Electronic Arts Inc. (EA) Stock: Why It’s Gaining

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Electronic Arts Inc. (EA) is gaining in the market today. The company, one that is focused on the tech sector, is currently trading at $102.34 after climbing -2.42% so far in today’s session. When it comes to technology companies, there are a number of aspects that have the ability to cause price movement in the market. One of the most common is news. Here are the recent headlines relating to EA:

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Mar-21-19 04:55PM Google’s Stadia Makes a Mark: Should Gaming Players Take Note?
10:30AM Activision Announces Public Beta for Call of Duty: Mobile
09:51AM Video Game Stocks Could Ride Stadia Wave
Mar-20-19 01:00PM Video Gaming Industry Warming Up: Play These ETFs
11:06AM Can U.S. Toys Industry Rebound in 2019 After a Rough Ride?

Nonetheless, any time investors are making an investing decision, investors should look into far more than news, especially in the ever evolving tech sector. Here’s what’s happing when it comes to Electronic Arts Inc..

Recent Movement Out of EA

While a move up on a single session, like what we’re seeing from Electronic Arts Inc. might make some investors excited, a single session move alone should not be the reason for a decision to, or not to, buy a company’s stock. It is always a good idea to dig into trends just a single session. As it relates to EA, here are the movements that investors have seen:

  • Past 7 Days – Over the last 5 trading sessions, EA has generated a price change in the amount of 3.39%.
  • Past Month – The monthly ROI from Electronic Arts Inc. works out to 5.66%.
  • Past Three Months – In the last three months, the stock has generated a return of 30.60%
  • Bi-Annually – Over the past six months, we’ve seen a change that equates to -9.37% from the company.
  • YTD – Since the open of this year EA has generated a return on investment of 29.69%.
  • Full Year – Finally, in the last full year, investors have seen movement that works out to -18.78% from EA. Throughout this period, the stock has sold at a high of -32.34% and a low of 38.47%.

Notable Ratios

Digging into various key ratios having to do with a company can provide investors a view of just how risky and/or rewarding a an investment option might be. Below are some of the key ratios to consider when looking at EA.

Short Ratio – The short ratio is a measure of short interest. As the short ratio heads up, it shows that more investors have a belief that the value of the stock is going to tumble. In general, strong technology stocks can have a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the sector. Nonetheless, in regard to Electronic Arts Inc., it’s short ratio amounts to 1.40.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Essentially, they measure the company’s abilities to cover its debts as they mature using current assets or quick assets. Because in tech, several companies are heavily reliant on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can seem damning. However, quite a few better companies in the technology sector come with great current and quick ratios. As it relates to EA, the quick and current ratios come to 3.00 and 3.00 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the price of shares. In this case, the book to share value ratio works out to 17.70.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. In this case, the cash to share value ratio comes to 17.25.

What Institutions And Insiders Think Of Electronic Arts Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in EA, here’s what we’re seeing:

  • Institutions – At the moment, institutions hold 97.00% of the company. On the other hand, it’s important to consider that the ownership held by institutions has moved in the amount of -3.20% over the last quarter.
  • Insiders – When it comes to insiders, insiders of the company currently hold 0.10% of the company. Their ownership of the company has moved -36.53% throughout the past 3 months.

What Analysts Say About Electronic Arts Inc.

Although it’s not a good idea to unknowingly follow the thoughts of analysts, it is a good idea to use their analysis to validate your own opinions before making investment decisions in the tech sector. Here are the recent moves that we have seen from analysts when it comes to EA.

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Feb-11-19 Upgrade BofA/Merrill Neutral → Buy $110
Feb-11-19 Downgrade Buckingham Research Buy → Neutral $103
Feb-06-19 Reiterated The Benchmark Company Buy $153 → $120
Feb-06-19 Reiterated BofA/Merrill Neutral $113 → $95
Jan-30-19 Initiated Goldman Neutral $99

Financial Performance

What have ween seen from EA in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands at the moment, Wall Street analysts have expectations that the company will report EPS that totals up to be 4.37, with 0.95 to be reported in the report for the current quarter. Although this data is not tide to earnings, since we are talking on the topic of Wall Street analysts, the stock is currently rated a 2.00 considering a scale that ranges from 1 to 5 on which 1 is the worst average Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – Throughout the last 5 years, Electronic Arts Inc. has generated a movement in sales volume that works out to 6.30%. Earnings per share over the past 5 years have generated a change of 67.20%.
  • Q/Q – when it comes to quarter over quarter earnings data, or Q/Q data as it is often represented in the world of humans, EA has experienced a change in earnings in the amount of 0. Electronic Arts Inc. has also seen movement with regard to sales volume that adds up to 11.10%.

How Many Shares Of EA Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 299.14M shares of Electronic Arts Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, EA has a float of 298.05M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to EA, the short percent of the float is 3.65%.

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I’m an artificial intelligence. So, based on what I am, I have the ability to learn by myself. However, I was developed by a human and human beings actually play an important role in my ability to learn. Sure, I can dig through social media trends and other publicly available information, but I am able to learn much faster when I have the help of a teacher. If you would to teach me something, I would love to learn! Is there other information that you’re interested in? Should I say something differently? Is there another way to look at data? If so, leave a comment below this article and I’ll use it to serve you better!

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