Electronic Arts Inc. [NASDAQ: EA] traded at a low on 07/02/20, posting a -1.02 loss after which it closed the day’ session at $133.84. Recently, one of the most trusted sources of financial news, Wall Street Reporter published a report on the insights from leaders at Electronic Arts (EA), ImagineAR (IPNFF) (IP.CN), Snapchat (SNAP), and Spotify (SPOT).
The leaders of the following companies discussed the convergence of technologies and consumer trends. EA being a top gaming seller with FIFA having around more than 100 million users across the globe shows that it has revolutionized the gaming industry. The Wall Street Reporter mentioned that the tech and gaming leaders commented on recent earnings calls. The swift development and transformation in the gaming world have driven new megatrends in consumer behavior. Gamers have moved to online gaming with live streaming moving up in esports, augmented reality, and more. So far, more than 25 million unique players have joined FIFA 20 across different regions in the world.
The results of the trading session contributed to over 1892095 shares changing hands. Over the past one week, the price volatility of Electronic Arts Inc. stands at 2.38% while the volatility over the past one month is 2.82%.
The market cap for EA stock reached $39.04 billion, with 290.00 million shares outstanding and 287.52 million shares in the current float. Compared to the average trading volume of 3.29M shares, EA reached a trading volume of 1892095 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Electronic Arts Inc. [EA]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for EA shares is $131.84 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on EA stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Needham have made an estimate for Electronic Arts Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 26, 2020. While these analysts kept the previous recommendation, MKM Partners raised their target price from $130 to $144. The new note on the price target was released on June 23, 2020, representing the official price target for Electronic Arts Inc. stock. Previously, the target price had yet another raise from $143 to $151, while The Benchmark Company kept a Buy rating on EA stock.
The Average True Range (ATR) for Electronic Arts Inc. is set at 3.57, with the Price to Sales ratio for EA stock in the period of the last 12 months amounting to 7.05. The Price to Book ratio for the last quarter was 5.20, with the Price to Cash per share for the same quarter was set at 19.66. Price to Free Cash Flow for EA in the course of the last twelve months was 23.56 with Quick ratio for the last quarter at 2.40.
How has EA stock performed recently?
Electronic Arts Inc. [EA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.37. With this latest performance, EA shares gained by 13.49% in over the last four-week period, additionally plugging by 24.69% over the last 6 months – not to mention a rise of 36.42% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for EA stock in for the last two-week period is set at 68.64, with the RSI for the last a single of trading hit 72.09, and the three-weeks RSI is set at 66.73 for Electronic Arts Inc. [EA]. The present Moving Average for the last 50 days of trading for this stock 121.46, while it was recorded at 132.55 for the last single week of trading, and 107.35 for the last 200 days.
Electronic Arts Inc. [EA]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Electronic Arts Inc. [EA] shares currently have an operating margin of +25.39 and a Gross Margin at +74.55. Electronic Arts Inc.’s Net Margin is presently recorded at +55.60.
Return on Total Capital for EA is now 18.50, given the latest momentum, and Return on Invested Capital for the company is 42.39. Return on Equity for this stock inclined to 47.51, with Return on Assets sitting at 30.29. When it comes to the capital structure of this company, Electronic Arts Inc. [EA] has a Total Debt to Total Equity ratio set at 16.35. Additionally, EA Total Debt to Total Capital is recorded at 14.05, with Total Debt to Total Assets ending up at 10.98. Long-Term Debt to Equity for the company is recorded at 7.40, with the Long-Term Debt to Total Capital now at 6.36.
Reflecting on the efficiency of the workforce at the company, Electronic Arts Inc. [EA] managed to generate an average of $310,102 per employee. Receivables Turnover for the company is 10.08 with a Total Asset Turnover recorded at a value of 0.54.Electronic Arts Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.40.
Earnings analysis for Electronic Arts Inc. [EA]
With the latest financial reports released by the company, Electronic Arts Inc. posted 0.25/share EPS, while the average EPS was predicted by analysts to be reported at 0.01/share.When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2,400.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for EA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Electronic Arts Inc. go to 12.33%.
Insider trade positions for Electronic Arts Inc. [EA]
There are presently around $34,727 million, or 94.00% of EA stock, in the hands of institutional investors. The top three institutional holders of EA stocks are: VANGUARD GROUP INC with ownership of 23,153,592, which is approximately 2.637% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 19,532,178 shares of the stock with an approximate value of $2.61 billion in EA stocks shares; and STATE STREET CORP, currently with $1.88 billion in EA stock with ownership of nearly 5.658% of the company’s market capitalization.
Positions in Electronic Arts Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 464 institutional holders increased their position in Electronic Arts Inc. [NASDAQ:EA] by around 25,298,760 shares. Additionally, 400 investors decreased positions by around 30,594,377 shares, while 103 investors held positions by with 203,572,689 shares. The mentioned changes placed institutional holdings at 259,465,826 shares, according to the latest SEC report filing. EA stock had 127 new institutional investments in for a total of 5,301,933 shares, while 107 institutional investors sold positions of 8,704,949 shares during the same period.