BofA Securities slashes price target on Electronic Arts, Inc. [EA] – find out why.

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Electronic Arts, Inc. [NASDAQ: EA] surged by $4.5 during the normal trading session on Thursday and reaching a high of $130.88 during the day while it closed the day at $128.28. The company report on November 1, 2023 at 4:05 PM that Electronic Arts Reports Strong Q2 FY24 Results.

Company exceeds expectations on the strength of EA SPORTS portfolio; Successfully launches EA SPORTS FC 24.

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its second quarter ended September 30, 2023.

Electronic Arts, Inc. stock has also gained 3.75% of its value over the past 7 days. However, EA stock has inclined by 4.64% in the 3 months of the year. Over the past six months meanwhile, it has gained 3.44% and gained 4.99% year-on date.

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The market cap for EA stock reached $34.75 billion, with 272.91 million shares outstanding and 245.29 million shares in the current float. Compared to the average trading volume of 2.10M shares, EA reached a trading volume of 3989424 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 $143.12 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 1.93. 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.

BofA Securities have made an estimate for Electronic Arts, Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 10, 2023.

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The Average True Range (ATR) for Electronic Arts, Inc. is set at 2.59, with the Price to Sales ratio for EA stock in the period of the last 12 months amounting to 4.66. The Price to Book ratio for the last quarter was 4.75, with the Price to Cash per share for the same quarter was set at 8.51. Price to Free Cash Flow for EA in the course of the last twelve months was 17.20 with Quick ratio for the last quarter at 1.28.

EA stock trade performance evaluation

Electronic Arts, Inc. [EA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.75. With this latest performance, EA shares gained by 6.26% in over the last four-week period, additionally plugging by 3.44% over the last 6 months – not to mention a rise of 1.59% 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 58.65, with the RSI for the last a single of trading hit 61.18, and the three-weeks RSI is set at 56.97 for Electronic Arts, Inc. [EA]. The present Moving Average for the last 50 days of trading for this stock 123.05, while it was recorded at 123.96 for the last single week of trading, and 123.58 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 +18.78 and a Gross Margin at +73.62. Electronic Arts, Inc.’s Net Margin is presently recorded at +11.08.

Return on Total Capital for EA is now 14.04, given the latest momentum, and Return on Invested Capital for the company is 8.34. Return on Equity for this stock inclined to 10.75, with Return on Assets sitting at 5.88. When it comes to the capital structure of this company, Electronic Arts, Inc. [EA] has a Total Debt to Total Equity ratio set at 30.48. Additionally, EA Total Debt to Total Capital is recorded at 23.36, with Total Debt to Total Assets ending up at 16.52. Long-Term Debt to Equity for the company is recorded at 29.58, with the Long-Term Debt to Total Capital now at 22.67.

Reflecting on the efficiency of the workforce at the company, Electronic Arts, Inc. [EA] managed to generate an average of $59,851 per employee. Receivables Turnover for the company is 10.86 with a Total Asset Turnover recorded at a value of 0.53.Electronic Arts, Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.28 and a Current Ratio set at 1.38.

Earnings per share (EPS) analysis for Electronic Arts, Inc. [EA] stock

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 9.30%.

Electronic Arts, Inc. [EA]: Institutional Ownership

The top three institutional holders of EA stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2579%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $201.66 billion in EA stocks shares; and BERKSHIRE HATHAWAY INC, currently with $177.59 billion in EA stock with ownership which is approximately 5.7994%.

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