Goldman has recently reiterated Electronic Arts Inc (EA) stock to Neutral rating, as announced on July 31, 2024, according to Finviz. Earlier, on July 16, 2024, Oppenheimer had reiterated the stock to Outperform, setting a price target of $170 for EA stock. Citigroup also reduced Neutral rating with a price target of $161. Additionally, Jefferies resumed Buy rating on July 11, 2024, with a target price of $165. Stifel analysts, in their report published on January 18, 2024, also reiterated Buy rating and set a price target of $155 for Electronic Arts Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Electronic Arts Inc (EA) Stock Trading Recap
On Monday, Electronic Arts Inc (EA) stock saw a modest uptick, ending the day at $145.71 which represents a slight increase of $1.36 or 0.94% from the prior close of $144.35. The stock opened at $144.17 and touched a low of $142.63 during the day, reaching a high of $145.82. The volume of shares traded was 1.29 million falling short of the average volume of 1.96 million.
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EA Stock Performance and Moving Averages
In recent trading, Electronic Arts Inc (EA) stock price has shown some volatility, fluctuating 1.07% over the last five trades and 4.41% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 14.62%, and it has gained 2.62% in the previous three months. Currently, EA is trading at 1.59%, 0.46%, and 5.21% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, EA, a Communication Services sector stock, is trading -5.08% below its 52-week high but remains 21.51% above its 52-week low. The Average True Range (ATR) (14 days) of 2.29 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Electronic Arts Inc’s Profitability and Valuation Ratios
Electronic Arts Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 20.00% and a profit margin of 15.84%, with a gross margin of 14.62%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Electronic Arts Inc’s market capitalization stands at $38.50 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 34.24, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.17. Additionally, the Price-to-Sales Ratio is 5.3, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.22, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 9.61% of Electronic Arts Inc (EA)’s shares, while financial institutions hold 85.98%.
Notable insider trades include Schatz Jacob J., EVP, Global Affairs and CLO at Electronic Arts Inc (EA), who sold 1500 shares on Oct 15 ’24, at $144.72 each, totaling $0.22 million. On Oct 01 ’24, Singh Vijayanthimala, Chief People Officer, sold 1000 shares for $143.24 each, amounting to $0.14 million. Additionally, on Sep 25 ’24, Wilson Andrew sold 2500 shares at $141.5 each, generating $0.35 million.
