MoffettNathanson has recently raised Electronic Arts Inc (EA) stock to Buy rating, as announced on January 31, 2025, according to Finviz. Earlier, on January 27, 2025, Exane BNP Paribas had reduced the stock from a Outperform to Neutral, setting a price target of $125. Raymond James also reduced Mkt Perform rating. Additionally, BofA Securities reduced Neutral rating on January 23, 2025, with a target price of $130. BMO Capital Markets analysts, in their report published on January 23, 2025, also reduced Market Perform rating and set a price target of $160 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 Thursday, Electronic Arts Inc (EA) stock saw a decline, ending the day at $129.82 which represents a decrease of $-1.35 or -1.03% from the prior close of $131.17. The stock opened at $130.44 and touched a low of $128.43 during the day, reaching a high of $131.56. The volume of shares traded was 3.09 million falling short of the average volume of 3.09 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 -1.65% over the last five trades and -8.42% 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 -11.63%, and it has plunged by -18.55% in the previous three months. Currently, EA is trading at 1.46%, -9.14%, and -9.55% 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 -22.96% below its 52-week high but remains 12.68% above its 52-week low. The Average True Range (ATR) (14 days) of 4.01 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 financial health. The company currently boasts an operating margin of 21.09% and a profit margin of 14.29%, with a gross margin of -11.63%. 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 $33.83 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 33.03, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.3. Additionally, the Price-to-Sales Ratio is 4.61, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.58, 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 9.69% of Electronic Arts Inc (EA)’s shares, while financial institutions hold 87.16%.
Notable insider trades include Miele Laura, President of EA Entertainment at Electronic Arts Inc (EA), who sold 2500 shares on Feb 06 ’25, at $130.83 each, totaling $0.33 million. On Feb 03 ’25, Singh Vijayanthimala, Chief People Officer, sold 1000 shares for $122.03 each, amounting to $0.12 million. Additionally, on Jan 21 ’25, Wilson Andrew sold 5000 shares at $142.68 each, generating $0.71 million.
