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Electronic Arts versus Analyst Price Target Estimates

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Stock returns

Electronic Arts (EA) has returned 44% in the trailing 12 months, 0.5% in the last month, and -1.6% in the trailing five days. The stock rose 15% in 2016 and 33% in 2017, and it has increased 20% since the start of 2018.

Of the 28 analysts tracking EA, 23 have recommended a “buy,” five have recommended a “hold,” and none have recommended a “sell.” Analysts’ 12-month average price target for EA is $138.12, with a median target estimate of $140. EA is now trading at a discount of 12% to analysts’ median estimate.

Peers Activision Blizzard (ATVI), Zynga (ZNGA), Take-Two Interactive (TTWO), and NetEase (NTES) are trading at a discount of 1.4%, 25%, 18%, and 22%, respectively, to analysts’ 12-month median price target estimates.

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Moving averages

On March 2, EA closed the trading day at $125.09. Based on that price, the stock’s moving averages are as follows:

  • 9.6% above its 100-day moving average of $114.17
  • 6.8% above its 50-day moving average of $117.17
  • 1% above its 20-day moving average of $123.93

EA is currently trading 45% above its 52-week low of $86.19 and 5% below its 52-week high of $131.01.

Relative strength and moving average convergence divergence

EA’s 14-day MACD (moving average convergence divergence) is 2.61. A stock’s MACD is the difference between its short-term and long-term moving averages. EA’s positive MACD indicates an upward trading pattern.

EA has a 14-day RSI (relative strength index) score of 60, which shows that the stock is trading close to overbought territory. An RSI above 70 indicates that a stock has been overbought, and an RSI below 30 suggests that a stock has been oversold.

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