Over the past 12 fiscal quarters, Activision Blizzard, Inc. (NASDAQ:ATVI) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 2 quarters (16%), whereas at 0 occasion EPS met analyst expectations. Shares of Activision Blizzard, Inc. (ATVI) have dropped -25.9% since the company’s Mar-19 earnings report.ATVI last reported earnings on November 08, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.52 per share, -87% change on the same period last year. That was better than consensus for $0.5. Revenue for the recent quarter stood at $1.66 billion, down -13% on last year and below the $1.66 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.4 billion to $1.81 billion, which should be compared with $1.54 billion generated last year. EPS is seen in a range of $0.4 to $0.66, against the $0.64 reported a year ago.
ATVI’s 50 day simple moving average (SMA 50) price is $51.68 and its 200-day simple moving average (SMA 200) price is $68. The company’s stock currently has a total float of 754.25M shares. Its weekly volatility is hovering around 3.93% and felt 4.17% volatility in price over a month. On the upside, the share price will test short term resistance at around $47.43. On a downside, the stock is likely to find some support, which begins at $45.06. The failure to get near-term support could push it to $43.58.
Separately, it has been reported that multiple insider activity took place at Activision Blizzard, Inc. (ATVI). CEO, King Zacconi Riccardo sold 19,761 shares for $14,083 in transaction occurred on 2018/08/20. After making this transaction, the CEO, King owns a direct stake of 1,357,581 shares, worth $655,423, as per the last closing price. On 2018/05/17 Zacconi Riccardo, CEO, King at ATVI, dumped 19,761 shares at an average price of $70.49 per share. The selling total is valued at $982,925.
Chief Corporate Officer, Durkin Dennis M had divested 71,488 shares for $122,597 through a trade on 2018/03/14. Following this activity, the insider holds 5,408,067 shares worth $5,705,664 as of recent close. Wall Street’s most bullish Activision Blizzard, Inc. (NASDAQ:ATVI) analysts are predicting the share price to blow past $93 per share during the next 12 months. The current median share price forecast by them is $66, suggesting that the stock could increase 41.81% in that time frame. The average price target of $66.44 calls for a nearly 42.76% increase in the stock price.
It had seen a change in price target from analysts at The Benchmark Company, who reiterated the stock at Buy on January 11 but moved PT from $93 to $87. Analysts at Stephens, started covering the stock on January 11 with a Overweight rating. Brokerage firm Needham, looks cautious as they stick to prior recommendation of Buy, in a call on December 14. However, they did change the target price from $90 to $60.
When looking at valuations, Activision Blizzard, Inc. (ATVI) has a cheap P/E of 29.51x as compared to industry average of 36.64x. Moreover, it trades for 17.34 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.33x price/book and 5.47x price/sales. Compared to others, Activision Blizzard, Inc. is in a different league with regards to profitability, having net margins of 8.1%. To put some perspective around this, the industry’s average net margin is 3.2%. ATVI’s ROE is 5.7%, which is also considerably worse than the industry’s ROE of 19.13%. It’s also very liquid in the near term, with a current ratio of 2.1. The stock has a debt/capital of 0.25.
Activision Blizzard, Inc. (NASDAQ:ATVI) recently claimed $39.18B as the price has approached $46.54. There came a -9.37% decline with the closing bell on Friday. The stock remained range bound between $44.47 and $46.84. Trading activity significantly improved as the volume at ready counter increased to 35,427,160 shares versus 10,351,285 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 11,968,200 shares. The stock is now 6.47% above against its bear-market low of $43.71 on December 26, 2018. It has retreated -81.95% since it’s 52-week high of $84.68 reached in October. Now the market price is down -30.36% on the year and down -0.06% YTD.