Telefonaktiebolaget LM Ericsson (publ) [NASDAQ: ERIC] closed the trading session at $5.71 on 12/16/22. The day’s price range saw the stock hit a low of $5.67, while the highest price level was $5.8483. The company report on December 15, 2022 that Ericsson Capital Markets Day 2022.
Committed to reaching lower end of long-term target of 15-18% EBITA margin and generating Free Cash Flow before M&A of 9%-12% of sales by 2024.
Acceleration of initiatives to reduce costs by SEK 9 b. (around USD 0.9 b) by end of 2023.
The stocks have a year to date performance of -47.47 percent and weekly performance of -11.47 percent. The stock has been moved at -23.15 percent over the last six months. The stock has performed -6.24 percent around the most recent 30 days and changed -14.26 percent over the most recent 3-months.
If compared to the average trading volume of 10.67M shares, ERIC reached to a volume of 20531247 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 $7.37 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 2.80. 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.
Morgan Stanley have made an estimate for Telefonaktiebolaget LM Ericsson (publ) shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on November 08, 2022. While these analysts kept the previous recommendation, Goldman raised their target price from $10.80 to $6.10. The new note on the price target was released on October 24, 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 0.20, with the Price to Sales ratio for ERIC stock in the period of the last 12 months amounting to 0.85. The Price to Book ratio for the last quarter was 1.42, with the Price to Cash per share for the same quarter was set at 1.13. Price to Free Cash Flow for ERIC in the course of the last twelve months was 14.79 with Quick ratio for the last quarter at 0.80.
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 -11.47. With this latest performance, ERIC shares dropped by -6.24% in over the last four-week period, additionally sinking by -23.15% over the last 6 months – not to mention a drop of -46.03% 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 35.46, with the RSI for the last a single of trading hit 27.10, and the three-weeks RSI is set at 39.83 for Telefonaktiebolaget LM Ericsson (publ) [ERIC]. The present Moving Average for the last 50 days of trading for this stock 6.03, while it was recorded at 6.31 for the last single week of trading, and 7.34 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 +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 0.80 and a Current Ratio set at 1.20.
Earnings per share (EPS) analysis for Telefonaktiebolaget LM Ericsson (publ) [ERIC] stock
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%.
Telefonaktiebolaget LM Ericsson [publ] [ERIC]: Insider Ownership positions
There are presently around $1,534 million, or 8.20% 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 82,414,721, which is approximately -7.763% of the company’s market cap and around 0.90% of the total institutional ownership; HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC, holding 41,745,450 shares of the stock with an approximate value of $238.37 million in ERIC stocks shares; and SRB CORP, currently with $103.81 million in ERIC stock with ownership of nearly 22.94% 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 121 institutional holders increased their position in Telefonaktiebolaget LM Ericsson (publ) [NASDAQ:ERIC] by around 29,515,263 shares. Additionally, 159 investors decreased positions by around 47,008,330 shares, while 73 investors held positions by with 192,090,670 shares. The mentioned changes placed institutional holdings at 268,614,263 shares, according to the latest SEC report filing. ERIC stock had 36 new institutional investments in for a total of 2,332,218 shares, while 48 institutional investors sold positions of 9,765,739 shares during the same period.