Activision stock: buy or sell?

ATVI stock price: $43.45 -0.37% At close on May 21st, 2019

Updated on:
May 21st, 2019

1

After sliding a frightening -6.37% yesterday, the videogaming company closed today at $43.45 and declined an ugly -0.37%. Tuesday was the 3rd red session in a row, sliding in full a -8.30%.

Activision Blizzard, Inc. develops and publishes games for video game consoles, personal computers (PC), mobile devices, and online social platforms.

Should I buy Activision stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Activision Blizzard stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Activision Blizzard stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 15 ratings published for ATVI stock in the last month.

The general sentiment of these ratings is bullish for ATVI stock, with 11 positive ratings.
Is ATVI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-22Piper Jaffray CompaniesPositiveOverweight
2019-4-1Wedbushn/aOutperform
2019-2-19Stifel Nicolausn/aBuy
2019-2-15BMO Capital Marketsn/aMarket Perform
2019-2-14Jefferies Financial Groupn/aBuy
2019-2-14Barclaysn/aBuy
2019-2-13WedbushOutperformOutperform
2019-2-13SunTrust BanksAverageBuy
2019-2-13Needham & Company LLCBuyBuy
2019-2-13Morgan StanleyOverweightOverweight
2019-2-13KeyCorpOverweightSell
2019-2-13Credit Suisse GroupOutperformOutperform
2019-2-13Bank of AmericaNeutralNeutral
2019-2-11Benchmarkn/aBuy
2019-1-30Goldman Sachs Groupn/aNeutral

Activision stock analysis

Daily outlook

After sliding a frightening -6.37% yesterday, the videogaming company closed today at $43.45 and declined an ugly -0.37%.

After sliding a frightening -6.37% yesterday, the videogaming company closed today at $43.45 and declined an ugly -0.37%. Since SMA50d and SMA100d crossed up on May 9th, ATVI price slid a -7.20%.

ATVI stock chart (daily)

Weekly outlook

Activision shares plunged -6.34% this week, ending at $43.45. Late April ATVI climbed an outstanding 5.90% in just one week.

Weekly chart tells us that price is in a simple uptrend, tested $43.17 level and now climbing back aiming its last top at $49.83. Since price and 40-weeks moving average lines crossed down by mid October 2018, ATVI fell $-33.85 per share (-43.79%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high the "Call of Duty" publisher hit early October and since then the price is -48.28% below that top.

ATVI stock chart (weekly)

Activision stock price history

Activision IPO was on October 25th, 1993 at $1.13 per share1. Since then, ATVI stock surged a 3,745.10%, with a yearly average of 149.80%. If you had invested $1,000 in Activision stock in 1993, it would worth $37,451.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Activision stock historical price chart

ATVI stock reached all-time highs on October with a price of $84.01.

Activision stock price target is $52.70

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 14 price forecasts for Activision Blizzard stock:
ATVI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-4-1WedbushReiteratesn/a$60.00-
2019-2-19Stifel NicolausLowers Target$57.00$52.00-8.8%
2019-2-15BMO Capital MarketsLowers Target$45.00$40.00-11.1%
2019-2-14Jefferies Financial GroupSet Price Targetn/a$75.00-
2019-2-14BarclaysSet Price Targetn/a$55.00-
2019-2-13WedbushReiterates$64.00$56.00-12.5%
2019-2-13SunTrust BanksLowers Target$49.00$2.25-95.4%
2019-2-13Needham & Company LLCReiterates$60.00$50.00-16.7%
2019-2-13Morgan StanleyLowers Target$60.00$55.00-8.3%
2019-2-13KeyCorpReiterates$64.00$57.00-10.9%
2019-2-13Credit Suisse GroupReiterates$70.00$64.00-8.6%
2019-2-13Bank of AmericaReiterates$58.00$54.00-6.9%
2019-2-11BenchmarkLowers Target$87.00$68.00-21.8%
2019-1-30Goldman Sachs GroupInitiatesn/a$50.00-
(in average)$61.40$52.70-14.0%
Moving in a range from $75.00 and $2.25, the price forecast for Activision stock is $52.70. In average, analysts' outlook on ATVI price forecast is negative, reducing the target by a -14.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Activision Blizzard matched the forecasts of the experts and posted an EPS of $1.24 per share. Unfortunately, reported EPS is not yet available in our database.
ATVI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.32n/a
2017-Q32017-11-020.490.622.4%
2017-Q42018-02-080.930.941.1%
2018-Q12018-05-030.290.3417.2%
2018-Q22018-08-020.30.5686.7%
2018-Q32018-11-080.440.476.8%
2018-Q42019-02-121.211.242.5%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Activision Blizzard annual revenues soared a more than good 6.88% to $7,500.00 million dollars from $7,017.00 marked in 2017. Instead, its income margin (compared to sales) rocketed to 24.17%, that is $1,813.00 million.

ATVI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$4,580 M-$987 M21.6%-
2014$4,408 M-3.76%$835 M18.9%-15.40%
2015$4,664 M5.81%$892 M19.1%6.83%
2016$6,608 M41.68%$966 M14.6%8.30%
2017$7,017 M6.19%$273 M3.9%-71.74%
2018$7,500 M6.88%$1,813 M24.2%564.10%

Quarterly financial results

Activision Blizzard posted $2,381.00 million in revenues for 2018-Q4, a 57.47% up compared to previous quarter. Reported quarter income marked $651.00 M with a profit margin of 27.34%. Profit margin skyrocketed a 10.15% compared to previous quarter when profit margin was 17.20%. When comparing sales to same quarter last year, Activision Blizzard sales marked an extraordinary gain and boosted a 16.54%.
ATVI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,630 M-$243 M14.9%-
2017-Q3$1,618 M-0.74%$188 M11.6%-22.63%
2017-Q4$2,043 M26.27%$-585 M-28.6%-411.17%
2018-Q1$1,965 M-3.82%$500 M25.4%-185.47%
2018-Q2$1,641 M-16.49%$402 M24.5%-19.60%
2018-Q3$1,512 M-7.86%$260 M17.2%-35.32%
2018-Q4$2,381 M57.47%$651 M27.3%150.38%
2019-Q1$1,825 M-23.35%$447 M24.5%-31.34%

Activision Blizzard ownership

When you are planning to buy a stock, it's worth to have a look its ownership structure.

Activision Blizzard shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.15% of all shares.

Bearish positions for ATVI stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Activision Blizzard:

ATVIEAGLUUMSFTPTE
Market cap$33.3 B$28.7 B$1.3 B$972.1 B$167.3 M
Total shares766.0 M299.6 M145.2 M7,660.0 M24.2 M
Float shares757.5 M297.5 M114.9 M7,560.0 M14.0 M
  - Institutional holdings (%)91.5%96.7%59.1%74.7%55.9%
  - Insider holdings (%)1.1%0.5%20.9%1.4%52.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Activision summary

Tuesday, May 21st, 2019
Open$43.97
Close$43.45
Day range$43.40 - $44.06
Previous close$43.61
Session gain-0.37%
Average true range$1.93
50d mov avg$46.27
100d mov avg$45.55
200d mov avg$55.63
Daily pattern
Weekly pattern lb01a

Activision Blizzard performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Activision Blizzard to Electronic Arts, Glu Mobile, Microsoft, PolarityTE, and Take-Two Interactive Software:
Stock3m6m12m
ATVIActivision Blizza...5.54%-12.49%-38.71%
EAElectronic Arts-0.28%15.70%-27.46%
GLUUGlu Mobile-2.46%28.95%56.73%
MSFTMicrosoft14.78%24.11%31.11%
PTEPolarityTE-44.41%-53.62%-72.70%
SNE9.00%5.05%12.74%
TTWOTake-Two Interact...19.16%-1.66%-7.38%

Activision Blizzard competitors

One check before trading any stock is to review a list of its competitors, in this case for Activision Blizzard. We chose 6 companies as Activision Blizzard competitors as they are in the same industry or have similar market objectives.

Latest Activision stock news