Telefonaktiebolaget LM Ericsson [publ] [ERIC] is -25.85% lower this YTD. Is it still time to buy?

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Telefonaktiebolaget LM Ericsson (publ) [NASDAQ: ERIC] loss -0.25% or -0.02 points to close at $8.06 with a heavy trading volume of 9298486 shares. The company report on June 1, 2022 that Ericsson’s Commitment to Being a Responsible Corporate Citizen.


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Northampton, MA –News Direct– Ericsson.

Ericsson engages as an active local partner in the communities where it operates. Volunteering is one way Ericsson employees help the Company realize its vision to improve lives, redefine business and pioneer a sustainable future. During 2021 Ericsson strengthened its corporate citizenship efforts, including the launch of a new volunteering strategy focused on encouraging employee and community engagement. The Company also re-established global governance of this program with a new Volunteer Program Board. Ericsson also strengthened its donation strategy to focus on proactive efforts, efficiency improvements and long-term partnerships.

It opened the trading session at $8.15, the shares rose to $8.165 and dropped to $8.02, the range by which the price of stock traded the whole day. The daily chart for ERIC points out that the company has recorded -19.40% loss over the past six months. However, it is still -10.41% lower than its most recent low trading price.

If we look at the average trading volume of 10.36M shares, ERIC reached to a volume of 9298486 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $13.28 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 2.30. 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.

Jefferies have made an estimate for Telefonaktiebolaget LM Ericsson (publ) shares, keeping their opinion on the stock as Hold, with their previous recommendation back on March 17, 2022. The new note on the price target was released on March 09, 2022, representing the official price target for Telefonaktiebolaget LM Ericsson (publ) stock.

The Average True Range (ATR) for Telefonaktiebolaget LM Ericsson (publ) is set at 0.22, with the Price to Sales ratio for ERIC stock in the period of the last 12 months amounting to 1.08. The Price to Book ratio for the last quarter was 2.36, with the Price to Cash per share for the same quarter was set at 2.79. Price to Free Cash Flow for ERIC in the course of the last twelve months was 10.11 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for ERIC stock

Telefonaktiebolaget LM Ericsson (publ) [ERIC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.00. With this latest performance, ERIC shares dropped by -0.06% in over the last four-week period, additionally sinking by -19.40% over the last 6 months – not to mention a drop of -38.75% 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 49.00, with the RSI for the last a single of trading hit 53.01, and the three-weeks RSI is set at 46.25 for Telefonaktiebolaget LM Ericsson (publ) [ERIC]. The present Moving Average for the last 50 days of trading for this stock 8.50, while it was recorded at 8.07 for the last single week of trading, and 10.34 for the last 200 days.

Telefonaktiebolaget LM Ericsson [publ] [ERIC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Telefonaktiebolaget LM Ericsson (publ) [ERIC] shares currently have an operating margin of +14.04 and a Gross Margin at +43.49. Telefonaktiebolaget LM Ericsson (publ)’s Net Margin is presently recorded at +9.77.

Return on Total Capital for ERIC is now 23.91, given the latest momentum, and Return on Invested Capital for the company is 17.86. Return on Equity for this stock inclined to 23.22, with Return on Assets sitting at 7.81. 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 37.82. Additionally, ERIC Total Debt to Total Capital is recorded at 27.44, with Total Debt to Total Assets ending up at 13.38. Long-Term Debt to Equity for the company is recorded at 26.95, with the Long-Term Debt to Total Capital now at 19.56.

Reflecting on the efficiency of the workforce at the company, Telefonaktiebolaget LM Ericsson (publ) [ERIC] managed to generate an average of $223,979 per employee. Receivables Turnover for the company is 3.35 with a Total Asset Turnover recorded at a value of 0.80.Telefonaktiebolaget LM Ericsson (publ)’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.50.

Telefonaktiebolaget LM Ericsson (publ) [ERIC]: An earnings per share (EPS) analysis

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 9.23%.

An analysis of insider ownership at Telefonaktiebolaget LM Ericsson [publ] [ERIC]

There are presently around $2,216 million, or 9.00% 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 95,253,057, which is approximately -5.873% of the company’s market cap and around 0.90% of the total institutional ownership; HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC, holding 42,688,795 shares of the stock with an approximate value of $344.93 million in ERIC stocks shares; and SRB CORP, currently with $122.13 million in ERIC stock with ownership of nearly New of the company’s market capitalization.

Positions in Telefonaktiebolaget LM Ericsson (publ) stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 158 institutional holders increased their position in Telefonaktiebolaget LM Ericsson (publ) [NASDAQ:ERIC] by around 75,334,950 shares. Additionally, 193 investors decreased positions by around 58,238,839 shares, while 77 investors held positions by with 140,644,023 shares. The mentioned changes placed institutional holdings at 274,217,812 shares, according to the latest SEC report filing. ERIC stock had 65 new institutional investments in for a total of 29,409,287 shares, while 79 institutional investors sold positions of 12,771,483 shares during the same period.

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