Electronic Arts (EA) Stock Price, News & Analysis

Company Overview

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.

Key Stats

• Today's Range: $140.46 to $143.39
• 50-Day Range: $140.20 to $151.82
• 52-Week Range: $117.47 to $153.51
• Volume: 1.86 million shs
• Average Volume: 2.11 million shs
• Market Capitalization: $37.40 billion
• P/E Ratio: 30.07
• Dividend Yield: 0.54%
• Price Target: $161.94
• Consensus Rating: Moderate Buy

Electronic Arts Stock Analysis - MarketRank™

Electronic Arts scored higher than 92% of companies evaluated by MarketBeat, and ranked 36th out of 297 stocks in the consumer discretionary sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Electronic Arts has received a consensus rating of Moderate Buy. The company's average rating score is 2.53, and is based on 10 buy ratings, 9 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Electronic Arts has been the subject of 17 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 8.32%

Earnings Growth

Earnings for Electronic Arts are expected to grow by 8.32% in the coming year, from $5.89 to $6.38 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Electronic Arts is 30.07, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 139.60.

Price to Earnings Ratio vs. Sector

The P/E ratio of Electronic Arts is 30.07, which means that it is trading at a more expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 16.32.

Price to Earnings Growth Ratio

Electronic Arts has a PEG Ratio of 1.97. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Electronic Arts has a P/B Ratio of 5.01. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.64% of the float of Electronic Arts has been sold short.

Short Interest Ratio / Days to Cover

Electronic Arts has a short interest ratio ("days to cover") of 3.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Electronic Arts has recently increased by 13.72%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Electronic Arts has a dividend yield of 0.53%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

Electronic Arts does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Electronic Arts is 16.24%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Electronic Arts will have a dividend payout ratio of 11.91% next year. This indicates that Electronic Arts will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.6 / 5
• Environmental Score: -1.18

Percentage of Shares Shorted

2.64% of the float of Electronic Arts has been sold short.

Short Interest Ratio / Days to Cover

Electronic Arts has a short interest ratio ("days to cover") of 3.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Electronic Arts has recently increased by 13.72%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 1.9 / 5
• News Sentiment: 0.38

News Sentiment

Electronic Arts has a news sentiment score of 0.38. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.52 average news sentiment score of Consumer Discretionary companies.

News Coverage This Week

MarketBeat has tracked 45 news articles for Electronic Arts this week, compared to 15 articles on an average week.

Search Interest

Only 3 people have searched for EA on MarketBeat in the last 30 days. This is a decrease of -73% compared to the previous 30 days.

MarketBeat Follows

Only 3 people have added Electronic Arts to their MarketBeat watchlist in the last 30 days. This is a decrease of -67% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Electronic Arts insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $4,183,508.00 in company stock.

Percentage Held by Insiders

Only 0.22% of the stock of Electronic Arts is held by insiders.

Percentage Held by Institutions

90.23% of the stock of Electronic Arts is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

EA Stock Analysis - Frequently Asked Questions

How have EA shares performed this year?

Electronic Arts' stock was trading at $136.81 at the start of the year. Since then, EA shares have increased by 2.9% and is now trading at $140.74.
View the best growth stocks for 2024 here.

How were Electronic Arts' earnings last quarter?

Electronic Arts Inc. (NASDAQ:EA) announced its quarterly earnings data on Tuesday, July, 30th. The game software company reported $0.09 earnings per share for the quarter, beating analysts' consensus estimates of $0.03 by $0.06. The game software company had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.21 billion. Electronic Arts had a trailing twelve-month return on equity of 16.34% and a net margin of 15.77%.

Does Electronic Arts have any subsidiaries?

Electronic Arts subsidiaries include these companies: Industrial Toys, Respawn Entertainment, ESN Social Software, KlickNation, PopCap Games, Firemint, Chillingo, and more.

Who are Electronic Arts' major shareholders?

Electronic Arts' top institutional shareholders include Ninety One UK Ltd (1.61%), Massachusetts Financial Services Co. MA (1.58%), Independent Franchise Partners LLP (1.52%) and Legal & General Group Plc (0.99%). Insiders that own company stock include Kenneth A Moss, Jeff Huber, Richard A Simonson, Andrew Wilson, Laura Miele, Vijayanthimala Singh, Jacob J Schatz, Chris Bruzzo, Stuart Canfield, Eric Charles Kelly, Luis A Ubinas and Blake J Jorgensen.
View institutional ownership trends.

How do I buy shares of Electronic Arts?

Shares of EA stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Electronic Arts own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Electronic Arts investors own include NVIDIA (NVDA), Alibaba Group (BABA), Netflix (NFLX), Activision Blizzard (ATVI), Walt Disney (DIS), Micron Technology (MU) and Advanced Micro Devices (AMD).

Company Calendar

• Last Earnings: 7/30/2024
• Ex-Dividend for 9/18 Dividend: 8/28/2024
• Dividend Payable: 9/18/2024
• Today: 9/19/2024
• Next Earnings (Estimated): 11/06/2024
• Fiscal Year End: 3/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Consumer Discretionary
• Industry: Prepackaged software
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:EA
• CUSIP: 28551210
• CIK: 712515
• Web: www.ea.com
• Phone: (650) 628-1500
• Fax: 650-628-1422
• Employees: 13,700
• Year Founded: 1982

Price Target and Rating

• Average Stock Price Target: $161.94
• High Stock Price Target: $183.00
• Low Stock Price Target: $148.00
• Potential Upside/Downside: +13.2%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.53
• Research Coverage: 19 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $4.68
• Trailing P/E Ratio: 30.45
• Forward P/E Ratio: 24.19
• P/E Growth: 1.97
• Net Income: $1.27 billion
• Net Margins: 15.77%
• Pretax Margin: 19.55%
• Return on Equity: 16.34%
• Return on Assets: 9.28%

Debt

• Debt-to-Equity Ratio: 0.25
• Current Ratio: 1.45
• Quick Ratio: 1.45

Sales & Book Value

• Annual Sales: $7.30 billion
• Price / Sales: 5.19
• Cash Flow: $6.72 per share
• Price / Cash Flow: 21.19
• Book Value: $28.10 per share
• Price / Book: 5.07

Miscellaneous

• Outstanding Shares: 265,735,000
• Free Float: 265,150,000
• Market Cap: $37.87 billion
• Optionable: Optionable
• Beta: 0.79