Analyst Says Buy the Dip on Electronic Arts Stock

The stock just bounced off an annual low

Deputy Editor
Dec 6, 2021 at 10:53 AM
facebook X logo linkedin

Electronic Arts Inc (NASDAQ:EA) is up 0.7% to trade at $126.11 at last check, after Citigroup upgraded the security to "buy" from "neutral," citing its recent weakness as a buying opportunity. However, the brokerage also cut its price target to $150 from $160. Today's rise has the stock on track for its third-straight gain, after bouncing off a Dec. 1 annual low of $120.08. Year-to-date, EA is down 11.8%. 

A short-term bounce could've already been in the cards. This is per EA's Relative Strength Index (RSI) of 26, which sits in "oversold" territory. 

Citigroup is joining a bullish majority. Of the 19 analysts in coverage, 14 carry a "buy" or better rating on EA, while five call it a "hold." What's more, the 12-month consensus price target of $174.20 is a 37.6% premium to current levels, which would be a fresh record high for the equity. 

An unwinding of pessimism over in the options pits could send Electronic Arts stock higher still. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.39 puts have been bought for every call over the last two weeks. This ratio stands higher than 97% of readings from the past year, indicating puts being picked up at a much faster-than-usual rate. 


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI