EA stock: buy or sell?
May 21st, 2019
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, personal computers, mobile phones, and tablets worldwide.
Should I buy EA stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to define your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Electronic Arts stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Electronic Arts stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 15 ratings published for EA stock in the last 30 days. The general sentiment of these ratings is bullish for EA stock, with 12 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-8||Credit Suisse Group||n/a||Outperform|
|2019-4-3||Piper Jaffray Companies||n/a||Overweight|
|2019-3-19||Morgan Stanley||Equal Weight||Equal Weight|
|2019-2-6||Robert W. Baird||n/a||n/a|
|2019-2-6||Piper Jaffray Companies||n/a||Overweight|
|2019-2-6||Credit Suisse Group||n/a||Outperform|
|2019-2-6||Bank of America||n/a||Neutral|
EA stock analysis
Electronic Arts shares broke up the SMA line of 100 days today and closed at $95.65.
Electronic Arts shares broke up the SMA line of 100 days today and closed at $95.65. EA is soaring again after a 6.80% correction from its last top on Thursday at $99.05. Since March when SMA50d and SMA100d crossed up, EA price slipped $-0.07 per share (-0.07%).
Electronic Arts depreciated a disappointing -1.66% this week. By mid April EA plummed a dreadful -9.33% in just one week.
Observing the weekly chart, price is in a simple uptrend, tested $89.91 level and now climbing back aiming its last top at $108.80. Since late August 2018, when EA stock price broke down the 40-weeks moving avarage line, it slid $-33.32 per share (-25.84%). Stocks under the 40-weeks moving average line are usually not recommended for average traders. Far behind is the all-time high Electronic Arts recorded early July and since then the price is -36.76% below that top.
EA stock price history
EA stock went public on September 20th, 1989 with a price of $0.521. Since then, EA stock surged a 18,294.20%, with an average of 630.80% per year. If you had invested $1,000 in EA stock in 1989, it would worth $182,942.00 today.
1: Adjusted price after possible price splits or reverse-splits.
EA stock historical price chart
EA stock reached all-time highs on July with a price of $151.26.
EA stock price target is $101.80How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' EA stock price predictions in the hope that they will be met as they may be wrong and not met. We have 15 price predictions for Electronic Arts stock published in the last 30 days:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-5-8||UBS Group||Raises Target||n/a||$120.00||-|
|2019-5-8||Credit Suisse Group||Reiterates||$110.00||$115.00||4.5%|
|2019-5-8||Barclays||Set Price Target||n/a||$102.00||-|
|2019-4-3||Piper Jaffray Companies||Reiterates||$111.00||$114.00||2.7%|
|2019-3-8||SunTrust Banks||Raises Target||n/a||$107.00||-|
|2019-3-19||Morgan Stanley||Raises Target||$80.00||$88.00||10%|
|2019-2-6||Robert W. Baird||Lowers Target||$154.00||$90.00||-41.6%|
|2019-2-6||Piper Jaffray Companies||Reiterates||n/a||$87.00||-|
|2019-2-6||Credit Suisse Group||Reiterates||$120.00||$106.00||-11.7%|
|2019-2-6||Bank of America||Lowers Target||$113.00||$95.00||-15.9%|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter posting its last earnings report on May 7th, Electronic Arts appreciated a slightly good 3.15%. As soon as we get its posted EPS from the earnings report, we will extend this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Electronic Arts annual sales rose a very good 6.30% to $5,150.00 M dollars from $4,845.00 marked in 2017. When comparing 2018 vs 2017, slightly worse, profit margin (that is, the net income divided by revenues) remained stable a 0.29% to 20.25%. Electronic Arts fiscal year ends in March, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Electronic Arts TTM sales up to were $3,712.00 and income $810.00 million dollars. When comparing this TTM figures with the last reported annuality, we can review Electronic Arts business evolution since March 2018: Annual revenues up to , compared to lastest yearly report, plunged a scary -27.92%. On the other hand, profit margin (net income/sales) appreciated at 20.25%.
|2013||$3,800 M||-||$98 M2.6%||-|
|2014||$3,570 M||-6.05%||$8.00 M0.2%||-91.84%|
|2015||$4,515 M||26.47%||$875 M19.4%||10,837.50%|
|2016||$4,396 M||-2.64%||$1,156 M26.3%||32.11%|
|2017||$4,845 M||10.21%||$967 M20.0%||-16.35%|
|2018||$5,150 M||6.30%||$1,043 M20.3%||7.86%|
|TTM||$3,712 M||-27.92%||$810 M21.8%||-22.34%|
Quarterly financial resultsElectronic Arts posted million in sales for 2019-Q1, a -100.00% decline compared to previous quarter. Reported quarter income marked M with a profit margin of . Profit margin remained stable a 0.00% compared to previous quarter when profit margin was 20.33%. When comparing revenues to same quarter last year, Electronic Arts sales marked a hair-raising correction and plummed a -100.00%.
|2017-Q1||$1,510 M||-||$566 M37.5%||-|
|2017-Q2||$1,430 M||-5.30%||$644 M45.0%||13.78%|
|2017-Q3||$956 M||-33.15%||$-22 M-2.3%||-103.42%|
|2017-Q4||$1,160 M||21.34%||$-186 M-16.0%||745.45%|
|2018-Q1||$1,582 M||36.38%||$607 M38.4%||-426.34%|
|2018-Q2||$1,137 M||-28.13%||$293 M25.8%||-51.73%|
|2018-Q3||$1,286 M||13.10%||$255 M19.8%||-12.97%|
|2018-Q4||$1,289 M||0.23%||$262 M20.3%||2.75%|
Electronic Arts ownershipWhen you are planning to invest in shares of a company, it's worth to check its ownership structure.
Electronic Arts shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.51% of all shares.
Bearish positions for EA stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related companies:
|Market cap||$28.7 B||$33.4 B||$241.4 B||$1.3 B||$972.1 B|
|Total shares||299.6 M||766.0 M||1,800.0 M||145.2 M||7,660.0 M|
|Float shares||297.5 M||757.5 M||1,800.0 M||114.9 M||7,560.0 M|
|- Institutional holdings (%)||96.7%||91.5%||54.8%||59.1%||74.7%|
|- Insider holdings (%)||0.5%||1.1%||0.2%||20.9%||1.4%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Tuesday, May 21st, 2019|
|Day range||$93.25 - $96.25|
|Average true range||$3.69|
|50d mov avg||$97.13|
|100d mov avg||$94.70|
|200d mov avg||$99.32|
Electronic Arts performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Electronic Arts against Activision Blizzard, Walt Disney, Glu Mobile, Microsoft, PolarityTE, , Take-Two Interactive Software and Zynga in the following table:
Electronic Arts competitorsWe chose a few stocks to conform a list of Electronic Arts competitors to check if you are interested in investing in EA:
- Activision Blizzard (ATVI)
- Walt Disney (DIS)
- Glu Mobile (GLUU)
- Microsoft (MSFT)
- PolarityTE (PTE)
- Take-Two Interactive Software (TTWO)
- Zynga (ZNGA)
Latest EA stock news
- InvestorPlace3 Big Stock Charts for Friday: PPL, Electronic Arts and Tyson FoodsMay 17, 2019
- InvestorPlaceThursday’s Vital Data: Disney, Lyft and Electronic ArtsMay 9, 2019
- InvestorPlaceElectronic Arts Earnings: EA Stock Soars as Q4 Revenue Tops GuidanceMay 7, 2019
- InvestorPlaceHas Electronic Arts Stock Price Hit Its Peak For 2019?April 30, 2019
- Seeking AlphaElectronic Arts Is On Sale And I'm BuyingApril 17, 2019