Analytical Overview: Electronic Arts, Inc. (EA)’s Ratios Tell a Financial Story

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As of close of business last night, Electronic Arts, Inc.’s stock clocked out at $138.66, down -0.16% from its previous closing price of $138.88. In other words, the price has decreased by -$0.16 from its previous closing price. On the day, 0.8 million shares were traded. EA stock price reached its highest trading level at $139.42 during the session, while it also had its lowest trading level at $138.11.

Ratios:

To gain a deeper understanding of EA’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 11.30 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 17.41. For the most recent quarter (mrq), Quick Ratio is recorded 1.37 and its Current Ratio is at 1.37. In the meantime, Its Debt-to-Equity ratio is 0.32 whereas as Long-Term Debt/Eq ratio is at 0.29.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Stifel on January 18, 2024, Reiterated its Buy rating but revised its target price to $155 from $152 previously.

On January 09, 2024, BMO Capital Markets started tracking the stock assigning a Outperform rating and target price of $160.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Jul 01 ’24 when Miele Laura sold 2,000 shares for $137.83 per share. The transaction valued at 275,662 led to the insider holds 52,933 shares of the business.

Singh Vijayanthimala sold 800 shares of EA for $111,768 on Jul 01 ’24. The Chief People Officer now owns 38,574 shares after completing the transaction at $139.71 per share. On Jun 25 ’24, another insider, Wilson Andrew, who serves as the Chairman & CEO of the company, sold 2,500 shares for $140.26 each. As a result, the insider received 350,644 and left with 61,747 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, EA now has a Market Capitalization of 36849471488 and an Enterprise Value of 35872735232. As of this moment, Electronic’s Price-to-Earnings (P/E) ratio for their current fiscal year is 29.64, and their Forward P/E ratio for the next fiscal year is 16.46. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.43. For the stock, the TTM Price-to-Sale (P/S) ratio is 4.91 while its Price-to-Book (P/B) ratio in mrq is 4.92. Its current Enterprise Value per Revenue stands at 4.744 whereas that against EBITDA is 18.099.

Stock Price History:

The Beta on a monthly basis for EA is 0.79, which has changed by 0.060979366 over the last 52 weeks, in comparison to a change of 0.25510752 over the same period for the S&P500. Over the past 52 weeks, EA has reached a high of $144.53, while it has fallen to a 52-week low of $117.47. The 50-Day Moving Average of the stock is 4.44%, while the 200-Day Moving Average is calculated to be 4.29%.

Shares Statistics:

It appears that EA traded 2.17M shares on average per day over the past three months and 1762340 shares per day over the past ten days. A total of 266.42M shares are outstanding, with a floating share count of 240.40M. Insiders hold about 9.53% of the company’s shares, while institutions hold 87.83% stake in the company. Shares short for EA as of 1718323200 were 6579827 with a Short Ratio of 3.03, compared to 1715731200 on 5431598. Therefore, it implies a Short% of Shares Outstanding of 6579827 and a Short% of Float of 2.79.

Dividends & Splits

With its trailing 12-month dividend rate of 0.76, EA has a forward annual dividend rate of 0.76. Against a Trailing Annual Dividend Yield of 0.00547235The current Payout Ratio is 16.24% for EA, which recently paid a dividend on 2024-05-29 with an ex-dividend date of 1716940800. Stock splits for the company last occurred on 2003-11-18 when the company split stock in a 2:1 ratio.

Earnings Estimates

The current rating of Electronic Arts, Inc. (EA) reflects the combined expertise of 16.0 analysts actively engaged in assessing its market performance.On average, analysts expect EPS of $0.41 for the current quarter, with a high estimate of $0.49 and a low estimate of $0.28, while EPS last year was $1.14. The consensus estimate for the next quarter is $1.82, with high estimates of $2.3 and low estimates of $1.51.

Analysts are recommending an EPS of between $7.82 and $6.47 for the fiscal current year, implying an average EPS of $7.34. EPS for the following year is $8.3, with 20.0 analysts recommending between $9.16 and $7.39.

Revenue Estimates

In the current quarter, 16 analysts expect revenue to total $1.26B. It ranges from a high estimate of $1.61B to a low estimate of $1.15B. As of the current estimate, Electronic Arts, Inc.’s year-ago sales were $1.59BFor the next quarter, 16 analysts are estimating revenue of $1.92B. There is a high estimate of $2.05B for the next quarter, whereas the lowest estimate is $1.77B.

A total of 20 analysts have provided revenue estimates for EA’s current fiscal year. The highest revenue estimate was $7.7B, while the lowest revenue estimate was $7.29B, resulting in an average revenue estimate of $7.5B. In the same quarter a year ago, actual revenue was $7.43BBased on 19 analysts’ estimates, the company’s revenue will be $8.09B in the next fiscal year. The high estimate is $9.1B and the low estimate is $7.68B.

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