Telefonaktiebolaget LM Ericsson [publ] [ERIC] is -8.56% lower this YTD. Is it still time to buy?

Telefonaktiebolaget LM Ericsson (publ) [NASDAQ: ERIC] price surged by 0.95 percent to reach at $0.05. The company report on March 20, 2023 that Ericsson establishes Quantum Research hub in Canada.

Ericsson Canada announces its first two collaborations with the University of Ottawa and the Université de Sherbrooke.

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Research projects aim to explore quantum-based algorithms for acceleration of processing in telecom networks and distributed quantum computing.

A sum of 11192064 shares traded at recent session while its average daily volume was at 9.99M shares. Telefonaktiebolaget LM Ericsson (publ) shares reached a high of $5.3793 and dropped to a low of $5.28 until finishing in the latest session at $5.34.

The one-year ERIC stock forecast points to a potential upside of 15.77. The average equity rating for ERIC stock is currently 3.00, trading closer to a bullish pattern in the stock market.

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 0.13, with the Price to Sales ratio for ERIC stock in the period of the last 12 months amounting to 0.70. The Price to Book ratio for the last quarter was 1.39, with the Price to Cash per share for the same quarter was set at 1.33. Price to Free Cash Flow for ERIC in the course of the last twelve months was 10.54 with Quick ratio for the last quarter at 0.90.

ERIC Stock Performance Analysis:

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 dropped by -7.77% in over the last four-week period, additionally sinking by -20.89% over the last 6 months – not to mention a drop of -40.53% 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 39.74, with the RSI for the last a single of trading hit 39.07, and the three-weeks RSI is set at 40.82 for Telefonaktiebolaget LM Ericsson (publ) [ERIC]. The present Moving Average for the last 50 days of trading for this stock 5.72, while it was recorded at 5.36 for the last single week of trading, and 6.48 for the last 200 days.

Insight into Telefonaktiebolaget LM Ericsson [publ] 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 +11.29 and a Gross Margin at +41.79. Telefonaktiebolaget LM Ericsson (publ)’s Net Margin is presently recorded at +6.90.

Return on Total Capital for ERIC is now 18.94, given the latest momentum, and Return on Invested Capital for the company is 12.21. Return on Equity for this stock inclined to 15.37, with Return on Assets sitting at 5.70. 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 31.33. Additionally, ERIC Total Debt to Total Capital is recorded at 23.85, with Total Debt to Total Assets ending up at 12.08. Long-Term Debt to Equity for the company is recorded at 25.04, with the Long-Term Debt to Total Capital now at 19.07.

Reflecting on the efficiency of the workforce at the company, Telefonaktiebolaget LM Ericsson (publ) [ERIC] managed to generate an average of $177,430 per employee. Receivables Turnover for the company is 3.60 with a Total Asset Turnover recorded at a value of 0.83.Telefonaktiebolaget LM Ericsson (publ)’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 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 $1,441 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 $269.68 million in ERIC stocks shares; and SRB CORP, currently with $97.08 million in ERIC stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Telefonaktiebolaget LM Ericsson (publ) stocks held by institutional investors increased at the end of Friday and at the time of the Friday reporting period, where 135 institutional holders increased their position in Telefonaktiebolaget LM Ericsson (publ) [NASDAQ:ERIC] by around 44,719,495 shares. Additionally, 169 investors decreased positions by around 47,736,841 shares, while 56 investors held positions by with 177,404,694 shares. The mentioned changes placed institutional holdings at 269,861,030 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.

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