Electronic Arts Inc. (NASDAQ:EA) has a beta of 0.89, a 12-month trailing P/E ratio of 49.91, and a growth ratio of 3.22. The stock’s Relative Strength Index (RSI) is 56.01, with weekly volatility at 1.52% and ATR at 2.90. The EA stock’s 52-week price range has touched low of $110.15 and a $150.30 high. Its shares traded lower over the last trading session, losing 0.00% on 05/28/21. The shares fell to a low of $142.72 before closing at $142.93. Intraday shares traded counted 1.33 million, which was 42.88% higher than its 30-day average trading volume of 2.33M. EA’s previous close was $142.93 while the outstanding shares total 289.00M.
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Investors have identified the Electronic Gaming & Multimedia company Electronic Arts Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $40.91 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Electronic Arts Inc. (EA) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 7.21 billion total, with 2.96 billion as their total liabilities.
EA were able to record 1.81 billion as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.49 billion. In cash movements, the company had a total of 1.93 billion as operating cash flow.
Potential earnings growth for Electronic Arts Inc. (EA)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, Electronic Arts Inc. recorded a total of 1.35 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.05% coming in sequential stages and their sales for the 08/04/2021 quarter reducing by -24.29%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 319.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.03 billion. This allows shareholders to hold on to 289.00M with the recently reported earning now reading 0.26 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (0.72 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.45 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EA sounds very interesting.
Is the stock of EA attractive?
In related news, Chief Executive Officer, Wilson Andrew sold 14,847 shares of the company’s stock in a transaction that recorded on May 21. The sale was performed at an average price of 141.04, for a total value of 2,093,965. As the sale deal closes, the General Counsel & Corp Sect’y, Schatz Jacob J. now sold 1,000 shares of the company’s stock, valued at 137,050. Also, COO & CFO, Jorgensen Blake J sold 5,975 shares of the company’s stock in a deal that was recorded on May 12. The shares were price at an average price of 139.51 per share, with a total market value of 833,561. Following this completion of acquisition, the Chief People Officer, Singh Vijayanthimala now holds 800 shares of the company’s stock, valued at 114,168. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
18 out of 32 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Electronic Arts Inc.. 0 analysts has assigned a Sell rating on the EA stock. The 12-month mean consensus price target for the company’s shares has been set at $163.22.
