The time has not yet come to remove your chips from the table: Activision Blizzard Inc. (ATVI)

Activision Blizzard Inc. (NASDAQ: ATVI) stock fell -0.49% on Friday to $80.51 against a previous-day closing price of $80.91. With 2.63 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.68 million shares. During the session, the Electronic Gaming & Multimedia company that operates in wider Communication Services sector, reached to the highest price of $81.13 whereas the lowest price it dropped to was $80.50. The 52-week range on ATVI shows that it touched its highest point at $86.90 and its lowest point at $56.40 during that stretch. It currently has a 1-year price target of $93.80. With its current market cap of 63.12 billion, ATVI has annualized dividend of $0.47 while the current yield stands at 0.58%. Beta for the stock currently stands at 0.51.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ATVI was down-trending over the past week, with a drop of -0.19%, but this was up by 5.99% over a month. Three-month performance surged to 3.92% while six-month performance fell -1.21%. The stock lost -5.28% in the past year, while it has gained 21.01% so far this year. A look at the trailing 12-month EPS for ATVI yields 2.39 with Next year EPS estimates of 3.82. For the next quarter, that number is 0.51. This implies an EPS growth rate of 21.90% for this year and 35.16% for next year. EPS is expected to grow by 10.85% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.00%.

Float and Shares Shorts:

At present, 782.00 million ATVI shares are outstanding with a float of 775.57 million shares on hand for trading. On Jul 14, 2022, short shares totaled 17.75 million, which was 2.27% higher than short shares on Jun 14, 2022. In addition to Mr. Robert A. Kotick as the firm’s CEO & Director, Mr. Daniel I. Alegre serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 84.64% of ATVI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 89.37% of ATVI, in contrast to 39.38% held by mutual funds. Shares owned by individuals account for 38.83%. As the largest shareholder in ATVI with 8.23% of the stake, Berkshire Hathaway, Inc. holds 64,315,222 shares worth 64,315,222. A second-largest stockholder of ATVI, The Vanguard Group, Inc., holds 60,398,914 shares, controlling over 7.73% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ATVI, holding 39,109,092 shares or 5.00% stake. With a 2.65% stake in ATVI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 20,740,541 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.21% of ATVI stock, is the second-largest Mutual Fund holder. It holds 17,307,676 shares valued at 1.35 billion. Invesco QQQ Trust holds 1.45% of the stake in ATVI, owning 11,324,902 shares worth 881.76 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ATVI since 26 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ATVI analysts setting a high price target of $100.00 and a low target of $82.00, the average target price over the next 12 months is $93.65. Based on these targets, ATVI could surge 24.21% to reach the target high and rise by 1.85% to reach the target low. Reaching the average price target will result in a growth of 16.32% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ATVI will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $3.61 being high and $2.36 being low. For ATVI, this leads to a yearly average estimate of $2.87. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Activision Blizzard Inc. surprised analysts by -$0.00 when it reported $0.48 EPS against a consensus estimate of $0.48. The surprise factor in the prior quarter was -$0.07. Based on analyst estimates, the high estimate for the next quarter is $0.66 and the low estimate is $0.37. The average estimate for the next quarter is thus $0.51.

Dividends & Yield:

In terms of dividends, ATVI has a current ratio of $0.47, which is $0.47 over the trailing 12-months, while a dividend of $0.39 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and ATVI currently yields $0.58. In the past year, ATVI’s dividend yield has been $0.58, but when looking at the stock over the past five years, its yield has been $0.58.

Summary of Insider Activity:

Insiders traded ATVI stock several times over the past three months with 8 Buys and 3 Sells. In these transactions, 25,664 shares were bought while 5,919 shares were sold. The number of buy transactions has increased to 39 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 203,108 while 62,284 shares were sold.

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