EA stock: buy or sell?

EA stock price: $95.65 3.19% At close on May 21st, 2019

Updated on:
May 21st, 2019

1

Electronic Arts broke up the SMA line of 100d today and closed at $95.65, jumped a 3.19%.

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.

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 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.
Is EA a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-8UBS Groupn/aBuy
2019-5-8Oppenheimern/aOutperform
2019-5-8Credit Suisse Groupn/aOutperform
2019-5-8Barclaysn/aBuy
2019-4-3Piper Jaffray Companiesn/aOverweight
2019-3-8SunTrust Banksn/aBuy
2019-3-19Morgan StanleyEqual WeightEqual Weight
2019-2-6Wedbushn/aOutperform
2019-2-6StephensTop PickOverweight
2019-2-6Robert W. Bairdn/an/a
2019-2-6Piper Jaffray Companiesn/aOverweight
2019-2-6Oppenheimern/aOutperform
2019-2-6Credit Suisse Groupn/aOutperform
2019-2-6Benchmarkn/aBuy
2019-2-6Bank of American/aNeutral

EA stock analysis

Daily outlook

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%).

EA stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $101.80

How 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:
EA stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-8UBS GroupRaises Targetn/a$120.00-
2019-5-8OppenheimerRaises Target$88.00$110.0025%
2019-5-8Credit Suisse GroupReiterates$110.00$115.004.5%
2019-5-8BarclaysSet Price Targetn/a$102.00-
2019-4-3Piper Jaffray CompaniesReiterates$111.00$114.002.7%
2019-3-8SunTrust BanksRaises Targetn/a$107.00-
2019-3-19Morgan StanleyRaises Target$80.00$88.0010%
2019-2-6WedbushLowers Target$111.00$95.00-14.4%
2019-2-6StephensLowers Target$125.00$95.00-24%
2019-2-6Robert W. BairdLowers Target$154.00$90.00-41.6%
2019-2-6Piper Jaffray CompaniesReiteratesn/a$87.00-
2019-2-6OppenheimerLowers Target$115.00$83.00-27.8%
2019-2-6Credit Suisse GroupReiterates$120.00$106.00-11.7%
2019-2-6BenchmarkLowers Target$153.00$120.00-21.6%
2019-2-6Bank of AmericaLowers Target$113.00$95.00-15.9%
(in average)$116.40$101.80-13.0%
The price prediction for Electronic Arts stock is $101.80, moving in a range between $120.00 and $83.00. In average, analysts' outlook on EA price target is negative, downsizing the forecast by a -13.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After 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.
EA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a1.8n/a
2017-Q2-n/a2.06n/a
2017-Q32017-10-310.540.6214.8%
2017-Q42018-01-302.192.18-0.5%
2018-Q12018-05-080.991.1314.1%
2018-Q22018-07-26-0.120.07n/a
2018-Q32018-10-300.370.8116.2%
2018-Q42019-02-051.751.876.9%
2019-Q12019-05-070.95n/an/a
2019-Q2-n/an/an/a

Annual financial results

In 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%.

EA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,800 M-$98 M2.6%-
2014$3,570 M-6.05%$8.00 M0.2%-91.84%
2015$4,515 M26.47%$875 M19.4%10,837.50%
2016$4,396 M-2.64%$1,156 M26.3%32.11%
2017$4,845 M10.21%$967 M20.0%-16.35%
2018$5,150 M6.30%$1,043 M20.3%7.86%
TTM $3,712 M-27.92%$810 M21.8%-22.34%

Quarterly financial results

Electronic 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%.
EA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
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$1,160 M21.34%$-186 M-16.0%745.45%
2018-Q1$1,582 M36.38%$607 M38.4%-426.34%
2018-Q2$1,137 M-28.13%$293 M25.8%-51.73%
2018-Q3$1,286 M13.10%$255 M19.8%-12.97%
2018-Q4$1,289 M0.23%$262 M20.3%2.75%

Electronic Arts ownership

When 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:

EAATVIDISGLUUMSFT
Market cap$28.7 B$33.4 B$241.4 B$1.3 B$972.1 B
Total shares299.6 M766.0 M1,800.0 M145.2 M7,660.0 M
Float shares297.5 M757.5 M1,800.0 M114.9 M7,560.0 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 selling0.0%0.0%0.0%0.0%0.0%

EA summary

Tuesday, May 21st, 2019
Open$93.40
Close$95.65
Day range$93.25 - $96.25
Previous close$92.69
Session gain3.19%
Average true range$3.69
50d mov avg$97.13
100d mov avg$94.70
200d mov avg$99.32
Daily patternlb01a
Weekly pattern lb01a

Electronic Arts performance

Performance 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:
Stock3m6m12m
EAElectronic Arts-0.28%15.70%-27.46%
ATVIActivision Blizza...5.93%-12.17%-38.48%
DISWalt Disney16.35%20.56%33.29%
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...18.27%-2.39%-8.07%
ZNGAZynga22.27%76.72%47.48%

Electronic Arts competitors

We chose a few stocks to conform a list of Electronic Arts competitors to check if you are interested in investing in EA:

Latest EA stock news