Telefonaktiebolaget L M Ericsson ADR [ERIC] Stock trading around $5.51 per share: What’s Next?

Telefonaktiebolaget L M Ericsson ADR [NASDAQ: ERIC] closed the trading session at $5.51. The company report on March 28, 2024 at 9:20 AM that Independent Monitor certifies Ericsson’s Compliance Program.

Ericsson (NASDAQ: ERIC) today announced that on March 28, 2024, the independent compliance Monitor appointed by the U.S. Department of Justice (DOJ) (in June of 2020 in connection with Ericsson’s resolution of historical violations of the Foreign Corrupt Practices Act (FCPA) violations) has certified that Ericsson’s anti-corruption compliance program has satisfied requirements and is functioning effectively. This independent certification is a condition to conclusion of the Monitorship and Plea Agreement, currently expected to occur no later than June 2, 2024.

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Ericsson’s Chair of the Board of Directors, Jan Carlson, comments: “This certification is an important and independent verification of Ericsson’s significant progress in strengthening its compliance and controls since entering into the 2019 DOJ settlement. Ericsson’s continued global technology leadership and innovation, coupled with ethical decision making and effective risk management, puts us in a very strong competitive position. This marks a positive step towards completion of the monitorship, which the Company expects at the same time as the expiration of the term of the plea agreement, upon fulfillment of the remaining obligations of that agreement.”The role of the independent Monitor over the past four years has been to comprehensively review, assess, evaluate and test all aspects of the company’s global anti-corruption compliance program and internal controls. In fulfilling its duties, the independent Monitor team has had full access to the company’s Board, executives, employees, global operations and books and records.  The Monitor’s final certification is based on its four year review and has included “an assessment of the Board of Directors’ and senior management’s commitment to, and effective implementation of, the corporate compliance program”.

The stocks have a year to date performance of -12.54 percent and weekly performance of 0.36 percent. The stock has been moved at 13.14 percent over the last six months. The stock has performed 1.66 percent around the most recent 30 days and changed -13.09 percent over the most recent 3-months.

If compared to the average trading volume of 16.34M shares, ERIC reached to a volume of 10412644 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 L M Ericsson ADR [ERIC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ERIC shares is $6.10 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 2.64. 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.

UBS have made an estimate for Telefonaktiebolaget L M Ericsson ADR shares, keeping their opinion on the stock as Sell, with their previous recommendation back on January 31, 2024. The new note on the price target was released on January 19, 2024, representing the official price target for Telefonaktiebolaget L M Ericsson ADR stock. On November 30, 2023, analysts decreased their price target for ERIC shares from 7.80 to 5.90.

The Average True Range (ATR) for Telefonaktiebolaget L M Ericsson ADR is set at 0.12, with the Price to Sales ratio for ERIC stock in the period of the last 12 months amounting to 0.68. The Price to Book ratio for the last quarter was 1.87, with the Price to Cash per share for the same quarter was set at 1.45. Price to Free Cash Flow for ERIC in the course of the last twelve months was 46.66 with Quick ratio for the last quarter at 0.92.

ERIC stock trade performance evaluation

Telefonaktiebolaget L M Ericsson ADR [ERIC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.36. With this latest performance, ERIC shares gained by 1.66% in over the last four-week period, additionally plugging by 13.14% over the last 6 months – not to mention a rise of 0.36% 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 49.88, with the RSI for the last a single of trading hit 50.85, and the three-weeks RSI is set at 49.42 for Telefonaktiebolaget L M Ericsson ADR [ERIC]. The present Moving Average for the last 50 days of trading for this stock 5.53, while it was recorded at 5.45 for the last single week of trading, and 5.26 for the last 200 days.

Telefonaktiebolaget L M Ericsson ADR [ERIC]: An insightful look at the core fundamentals

Telefonaktiebolaget L M Ericsson ADR’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.92 and a Current Ratio set at 1.20.

Earnings per share (EPS) analysis for Telefonaktiebolaget L M Ericsson ADR [ERIC] stock

With the latest financial reports released by the company, Telefonaktiebolaget L M Ericsson ADR posted 0.09/share EPS, while the average EPS was predicted by analysts to be reported at 0.05/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 80.00%. 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 L M Ericsson ADR go to 1.50%.

Telefonaktiebolaget L M Ericsson ADR [ERIC]: Institutional Ownership

The top three institutional holders of ERIC stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in ERIC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in ERIC stock with ownership which is approximately 5.8325%.