Activision Blizzard (ATVI) Trading Up 7% Following Better-Than-Expected Earnings

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Activision Blizzard, Inc. (NASDAQ:ATVI)’s share price was up 7% on Wednesday following a stronger than expected earnings report. The stock traded as high as $45.33 and last traded at $44.57. Approximately 51,692,901 shares were traded during mid-day trading, an increase of 282% from the average daily volume of 13,541,875 shares. The stock had previously closed at $41.67.

The company reported $1.29 EPS for the quarter, beating analysts’ consensus estimates of $1.21 by $0.08. The company had revenue of $2.84 billion during the quarter, compared to analysts’ expectations of $3.04 billion. Activision Blizzard had a return on equity of 15.44% and a net margin of 8.07%. Activision Blizzard’s revenue for the quarter was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.94 earnings per share.

The company also recently disclosed an annual dividend, which will be paid on Thursday, May 9th. Investors of record on Thursday, March 28th will be given a dividend of $0.37 per share. This represents a yield of 0.83%. The ex-dividend date is Wednesday, March 27th. This is a boost from Activision Blizzard’s previous annual dividend of $0.34. Activision Blizzard’s dividend payout ratio is 16.59%.

A number of analysts recently commented on ATVI shares. BidaskClub cut Activision Blizzard from a “sell” rating to a “strong sell” rating in a research report on Friday, November 16th. Oppenheimer reduced their price target on Activision Blizzard from $87.00 to $68.00 and set an “outperform” rating for the company in a research report on Friday, November 9th. Morgan Stanley upped their price target on Activision Blizzard from $60.00 to $72.00 and gave the stock an “overweight” rating in a research report on Thursday, January 24th. Jefferies Financial Group set a $85.00 price target on Activision Blizzard and gave the stock a “buy” rating in a research report on Saturday, November 10th. Finally, Wedbush set a $64.00 price target on Activision Blizzard and gave the stock an “outperform” rating in a research report on Wednesday, January 23rd. Four investment analysts have rated the stock with a sell rating, seven have issued a hold rating, nineteen have issued a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $64.44.

Large investors have recently added to or reduced their stakes in the stock. Capital Investment Advisory Services LLC purchased a new stake in shares of Activision Blizzard during the fourth quarter worth about $37,000. Lindbrook Capital LLC purchased a new stake in shares of Activision Blizzard during the fourth quarter worth about $37,000. IMS Capital Management purchased a new stake in shares of Activision Blizzard during the third quarter worth about $69,000. Pearl River Capital LLC purchased a new stake in shares of Activision Blizzard during the fourth quarter worth about $41,000. Finally, Ipswich Investment Management Co. Inc. purchased a new stake in shares of Activision Blizzard during the fourth quarter worth about $45,000. Hedge funds and other institutional investors own 90.62% of the company’s stock.

The company has a quick ratio of 2.01, a current ratio of 2.09 and a debt-to-equity ratio of 0.25. The stock has a market capitalization of $30.61 billion, a PE ratio of 21.74, a PEG ratio of 1.57 and a beta of 0.92.

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About Activision Blizzard (NASDAQ:ATVI)

Activision Blizzard, Inc develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc; Blizzard Entertainment, Inc; and King Digital Entertainment. The company develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content.

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