Electronic Arts Inc Stock Underperforms

Electronic Arts stock

Several equities analysts recently weighed in on the stock. The Goldman Sachs Group raised their price objective on shares of Electronic Arts from $125.00 to $133.00 and gave the company a “neutral” rating in a research report on Thursday, June 9th. Truist Financial cut their price objective on shares of Electronic Arts to $154.00 and set a “buy” rating on the stock in a research report https://dotbig.com/markets/stocks/EA/ on Sunday, July 31st. StockNews.com raised shares of Electronic Arts from a “hold” rating to a “buy” rating in a research report on Wednesday, June 22nd. Finally, TheStreet upgraded Electronic Arts from a “c+” rating to a “b” rating in a report on Friday, May 20th. Four research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock.

  • The Electronic Arts 52-week low stock price is 109.24, which is 14.7% below the current share price.
  • This is not an offer, solicitation of an offer or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered.
  • I wrote this article myself, and it expresses my own opinions.
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  • However, its clear that EA needs to go beyond sports if its to truly thrive.

EA joins hundreds of other stocks in reporting earnings results this week. Electronic Arts’ stock is owned by a number of institutional and retail investors. Top institutional shareholders include Public Investment Fund (5.76%), State Street Corp (4.72%), Massachusetts Financial Services Co. MA (4.13%), Northern Trust Corp (1.13%), Legal & General Group Plc (0.90%) and Macquarie Group Ltd. (0.90%). Electronic Arts has been the subject of 10 research reports in the past 90 days, demonstrating strong analyst interest in this stock. Intraday Data provided by FACTSET and subject to terms of use.

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The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 21st. Investors of record on Wednesday, August 31st will be given a $0.19 dividend. The ex-dividend date of this dividend is Tuesday, August 30th.

Electronic Arts stock

It will also benefit from the recent acquisitions of Playdemic, Codemasters, Metalhead Software, and Glu Mobile GLUU . The Netflix of games has been around for quite a few years.

Though gaming faces some headwinds going into a recession, EA remains one of the better publicly-traded deals for investors eager to get into gaming while it’s down and out. Electronic Arts revenue is segmented into products and services. "Products" EA stock price refers to initial sales from EA titles, while services include any purchases made after (for players to get access to additional in-game content). Currently, EA generates around 60% of its revenue from services and 33% from products.

Electronic Arts Inc Stock Underperforms Wednesday When Compared To Competitors

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, https://dotbig.com/ mobile phones, and tablets worldwide. The company licenses its games to third parties to distribute and host its games.

Electronic Arts stock

Based on earnings estimates, Electronic Arts will have a dividend payout ratio of 12.56% next year. This indicates that Electronic Arts will be able to sustain or increase its dividend. The company’s average rating score is 2.79, and is based on 15 buy ratings, 4 hold ratings, and no sell ratings. InteractiveCorp., Integral Ad Science, and LiveRamp Holdings. The word on https://www.clinicaveterinaria.org/wordpress/forums/topic/giochi-animaleschi/#post-21261 The Street in general, suggests a Moderate Buy analyst consensus rating for Electronic Arts with a $151.00 average price target, which is a 15.1% up… Shares of popular video-game developer Electronic Arts haven’t gone anywhere over the past few years. Amid the broader video game market consolidation, EA remains a very attractive dance partner for a tech or media gi…

Earnings Data Q3 2022

This payout ratio is at a healthy, sustainable level, below 75%. Electronic Arts has a dividend yield of 0.58%, which is in the bottom 25% of all stocks DotBig that pay dividends. Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities.

About Electronic Arts Ea

As a result of licensing agreements, EA holds virtually a complete monopoly in certain sports games. The gaming market was valued at $229B in 2021, with EA taking 3% of the market. Through 2028, the market is still expected to grow at a 13.2% CAGR. Shares of popular video-game developer Electronic Arts havent gone anywhere over the past few years. Though gaming faces some headwinds going into a recession, EA remains one of the better publicly-traded deals for investors eager to get into gaming while its down and out. We estimate Electronic Arts’ valuation of $152 per share, reflecting a 15% upside from its current market price near $133.

Despite headwinds facing EA, its ability to diversify its portfolio and loyal fanbase put the company in a good position to endure future challenges. However, it might be better for investors to wait for better buy-in opportunities as the stock is currently richly valued. As market consolidation continues, pure-play gaming stocks will be fewer and farther between as big tech looks to change the business forever. Electronic Arts updated its second DotBig quarter 2023 earnings guidance on Tuesday, August, 9th. The company provided EPS guidance of $1.25-$1.35 for the period, compared to the consensus EPS estimate of $1.49. The company issued revenue guidance of $1.73 billion-$1.77 billion, compared to the consensus revenue estimate of $1.87 billion. According to analysts’ consensus price target of $153.91, Electronic Arts has a forecasted upside of 21.4% from its current price of $126.73.

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One share of EA stock can currently be purchased for approximately $128.12. MarketBeat has tracked 2 reddit mentions for Electronic Arts this week, compared to 3 mentions on an average week. Short interest in Electronic Arts has recently decreased by 14.80%, indicating that investor sentiment is improving significantly. Please log in to your account or https://dotbig.com/ sign up in order to add this asset to your watchlist. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. While EA stock looks like it has more room for growth, it is helpful to see how Electronic Arts’ Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.

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Kevin Herr

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