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Electronic Arts Trades below Moving Averages in August

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Shareholder returns and stock trends

Electronic Arts (EA) generated investor returns of 70.14% in the trailing 12-month period and -9.62% in the trailing one-month period. In comparison, it generated 104.95% in 2014 and 37.55% YTD (year-to-date). The firm’s share price decreased 2.52% in the trailing five-day period.

In comparison, Activision (ATVI) and Zynga (ZNGA)—peer companies in the Home Entertainment subsector—increased 10% and 0.81%, respectively, in the trailing one-month period.

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Moving averages

On September 1, 2015, Electronic Arts closed the trading day at $64.67. Based on this figure, here’s how the stock fares in terms of its moving averages:

  • 87% below its 100-day moving average of $65.88
  • 70% below its 50-day moving average of $70.40
  • 63% below its 20-day moving average of $70.04

Moving average convergence divergence and the relative strength index

The MACD (moving average convergence divergence) is the difference between the short-term and long-term moving averages of a firm. Electronic Arts’ 14-day MACD is -0.99. This negative figure suggests a downward trading trend.

The company’s 14-day RSI (relative strength index) is 34, which shows that the stock is slightly oversold. Generally, if the RSI is above 70, it indicates the stock is overbought. An RSI figure of below 30 suggests that a stock has been oversold.

Analyst recommendations

Out of 24 analysts covering the stock, 15 have a “buy” recommendation, one has a “sell” recommendation, and eight recommend a “hold.” The analyst stock price target for the firm is $78.02 with a median target estimate of $80.

You can consider investing in the iShares North American Tech-Software ETF (IGV) and the Technology Select Sector SPDR Fund (XLK) to gain exposure to Electronic Arts. IGV invests about 4.28% of its holdings in EA while XLK invests 0.46% of its holdings in the firm.

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