Electronic Arts, Inc. (NASDAQ: EA) has seen a decline in its stock price by -0.42 in relation to its previous close of 141.23. However, the company has experienced a 2.25% gain in its stock price over the last five trading sessions. youtube.com reported 2024-06-20 that The Investment Committee share their top stocks to watch for the second half.
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 30.06x. The 36-month beta value for EA is also noteworthy at 0.79. There are mixed opinions on the stock, with 14 analysts rating it as a “buy,” 8 rating it as “overweight,” 5 rating it as “hold,” and 0 rating it as “sell.”
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The public float for EA is 240.40M, and at present, short sellers hold a 2.65% of that float. The average trading volume of EA on June 26, 2024 was 2.22M shares.
EA’s Market Performance
EA stock saw an increase of 2.25% in the past week, with a monthly gain of 4.64% and a quarterly increase of 7.75%. The volatility ratio for the week is 1.35%, and the volatility levels for the last 30 days are 1.72% for Electronic Arts, Inc. (EA). The simple moving average for the last 20 days is 3.44% for EA stock, with a simple moving average of 6.19% for the last 200 days.
Analysts’ Opinion of EA
Many brokerage firms have already submitted their reports for EA stocks, with Stifel repeating the rating for EA by listing it as a “Buy.” The predicted price for EA in the upcoming period, according to Stifel is $155 based on the research report published on January 18, 2024 of the current year 2024.
BMO Capital Markets, on the other hand, stated in their research note that they expect to see EA reach a price target of $160. The rating they have provided for EA stocks is “Outperform” according to the report published on January 09th, 2024.
EA Trading at 7.14% 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 -2.70% of loss for the given period.
Volatility was left at 1.72%, however, over the last 30 days, the volatility rate increased by 1.35%, as shares surge +4.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +9.96% upper at present.
During the last 5 trading sessions, EA rose by +2.25%, which changed the moving average for the period of 200-days by +16.28% in comparison to the 20-day moving average, which settled at $136.23. In addition, Electronic Arts, Inc. saw 2.79% 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 1,000 shares at the price of $136.62 back on Jun 17 ’24. After this action, Schatz Jacob J. now owns 30,317 shares of Electronic Arts, Inc., valued at $136,618 using the latest closing price.
Miele Laura, the President of EA Entertainment of Electronic Arts, Inc., sale 2,000 shares at $133.54 during a trade that took place back on Jun 03 ’24, which means that Miele Laura is holding 54,933 shares at $267,073 based on the most recent closing price.
Stock Fundamentals for EA
Current profitability levels for the company are sitting at:
- 0.21 for the present operating margin
- 0.77 for the gross margin
The net margin for Electronic Arts, Inc. stands at 0.17. The total capital return value is set at 0.16. Equity return is now at value 17.20, with 9.47 for asset returns.
Based on Electronic Arts, Inc. (EA), the company’s capital structure generated 0.21 points at debt to capital in total, while cash flow to debt ratio is standing at 1.19. The debt to equity ratio resting at 0.26. The interest coverage ratio of the stock is 22.62.
Currently, EBITDA for the company is 2.06 billion with net debt to EBITDA at -0.55. When we switch over and look at the enterprise to sales, we see a ratio of 4.81. The receivables turnover for the company is 13.38for trailing twelve months and the total asset turnover is 0.56. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.37.
Conclusion
In summary, Electronic Arts, Inc. (EA) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
