Telefonaktiebolaget LM Ericsson (publ) [NASDAQ: ERIC] loss -4.22% on the last trading session, reaching $5.68 price per share at the time. The company report on January 20, 2023 that Ericsson reports fourth quarter and full-year results 2022.
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Telefonaktiebolaget LM Ericsson (publ) represents 3.33 billion in outstanding shares, while the company has a total market value of $20.13 billion with the latest information. ERIC stock price has been found in the range of $5.50 to $5.74.
If compared to the average trading volume of 11.03M shares, ERIC reached a trading volume of 26342733 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 $7.69 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.
Exane BNP Paribas have made an estimate for Telefonaktiebolaget LM Ericsson (publ) shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 10, 2023. While these analysts kept the previous recommendation, Morgan Stanley raised their target price to Equal-Weight. The new note on the price target was released on November 08, 2022, representing the official price target for Telefonaktiebolaget LM Ericsson (publ) stock. Previously, the target price had yet another drop from $10.80 to $6.10, while Goldman kept a Neutral rating on ERIC stock.
The Average True Range (ATR) for Telefonaktiebolaget LM Ericsson (publ) is set at 0.18, with the Price to Sales ratio for ERIC stock in the period of the last 12 months amounting to 0.81. The Price to Book ratio for the last quarter was 1.41, with the Price to Cash per share for the same quarter was set at 1.19. Price to Free Cash Flow for ERIC in the course of the last twelve months was 8.33 with Quick ratio for the last quarter at 0.80.
Trading performance analysis for ERIC stock
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 -10.27. With this latest performance, ERIC shares dropped by -2.24% in over the last four-week period, additionally sinking by -23.86% over the last 6 months – not to mention a drop of -49.91% 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 38.46, with the RSI for the last a single of trading hit 33.23, and the three-weeks RSI is set at 41.45 for Telefonaktiebolaget LM Ericsson (publ) [ERIC]. The present Moving Average for the last 50 days of trading for this stock 6.09, while it was recorded at 5.95 for the last single week of trading, and 7.02 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 0.80 and a Current Ratio set at 1.20.
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 $1,529 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 $237.11 million in ERIC stocks shares; and SRB CORP, currently with $103.26 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 January and at the time of the January reporting period, where 125 institutional holders increased their position in Telefonaktiebolaget LM Ericsson (publ) [NASDAQ:ERIC] by around 30,527,033 shares. Additionally, 157 investors decreased positions by around 43,744,129 shares, while 66 investors held positions by with 194,841,210 shares. The mentioned changes placed institutional holdings at 269,112,372 shares, according to the latest SEC report filing. ERIC stock had 38 new institutional investments in for a total of 3,168,520 shares, while 45 institutional investors sold positions of 8,543,425 shares during the same period.