Deeper Dive: Understanding Electronic Arts, Inc. (EA) Through its Various Ratios

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The price of Electronic Arts, Inc. (NASDAQ: EA) closed at $126.59 in the last session, up 0.01% from day before closing price of $126.58. In other words, the price has increased by $0.01 from its previous closing price. On the day, 1.99 million shares were traded. EA stock price reached its highest trading level at $126.9 during the session, while it also had its lowest trading level at $125.45.

Ratios:

We take a closer look at EA’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 10.38 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 15.99. For the most recent quarter (mrq), Quick Ratio is recorded 1.33 and its Current Ratio is at 1.37. In the meantime, Its Debt-to-Equity ratio is 0.25 whereas as Long-Term Debt/Eq ratio is at 0.25.

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:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on May 01 ’24 when Miele Laura sold 2,000 shares for $128.15 per share. The transaction valued at 256,303 led to the insider holds 32,772 shares of the business.

Singh Vijayanthimala sold 800 shares of EA for $101,312 on May 01 ’24. The Chief People Officer now owns 26,283 shares after completing the transaction at $126.64 per share. On Apr 25 ’24, another insider, Wilson Andrew, who serves as the CEO and Board Chair of the company, sold 2,500 shares for $127.19 each. As a result, the insider received 317,980 and left with 23,430 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 33843834880 and an Enterprise Value of 32419530752. As of this moment, Electronic’s Price-to-Earnings (P/E) ratio for their current fiscal year is 27.08, and their Forward P/E ratio for the next fiscal year is 14.88. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.22. For the stock, the TTM Price-to-Sale (P/S) ratio is 4.51 while its Price-to-Book (P/B) ratio in mrq is 4.51. Its current Enterprise Value per Revenue stands at 4.287 whereas that against EBITDA is 16.105.

Stock Price History:

The Beta on a monthly basis for EA is 0.79, which has changed by 0.013368607 over the last 52 weeks, in comparison to a change of 0.26159418 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 -3.09%, while the 200-Day Moving Average is calculated to be -3.26%.

Shares Statistics:

According to the various share statistics, EA traded on average about 2.15M shares per day over the past 3-months and 2407630 shares per day over the past 10 days. A total of 272.91M shares are outstanding, with a floating share count of 241.79M. Insiders hold about 9.56% of the company’s shares, while institutions hold 85.60% stake in the company. Shares short for EA as of 1714435200 were 6229207 with a Short Ratio of 2.89, compared to 1711584000 on 7803512. Therefore, it implies a Short% of Shares Outstanding of 6229207 and a Short% of Float of 2.33.

Dividends & Splits

The forward annual dividend rate for EA is 0.76, which was 0.76 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 0.006004108The current Payout Ratio is 16.24% for EA, which recently paid a dividend on 2024-02-27 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) is the result of assessments by 18.0 analysts actively engaged in evaluating its market dynamics.On average, analysts expect EPS of $0.48 for the current quarter, with a high estimate of $1.02 and a low estimate of $0.28, while EPS last year was $1.14. The consensus estimate for the next quarter is $1.79, with high estimates of $2.3 and low estimates of $1.44.

Analysts are recommending an EPS of between $7.82 and $6.56 for the fiscal current year, implying an average EPS of $7.47. EPS for the following year is $8.42, with 23.0 analysts recommending between $9.42 and $7.39.

Revenue Estimates

According to 18 analysts, the current quarter’s revenue is expected to be $1.28B. It ranges from a high estimate of $1.71B 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, 18 analysts are estimating revenue of $1.91B. There is a high estimate of $2.05B for the next quarter, whereas the lowest estimate is $1.77B.

A total of 24 analysts have provided revenue estimates for EA’s current fiscal year. The highest revenue estimate was $7.8B, while the lowest revenue estimate was $7.29B, resulting in an average revenue estimate of $7.55B. In the same quarter a year ago, actual revenue was $7.43BBased on 22 analysts’ estimates, the company’s revenue will be $8.12B in the next fiscal year. The high estimate is $9.1B and the low estimate is $7.68B.

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