Telefonaktiebolaget LM Ericsson (publ) [NASDAQ: ERIC] stock went on an upward path that rose over 3.45% on Friday, amounting to a one-week price increase of more than 3.83%. The company report on March 2, 2023 that U.S. Department of Justice Resolves 2019 Deferred Prosecution Agreement Breaches with Ericsson.
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Ericsson (NASDAQ: ERIC) today announced that it has reached a resolution with the U.S. Department of Justice (DOJ) regarding non-criminal breaches of its 2019 Deferred Prosecution Agreement (DPA). Under the agreement, and as provided for by the DPA, LM Ericsson will enter a guilty plea regarding previously deferred charges relating to conduct prior to 2017. In addition, Ericsson will pay a fine of $206,728,848. The entry of the plea agreement will bring the 2019 DPA to an end.
In 2019, Ericsson entered into the DPA to resolve previously disclosed Foreign Corrupt Practices Act (FCPA) violations relating to conduct in several countries between 2010 and 2016. Since the start of the DPA, the DOJ has not alleged or charged Ericsson with any new criminal misconduct, and no new illegal conduct has been alleged or charged today. As previously announced in October 2021 and March 2022, however, the DOJ notified Ericsson that it had failed to provide documents and information to the DOJ in a timely manner and had not adequately reported to the DOJ information relating to a 2019 Iraq-related internal investigation.
Over the last 12 months, ERIC stock dropped by -29.80%. The one-year Telefonaktiebolaget LM Ericsson (publ) stock forecast points to a potential upside of 10.09. The average equity rating for ERIC stock is currently 3.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $18.59 billion, with 3.33 billion shares outstanding and 2.98 billion shares in the current float. Compared to the average trading volume of 10.64M shares, ERIC stock reached a trading volume of 13280986 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 $6.34 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 3.00. 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.
Raymond James have made an estimate for Telefonaktiebolaget LM Ericsson (publ) shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on February 07, 2023. While these analysts kept the previous recommendation, Goldman dropped their target price from $6.60 to $4.90. The new note on the price target was released on January 24, 2023, representing the official price target for Telefonaktiebolaget LM Ericsson (publ) stock.
The Average True Range (ATR) for Telefonaktiebolaget LM Ericsson (publ) is set at 0.12, with the Price to Sales ratio for ERIC stock in the period of the last 12 months amounting to 0.72. The Price to Book ratio for the last quarter was 1.44, with the Price to Cash per share for the same quarter was set at 1.27. Price to Free Cash Flow for ERIC in the course of the last twelve months was 7.85 with Quick ratio for the last quarter at 0.80.
ERIC Stock Performance Analysis:
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 3.83. With this latest performance, ERIC shares dropped by -3.06% in over the last four-week period, additionally sinking by -23.28% over the last 6 months – not to mention a drop of -29.80% 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 50.15, with the RSI for the last a single of trading hit 55.19, and the three-weeks RSI is set at 48.18 for Telefonaktiebolaget LM Ericsson (publ) [ERIC]. The present Moving Average for the last 50 days of trading for this stock 5.82, while it was recorded at 5.54 for the last single week of trading, and 6.62 for the last 200 days.
Insight into Telefonaktiebolaget LM Ericsson [publ] Fundamentals:
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.
ERIC Stock EPS
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 -9.90%.
Telefonaktiebolaget LM Ericsson [publ] [ERIC] Insider Position Details
There are presently around $1,538 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 67,724,047, which is approximately -17.825% of the company’s market cap and around 0.90% of the total institutional ownership; HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC, holding 50,501,354 shares of the stock with an approximate value of $287.86 million in ERIC stocks shares; and SRB CORP, currently with $103.62 million in ERIC stock with ownership of nearly 0% of the company’s market capitalization.
136 institutional holders increased their position in Telefonaktiebolaget LM Ericsson (publ) [NASDAQ:ERIC] by around 44,720,393 shares. Additionally, 168 investors decreased positions by around 47,729,475 shares, while 55 investors held positions by with 177,432,832 shares. The mentioned changes placed institutional holdings at 269,882,700 shares, according to the latest SEC report filing. ERIC stock had 57 new institutional investments in for a total of 9,370,726 shares, while 55 institutional investors sold positions of 7,798,363 shares during the same period.