Electronic Arts Inc. [EA] Revenue clocked in at $5.63 billion, down -3.47% YTD: What’s Next?

Electronic Arts Inc. [NASDAQ: EA] plunged by -$2.24 during the normal trading session on Wednesday and reaching a high of $141.67 during the day while it closed the day at $138.62. The company report on June 23, 2021 that Electronic Arts Acquires Playdemic, Makers of the Highly Successful Golf Clash Mobile Game, From Warner Bros. Games and AT&T.

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Talented Creators of Golf Clash Set to Bring Expertise to Future Mobile Games for EA.

, Electronic Arts (NASDAQ:EA), AT&T* (NYSE:T) and WarnerMedia announced the sale of Warner Bros. Games’ Playdemic, Ltd., the mobile games studio responsible for Golf Clash, to EA. Under the terms of the agreement, EA will acquire Playdemic for $1.4 billion in cash.

Electronic Arts Inc. stock has also loss -2.79% of its value over the past 7 days. However, EA stock has inclined by 6.80% in the 3 months of the year. Over the past six months meanwhile, it has lost -1.69% and lost -3.47% year-on date.

The market cap for EA stock reached $39.90 billion, with 289.00 million shares outstanding and 283.46 million shares in the current float. Compared to the average trading volume of 2.16M shares, EA reached a trading volume of 1712339 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $162.93 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.

Jefferies have made an estimate for Electronic Arts Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 23, 2021. While these analysts kept the previous recommendation, The Benchmark Company raised their target price from $171 to $177. The new note on the price target was released on February 09, 2021, representing the official price target for Electronic Arts Inc. stock. Previously, the target price had yet another raise to $155, while Atlantic Equities analysts kept a Neutral rating on EA stock. On February 02, 2021, analysts increased their price target for EA shares from 163 to 171.

The Average True Range (ATR) for Electronic Arts Inc. is set at 2.87, with the Price to Sales ratio for EA stock in the period of the last 12 months amounting to 7.09. The Price to Book ratio for the last quarter was 5.11, with the Price to Cash per share for the same quarter was set at 22.12. Price to Free Cash Flow for EA in the course of the last twelve months was 22.66 with Quick ratio for the last quarter at 2.40.

EA stock trade performance evaluation

Electronic Arts Inc. [EA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.79. With this latest performance, EA shares dropped by -2.44% in over the last four-week period, additionally sinking by -1.69% over the last 6 months – not to mention a rise of 6.14% 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 38.00, with the RSI for the last a single of trading hit 29.65, and the three-weeks RSI is set at 42.85 for Electronic Arts Inc. [EA]. The present Moving Average for the last 50 days of trading for this stock 142.05, while it was recorded at 140.70 for the last single week of trading, and 135.56 for the last 200 days.

Electronic Arts Inc. [EA]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Electronic Arts Inc. [EA] shares currently have an operating margin of +19.10 and a Gross Margin at +73.07. Electronic Arts Inc.’s Net Margin is presently recorded at +14.79.

Return on Total Capital for EA is now 11.58, given the latest momentum, and Return on Invested Capital for the company is 9.34. Return on Equity for this stock inclined to 10.94, with Return on Assets sitting at 6.86. When it comes to the capital structure of this company, Electronic Arts Inc. [EA] has a Total Debt to Total Equity ratio set at 27.47. Additionally, EA Total Debt to Total Capital is recorded at 21.55, with Total Debt to Total Assets ending up at 16.21. Long-Term Debt to Equity for the company is recorded at 26.51, with the Long-Term Debt to Total Capital now at 20.79.

Reflecting on the efficiency of the workforce at the company, Electronic Arts Inc. [EA] managed to generate an average of $76,091 per employee. Receivables Turnover for the company is 11.53 with a Total Asset Turnover recorded at a value of 0.46.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 per share (EPS) analysis for Electronic Arts Inc. [EA] stock

With the latest financial reports released by the company, Electronic Arts Inc. posted 1.42/share EPS, while the average EPS was predicted by analysts to be reported at 0.79/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 79.70%. 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 15.51%.

Electronic Arts Inc. [EA]: Insider Ownership positions

There are presently around $35,791 million, or 94.30% of EA stock, in the hands of institutional investors. The top three institutional holders of EA stocks are: BLACKROCK INC. with ownership of 23,793,414, which is approximately 3.479% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 22,162,337 shares of the stock with an approximate value of $3.07 billion in EA stocks shares; and PUBLIC INVESTMENT FUND, currently with $1.97 billion in EA stock with ownership of nearly 91.505% of the company’s market capitalization.

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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 467 institutional holders increased their position in Electronic Arts Inc. [NASDAQ:EA] by around 22,230,970 shares. Additionally, 465 investors decreased positions by around 28,821,052 shares, while 136 investors held positions by with 207,145,979 shares. The mentioned changes placed institutional holdings at 258,198,001 shares, according to the latest SEC report filing. EA stock had 104 new institutional investments in for a total of 3,374,576 shares, while 112 institutional investors sold positions of 3,243,332 shares during the same period.

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