Electronic Arts, Inc. stock trades under the ticker EA & has shown recent bullish behavior that traders & investors should take a closer look into.
EA stock closed at $128.09/share on 4/22/2022.
Electronic Arts Inc. EA Stock’s Technicals Broken Down
EA Stock Price: $128.09
10 Day Moving Average: $123.72
50 Day Moving Average: $126.42
200 Day Moving Average: $133.77
RSI: 58.04
MACD: -0.566
On Friday, EA stock completed a bullish MACD crossover, on a second straight day of gains on above average volume compared to the year prior.
With their RSI still under 60, there looks to be more momentum to come in the near-term to push their share price higher.
They will need to test & break out above the $128.55, $128.73 & $128.87/share resistance levels as they continue to climb higher.
Electronic Arts Inc. EA Stock As A Long-Term Investment
Long-term oriented investors may find EA stock’s valuation metrics to be a bit high, although given the nature of their industry that is to be expected.
EA stock has a 54.98 P/E (ttm) & a 4.53 P/B (mrq).
They recently reported 6.9% Quarterly Revenue Growth Y-o-Y.
EA stock’s balance sheet looks appealing, with $3.02B in Total Cash (mrq) & Total Debt (mrq) of $2.24B.
EA stock pays a 0.56% dividend yield, which appears to be stable in the long-run as their payout ratio is only 30.5%.
92.7% of EA stock’s outstanding share float is owned by institutional investors.
Electronic Arts Inc. EA Stock As A Short-Term Trade Using Options
EA stock has options that short-term oriented traders can use to profit from price movements in any direction, while hedging their portfolios against broader market volatility.
I am looking at the contracts with the contracts with the 4/29 expiration date.
The $126, $127 & $128 call options all look appealing, although they have open interest of under 100 contracts each.
The $129, $130 & $133 puts also look interesting, but are even less liquid, with very low levels of open interest.
Tying It All Together
Long-term oriented investors will like EA stock’s balance sheet & valuation metrics, but may be disappointed by their low dividend yield.
Short-term focused traders will like EA stock’s current momentum, but may be disappointed in the liquidity of their options.
All-in-all EA stock is worth taking a closer look at to see how it can fit into your portfolio’s strategy.
*** I DO NOT OWN SHARES OF EA STOCK AT THE TIME OF WRITING THIS ***