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How to buy Electronic Arts stock | $131.02
Own Electronic Arts stock in just a few minutes.
Electronic Arts Inc is an electronic gaming & multimedia business based in the US. Electronic Arts shares (EA) are listed on the NASDAQ and all prices are listed in US Dollars. Electronic Arts employs 9,800 staff and has a trailing 12-month revenue of around USD$5.8 billion.
How to buy shares in Electronic Arts
- Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Electronic Arts Find the stock by name or ticker symbol: EA. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Electronic Arts reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of USD$131.02, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Electronic Arts, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Electronic Arts. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- EA shares summary
- Compare share dealing platforms
- Is EA stock a buy or sell?
- Stock performance over time
- Can I short EA shares?
- Is EA suitable for ethical investing?
- Are EA shares over-valued?
- Electronic Arts's financials
- How volatile are EA shares?
- Does Electronic Arts pay a dividend?
- Have EA shares ever split?
- Other common questions
How has coronavirus impacted Electronic Arts's share price?
Since the stock market crash in March caused by coronavirus, Electronic Arts's share price has had significant positive movement.
Its last market close was USD$131.02, which is 17.56% up on its pre-crash value of USD$108.01 and 52.90% up on the lowest point reached during the March crash when the shares fell as low as USD$85.69.
If you had bought USD$1,000 worth of Electronic Arts shares at the start of February 2020, those shares would have been worth USD$908.87 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,247.31.
Electronic Arts share price
Use our graph to track the performance of EA stocks over time.Electronic Arts shares at a glance
Information last updated 2020-09-20.
| Latest market close | USD$131.02 |
|---|---|
| 52-week range | USD$85.69 - USD$147.36 |
| 50-day moving average | USD$137.1662 |
| 200-day moving average | USD$122.8389 |
| Wall St. target price | USD$152.65 |
| PE ratio | 18.4206 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | USD$6.763 |
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Is it a good time to buy Electronic Arts stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Electronic Arts price performance over time
Historical closes compared with the last close of $131.02
| 1 week (2020-09-12) | N/A |
|---|---|
| 1 month (2020-08-21) | -7.22% |
| 3 months (2020-06-23) | 0.32% |
| 6 months (2020-03-23) | 37.24% |
| 1 year (2019-09-20) | 32.75% |
|---|---|
| 2 years (2018-09-21) | 13.91% |
| 3 years (2017-09-21) | 11.02% |
| 5 years (2015-09-21) | 85.63% |
Is Electronic Arts under- or over-valued?
Valuing Electronic Arts stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Electronic Arts's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Electronic Arts's P/E ratio
Electronic Arts's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 18x. In other words, Electronic Arts shares trade at around 18x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Electronic Arts's PEG ratio
Electronic Arts's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.3308. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Electronic Arts's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Electronic Arts's EBITDA
Electronic Arts's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$1.7 billion.
The EBITDA is a measure of a Electronic Arts's overall financial performance and is widely used to measure a its profitability.
Electronic Arts financials
| Revenue TTM | USD$5.8 billion |
|---|---|
| Operating margin TTM | 26.01% |
| Gross profit TTM | USD$4.2 billion |
| Return on assets TTM | 8.94% |
| Return on equity TTM | 27.8% |
| Profit margin | 34.27% |
| Book value | $26.95 |
| Market capitalisation | USD$36.4 billion |
TTM: trailing 12 months
Shorting Electronic Arts shares
There are currently 5.5 million Electronic Arts shares held short by investors – that's known as Electronic Arts's "short interest". This figure is 17.3% down from 6.7 million last month.
There are a few different ways that this level of interest in shorting Electronic Arts shares can be evaluated.
Electronic Arts's "short interest ratio" (SIR)
Electronic Arts's "short interest ratio" (SIR) is the quantity of Electronic Arts shares currently shorted divided by the average quantity of Electronic Arts shares traded daily (recently around 1.9 million). Electronic Arts's SIR currently stands at 2.85. In other words for every 100,000 Electronic Arts shares traded daily on the market, roughly 2850 shares are currently held short.
However Electronic Arts's short interest can also be evaluated against the total number of Electronic Arts shares, or, against the total number of tradable Electronic Arts shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Electronic Arts's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Electronic Arts shares in existence, roughly 20 shares are currently held short) or 0.0185% of the tradable shares (for every 100,000 tradable Electronic Arts shares, roughly 19 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Electronic Arts.
Find out more about how you can short Electronic Arts stock.
Electronic Arts's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Electronic Arts.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Electronic Arts's total ESG risk score
Total ESG risk: 17.44
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Electronic Arts's overall score of 17.44 (as at 08/01/2020) is excellent – landing it in it in the 8th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Electronic Arts is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Electronic Arts's environmental score
Environmental score: 5.63/100
Electronic Arts's environmental score of 5.63 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Electronic Arts is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Electronic Arts's social score
Social score: 11.75/100
Electronic Arts's social score of 11.75 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Electronic Arts is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Electronic Arts's governance score
Governance score: 8.57/100
Electronic Arts's governance score puts it squarely in the 7th percentile of companies rated in the same sector. That could suggest that Electronic Arts is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Electronic Arts's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Electronic Arts scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Electronic Arts has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
Electronic Arts Inc was last rated for ESG on: 2020-08-01.
| Total ESG score | 17.44 |
|---|---|
| Total ESG percentile | 8.04 |
| Environmental score | 5.63 |
| Environmental score percentile | 7 |
| Social score | 11.75 |
| Social score percentile | 7 |
| Governance score | 8.57 |
| Governance score percentile | 7 |
| Level of controversy | 2 |
Electronic Arts share dividends
We're not expecting Electronic Arts to pay a dividend over the next 12 months.
Have Electronic Arts's shares ever split?
Electronic Arts's shares were split on a 2:1 basis on 18 November 2003. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Electronic Arts shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Electronic Arts shares which in turn could have impacted Electronic Arts's share price.
Electronic Arts share price volatility
Over the last 12 months, Electronic Arts's shares have ranged in value from as little as $85.69 up to $147.36. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Electronic Arts's is 0.8696. This would suggest that Electronic Arts's shares are less volatile than average (for this exchange).
Electronic Arts overview
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and Plants v. Zombies brands; and license games from others, including FIFA, Madden NFL, and Star Wars brands. It also provides advertising services; and licenses its games to third parties to distribute and host its games. The company markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. It has a strategic partnership with KLab Inc. for game development and operation. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California.
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