Activision Blizzard, Inc. [ATVI] is following upward trend in the market concluded with the last trading session. The shares of the Technology sector company has a current value of $46.05 after ATVI shares went up by 2.13% during the last trading session. One of the reasons why Technology stocks may go bullish is increased momentum in the press.
Activision Blizzard, Inc. [NASDAQ:ATVI]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Activision Blizzard, Inc. [ATVI] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give ATVI an Outperform rating. Its stock price has been found in the range of 39.85 to 84.68. This is compared to its latest closing price of $45.09.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Activision Blizzard, Inc. [ATVI] is sitting at 2.06. This is compared to 1 month ago, when its average rating was 2.03.
For the quarter ending in Mar-19 Activision Blizzard, Inc. [ATVI] generated $1.26 billion in sales. That’s 1.29% higher than the average estimate of $1.24 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Thu 1 Aug (In 48 Days).
Fundamental Analysis of Activision Blizzard, Inc. [ATVI]
Now let’s turn to look at profitability: with a current Operating Margin for Activision Blizzard, Inc. [ATVI] sitting at +26.42 and its Gross Margin at +66.41, this company’s Net Margin is now 23.90%. These measurements indicate that Activision Blizzard, Inc. [ATVI] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 14.20, and its Return on Invested Capital has reached 11.40%. Its Return on Equity is 17.42, and its Return on Assets is 9.93. These metrics all suggest that Activision Blizzard, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Activision Blizzard, Inc. [ATVI] has generated a Total Debt to Total Equity ratio of 23.52. Similarly, its Total Debt to Total Capital is 19.04, while its Total Debt to Total Assets stands at 14.98. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 23.52, and its Long-Term Debt to Total Capital is 19.04. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 11.15 and its Total Debt to EBITDA Value is 0.90. The Enterprise Value to Sales for this firm is now 4.53, and its Total Debt to Enterprise Value stands at 0.08. Activision Blizzard, Inc. [ATVI] has a Price to Book Ratio of 3.13, a Price to Cash Flow Ratio of 20.06 and P/E Ratio of 20.19. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Activision Blizzard, Inc. [ATVI] earns $756,869 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.67 and its Total Asset Turnover is 0.41. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.29 and its Current Ratio is 2.31. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Activision Blizzard, Inc. [ATVI] has 764.00M shares outstanding, amounting to a total market cap of $35.18B. Its stock price has been found in the range of 39.85 to 84.68. At its current price, it has moved down by -45.62% from its 52-week high, and it has moved up 15.56% from its 52-week low.
This stock’s Beta value is currently 0.88, which indicates that it is 2.80% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.28. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Activision Blizzard, Inc. [ATVI] a Reliable Buy?
Shares of Activision Blizzard, Inc. [ATVI], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.