Electronic Arts Stock Buy Hold or Sell Recommendation
| EA Stock | USD 127.12 0.15 0.12% |
Allowing for the 90-day total investment horizon and your typical level of risk aversion, our recommendation regarding Electronic Arts is 'Strong Hold'. Macroaxis provides Electronic Arts buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EA positions. The advice algorithm takes into account all of Electronic Arts' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Electronic Arts' buy or sell advice are summarized below:
Real Value 137.36 | Target Price 143.73 | Hype Value 127.13 | Market Value 127.12 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Electronic Arts given historical horizon and risk tolerance towards Electronic Arts. When Macroaxis issues a 'buy' or 'sell' recommendation for Electronic Arts, the advice is generated through an automated system that utilizes algorithms and statistical models.
Electronic |
Execute Electronic Arts Buy or Sell Advice
The Electronic recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Electronic Arts. Macroaxis does not own or have any residual interests in Electronic Arts or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Electronic Arts' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Electronic Arts Trading Alerts and Improvement Suggestions
| Electronic Arts generated a negative expected return over the last 90 days | |
| Electronic Arts is unlikely to experience financial distress in the next 2 years | |
| Electronic Arts has a strong financial position based on the latest SEC filings | |
| Over 97.0% of the company shares are held by institutions such as insurance companies | |
| On 20th of March 2024 Electronic Arts paid $ 0.19 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Video Gaming Stocks Q4 Earnings Roblox Best of the Bunch |
Electronic Arts Returns Distribution Density
The distribution of Electronic Arts' historical returns is an attempt to chart the uncertainty of Electronic Arts' future price movements. The chart of the probability distribution of Electronic Arts daily returns describes the distribution of returns around its average expected value. We use Electronic Arts price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Electronic Arts returns is essential to provide solid investment advice for Electronic Arts.
| Mean Return | -0.12 | Value At Risk | -1.82 | Potential Upside | 1.31 | Standard Deviation | 0.98 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Electronic Arts historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Electronic Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Electronic Arts is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Electronic Arts backward and forwards among themselves. Electronic Arts' institutional investor refers to the entity that pools money to purchase Electronic Arts' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ninety One Uk Limited | 2023-12-31 | 4.1 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 3.6 M | Amvescap Plc. | 2023-12-31 | 3.6 M | Fidelity International Ltd | 2023-12-31 | 3.4 M | Northern Trust Corp | 2023-12-31 | 3.1 M | Legal & General Group Plc | 2023-12-31 | 2.6 M | Dnb Nor Asset Management (asia) | 2023-12-31 | 2.4 M | Ameriprise Financial Inc | 2023-12-31 | 2.3 M | Wellington Management Company Llp | 2023-12-31 | 2.2 M | Blackrock Inc | 2023-12-31 | 25.6 M | Vanguard Group Inc | 2023-12-31 | 25.4 M |
Electronic Arts Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (164M) | 41M | 77M | 34M | 39.1M | 41.1M | |
| Change In Cash | (940M) | 1.5B | (2.5B) | (308M) | (277.2M) | (263.3M) | |
| Free Cash Flow | 1.7B | 1.8B | 1.7B | 1.3B | 1.5B | 1.6B | |
| Depreciation | 150M | 181M | 486M | 536M | 616.4M | 647.2M | |
| Other Non Cash Items | 1.9B | 143M | 329M | 221M | 254.2M | 266.9M | |
| Capital Expenditures | 140M | 124M | 188M | 207M | 238.1M | 250.0M | |
| Net Income | 3.0B | 837M | 789M | 802M | 922.3M | 968.4M | |
| End Period Cash Flow | 3.8B | 5.3B | 2.7B | 2.4B | 2.8B | 1.6B | |
| Investments | (1.2B) | 858M | (2.8B) | (217M) | (195.3M) | (205.1M) | |
| Change Receivables | 164M | (41M) | (77M) | (34M) | (39.1M) | (41.1M) | |
| Change To Netincome | (1.5B) | 292M | 528M | 327M | 294.3M | 309.0M |
Electronic Arts Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Electronic Arts or Entertainment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Electronic Arts' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Electronic stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.18 | |
β | Beta against NYSE Composite | 0.64 | |
σ | Overall volatility | 0.99 | |
Ir | Information ratio | -0.21 |
Electronic Arts Volatility Alert
Electronic Arts exhibits very low volatility with skewness of 0.21 and kurtosis of 0.54. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Electronic Arts' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Electronic Arts' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Electronic Arts Implied Volatility
Electronic Arts' implied volatility exposes the market's sentiment of Electronic Arts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Electronic Arts' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Electronic Arts stock will not fluctuate a lot when Electronic Arts' options are near their expiration.
Electronic Arts Fundamentals Vs Peers
Comparing Electronic Arts' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Electronic Arts' direct or indirect competition across all of the common fundamentals between Electronic Arts and the related equities. This way, we can detect undervalued stocks with similar characteristics as Electronic Arts or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Electronic Arts' fundamental indicators could also be used in its relative valuation, which is a method of valuing Electronic Arts by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Electronic Arts to competition |
| Fundamentals | Electronic Arts | Peer Average |
| Return On Equity | 0.14 | -0.31 |
| Return On Asset | 0.0726 | -0.14 |
| Profit Margin | 0.14 % | (1.27) % |
| Operating Margin | 0.19 % | (5.51) % |
| Current Valuation | 33.1 B | 16.62 B |
| Shares Outstanding | 267.35 M | 571.82 M |
| Shares Owned By Insiders | 0.29 % | 10.09 % |
| Shares Owned By Institutions | 96.78 % | 39.21 % |
| Number Of Shares Shorted | 7.8 M | 4.71 M |
| Price To Earning | 40.12 X | 28.72 X |
| Price To Book | 4.54 X | 9.51 X |
| Price To Sales | 4.47 X | 11.42 X |
| Revenue | 7.43 B | 9.43 B |
| Gross Profit | 5.75 B | 27.38 B |
| EBITDA | 2.09 B | 3.9 B |
| Net Income | 802 M | 570.98 M |
| Cash And Equivalents | 1.87 B | 2.7 B |
| Cash Per Share | 6.79 X | 5.01 X |
| Total Debt | 1.88 B | 5.32 B |
| Debt To Equity | 0.28 % | 48.70 % |
| Current Ratio | 1.34 X | 2.16 X |
| Book Value Per Share | 28.09 X | 1.93 K |
| Cash Flow From Operations | 1.55 B | 971.22 M |
| Short Ratio | 3.12 X | 4.00 X |
| Earnings Per Share | 3.97 X | 3.12 X |
| Price To Earnings To Growth | 1.27 X | 4.89 X |
| Target Price | 151.62 | |
| Number Of Employees | 13.4 K | 18.84 K |
| Beta | 0.77 | -0.15 |
| Market Capitalization | 33.99 B | 19.03 B |
| Total Asset | 13.46 B | 29.47 B |
| Retained Earnings | 7.36 B | 9.33 B |
| Working Capital | 684 M | 1.48 B |
Note: Disposition of 1200 shares by Andrew Wilson of Electronic Arts at 142.826 subject to Rule 16b-3 [view details]
Electronic Arts Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Electronic . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 0.0091 | |||
| Daily Balance Of Power | (0.13) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 127.42 | |||
| Day Typical Price | 127.32 | |||
| Market Facilitation Index | 1.16 | |||
| Price Action Indicator | (0.37) | |||
| Period Momentum Indicator | (0.15) |
About Electronic Arts Buy or Sell Advice
When is the right time to buy or sell Electronic Arts? Buying financial instruments such as Electronic Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 1.3B | 1.2B | 1.4B | 1.5B | Total Assets | 13.8B | 13.5B | 15.5B | 16.3B |
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In addition to having Electronic Arts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Electronic Arts Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.Note that the Electronic Arts information on this page should be used as a complementary analysis to other Electronic Arts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Complementary Tools for Electronic Stock analysis
When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.
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Is Electronic Arts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.466 | Dividend Share 0.76 | Earnings Share 3.97 | Revenue Per Share 28.177 | Quarterly Revenue Growth 0.034 |
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.