0.63% percent or -$0.77. At present, EA shares trade -4.56% below its 20-day simple moving average and -3.68% percent below its 100-day simple moving average. However, the stock is currently trading approximately -4.64% below its SMA50 and -7.48% below its SMA200.
Stochastic coefficient K was 49.13% and Stochastic coefficient D was 43.10%, while ATR was 1.68. Given the Stochastic reading of 47.56% for the 14-day period, the RSI (14) reading has been calculated as 38.35%. As of today, the MACD Oscillator reading stands at 0.74, while the 14-day reading stands at 0.30.
Analyst Ratings
Electronic Arts Inc. downgraded its rating on Electronic Arts Inc. (NASDAQ: EA) to a Neutral in a note to investors on August 02, 2023. The analysts firm previously had a Buy rating on the stock.Electronic Arts Inc. (EA) has been rated Overweight by analysts. According to 0 brokerage firms, EA is a sell, and 15 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Electronic Arts Inc. stock as buy, with 13 recommending it as overweight.
With a median target price of $145.00, the current consensus forecast for the stock is $127.00 – $161.00. Based on these forecasts, analysts predict Electronic Arts Inc. (EA) will achieve an average price target of $143.32.
