Electronic Arts Inc. [EA] moved down -0.39: Why It’s Important

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Electronic Arts Inc. [NASDAQ: EA] loss -0.39% on the last trading session, reaching $111.60 price per share at the time. The company report on May 10, 2022 that Electronic Arts Reports Q4 and FY22 Financial Results.

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Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2022.

“FY22 was a record year, with hundreds of millions of players around the world joining in our games to play, watch, and create with one another,” said Andrew Wilson, CEO of Electronic Arts. “With amazing games, built around powerful IP, made by incredibly talented teams, and outstanding engagement in our live services, FY23 is set to be a year of innovation and growth for Electronic Arts.”.

Electronic Arts Inc. represents 283.00 million in outstanding shares, while the company has a total market value of $32.56 billion with the latest information. EA stock price has been found in the range of $109.24 to $113.63.

If compared to the average trading volume of 1.95M shares, EA reached a trading volume of 6462105 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $161.82 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 2.00. 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.

Bernstein have made an estimate for Electronic Arts Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 22, 2022. While these analysts kept the previous recommendation, Goldman dropped their target price from $183 to $145. The new note on the price target was released on April 19, 2022, representing the official price target for Electronic Arts Inc. stock. Previously, the target price had yet another raise to $166, while BofA Securities analysts kept a Buy rating on EA stock. On February 02, 2022, analysts decreased their price target for EA shares from 175 to 155.

The Average True Range (ATR) for Electronic Arts Inc. is set at 3.60, with the Price to Sales ratio for EA stock in the period of the last 12 months amounting to 5.00. The Price to Book ratio for the last quarter was 4.15, with the Price to Cash per share for the same quarter was set at 10.34. Price to Free Cash Flow for EA in the course of the last twelve months was 22.21 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for EA stock

Electronic Arts Inc. [EA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.91. With this latest performance, EA shares dropped by -9.62% in over the last four-week period, additionally sinking by -19.22% over the last 6 months – not to mention a drop of -21.05% 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 32.43, with the RSI for the last a single of trading hit 28.14, and the three-weeks RSI is set at 35.40 for Electronic Arts Inc. [EA]. The present Moving Average for the last 50 days of trading for this stock 123.89, while it was recorded at 116.45 for the last single week of trading, and 132.71 for the last 200 days.

Electronic Arts Inc. [EA]: A deeper dive into fundamental analysis

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 1.20 and a Current Ratio set at 1.20.

Electronic Arts Inc. [EA]: An earnings per share (EPS) analysis

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 18.23%.

An analysis of insider ownership at Electronic Arts Inc. [EA]

There are presently around $28,388 million, or 93.10% of EA stock, in the hands of institutional investors. The top three institutional holders of EA stocks are: BLACKROCK INC. with ownership of 23,528,573, which is approximately 1.891% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 21,652,850 shares of the stock with an approximate value of $2.43 billion in EA stocks shares; and PUBLIC INVESTMENT FUND, currently with $1.59 billion in EA stock with ownership of nearly 0% 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 479 institutional holders increased their position in Electronic Arts Inc. [NASDAQ:EA] by around 20,823,680 shares. Additionally, 457 investors decreased positions by around 26,720,854 shares, while 151 investors held positions by with 205,825,259 shares. The mentioned changes placed institutional holdings at 253,369,793 shares, according to the latest SEC report filing. EA stock had 137 new institutional investments in for a total of 3,039,488 shares, while 99 institutional investors sold positions of 5,102,457 shares during the same period.