Electronic Arts Inc. (NASDAQ: EA) shares slid back in value on Monday February 6 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Investors turned cautious in early trading today with the Dow Jones Industrial Average DJIA, was off by 17 points, or 0.1%, to 20.054.
The S&P 500 SPX, -0.14% eased 5 points, or 0.2%, to 2,293, with seven of the 11 main sectors trading lower. Nearly all main sectors were trading lower, while materials and consumer staples led the losses.
The Nasdaq Composite COMP, -0.14% slipped 10 points, or 0.2%, at 5,144.
Analysts at Zacks Investment Research upgraded shares of Electronic Arts Inc. (NASDAQ: EA) from Hold to Buy today. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has secured a consensus one-year price target of $94.38, higher than the opening price of $80.83. Electronic Arts Inc. stock has a 52-week high of $86.07. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Electronic Arts Inc. (NASDAQ: EA) opened at $80.83 yesterday and traded in a range between, $80.40 and $81.21, and last traded at $81.13, which is a dip of $0.15 compared to the previous closing price.
Electronic Arts Inc. (NASDAQ: EA) currently has a market cap of 24.58B.
Electronic Arts Inc. (NASDAQ: EA) Average Daily Trading Volume
290,693 shares crossed the trading desk yesterday, 44 percent lower than normal, out of a total float 301,227,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.
Electronic Arts Inc. (NASDAQ: EA) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Electronic Arts Inc. (NASDAQ: EA) now has a 50-day MA of $80.46 and 200-day MA of $80.50. It has traded in a 52-week range between $53.01 – 86.07 and today’s last price is 5.74%% lower than the 52 week high of $86.07.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% for 3 consecutive years.
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