Telefonaktiebolaget LM Ericsson (publ) [NASDAQ: ERIC] surged by $0.08 during the normal trading session on Friday and reaching a high of $11.89 during the day while it closed the day at $11.88. The company report on November 10, 2020 that Ericsson Capital Markets Day 2020.
Turn-around completed establishing a strong platform to accelerate growth and investments in 5G enterprise applications.
Telefonaktiebolaget LM Ericsson (publ) stock has also loss -2.38% of its value over the past 7 days. However, ERIC stock has inclined by 2.15% in the 3 months of the year. Over the past six months meanwhile, it has gained 37.50% and gained 35.31% year-on date.
The market cap for ERIC stock reached $40.19 billion, with 3.33 billion shares outstanding and 3.25 billion shares in the current float. Compared to the average trading volume of 8.63M shares, ERIC reached a trading volume of 8356627 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Telefonaktiebolaget LM Ericsson [publ] [ERIC]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ERIC shares is $13.81 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ERIC stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Danske Bank have made an estimate for Telefonaktiebolaget LM Ericsson (publ) shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 22, 2020. The new note on the price target was released on March 30, 2020, representing the official price target for Telefonaktiebolaget LM Ericsson (publ) stock. Previously, the target price had yet another raise to $9, while Raymond James analysts kept a Outperform rating on ERIC stock.
The Average True Range (ATR) for Telefonaktiebolaget LM Ericsson (publ) is set at 0.32, with the Price to Sales ratio for ERIC stock in the period of the last 12 months amounting to 1.52. The Price to Book ratio for the last quarter was 4.13, with the Price to Cash per share for the same quarter was set at 1.86. Price to Free Cash Flow for ERIC in the course of the last twelve months was 42.92 with Quick ratio for the last quarter at 1.00.
ERIC stock trade performance evaluation
Telefonaktiebolaget LM Ericsson (publ) [ERIC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.38. With this latest performance, ERIC shares gained by 10.00% in over the last four-week period, additionally plugging by 37.50% over the last 6 months – not to mention a rise of 33.33% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ERIC stock in for the last two-week period is set at 55.98, with the RSI for the last a single of trading hit 56.19, and the three-weeks RSI is set at 55.93 for Telefonaktiebolaget LM Ericsson (publ) [ERIC]. The present Moving Average for the last 50 days of trading for this stock 11.18, while it was recorded at 11.83 for the last single week of trading, and 9.71 for the last 200 days.
Telefonaktiebolaget LM Ericsson [publ] [ERIC]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Telefonaktiebolaget LM Ericsson (publ) [ERIC] shares currently have an operating margin of +9.66 and a Gross Margin at +37.47. Telefonaktiebolaget LM Ericsson (publ)’s Net Margin is presently recorded at +0.98.
Return on Total Capital for ERIC is now 17.54, given the latest momentum, and Return on Invested Capital for the company is 1.88. Return on Equity for this stock inclined to 2.62, with Return on Assets sitting at 0.80. When it comes to the capital structure of this company, Telefonaktiebolaget LM Ericsson (publ) [ERIC] has a Total Debt to Total Equity ratio set at 57.63. Additionally, ERIC Total Debt to Total Capital is recorded at 36.56, with Total Debt to Total Assets ending up at 16.91. Long-Term Debt to Equity for the company is recorded at 43.43, with the Long-Term Debt to Total Capital now at 27.55.
Reflecting on the efficiency of the workforce at the company, Telefonaktiebolaget LM Ericsson (publ) [ERIC] managed to generate an average of $22,360 per employee. Receivables Turnover for the company is 2.94 with a Total Asset Turnover recorded at a value of 0.82.Telefonaktiebolaget LM Ericsson (publ)’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.30.
Earnings per share (EPS) analysis for Telefonaktiebolaget LM Ericsson (publ) [ERIC] stock
With the latest financial reports released by the company, Telefonaktiebolaget LM Ericsson (publ) posted 0.13/share EPS, while the average EPS was predicted by analysts to be reported at 0.15/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -13.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ERIC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Telefonaktiebolaget LM Ericsson (publ) go to 28.97%.
Telefonaktiebolaget LM Ericsson [publ] [ERIC]: Insider Ownership positions
There are presently around $3,469 million, or 10.00% of ERIC stock, in the hands of institutional investors. The top three institutional holders of ERIC stocks are: PRIMECAP MANAGEMENT CO/CA/ with ownership of 123,879,882, which is approximately -1.532% of the company’s market cap and around 0.90% of the total institutional ownership; HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC, holding 29,121,200 shares of the stock with an approximate value of $345.96 million in ERIC stocks shares; and FMR LLC, currently with $177.73 million in ERIC stock with ownership of nearly 65.147% of the company’s market capitalization.
Positions in Telefonaktiebolaget LM Ericsson (publ) stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 180 institutional holders increased their position in Telefonaktiebolaget LM Ericsson (publ) [NASDAQ:ERIC] by around 41,848,952 shares. Additionally, 112 investors decreased positions by around 21,909,851 shares, while 58 investors held positions by with 228,221,197 shares. The mentioned changes placed institutional holdings at 291,980,000 shares, according to the latest SEC report filing. ERIC stock had 75 new institutional investments in for a total of 16,013,097 shares, while 41 institutional investors sold positions of 4,099,638 shares during the same period.