Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) saw a downside of -1.19% to close Tuesday at $4.97 after subtracting -$0.06 on the day. The 5-day average trading volume is 10,424,740 shares of the company’s common stock. It has gained $5.06 in the past week and touched a new high 2 times within the past 5 days. An average of 11,127,220 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 9,008,692.
ERIC’s 1-month performance is -7.62% or -$0.41 on its low of $4.87 reached on 07/17/23. The company’s shares have touched a 52-week low of $4.87 and high of $7.81, with the stock’s rally to the 52-week high happening on 01/12/23. YTD, ERIC has lost -14.90% or -$0.87 and has reached a new high 5 times. However, the current price is down -36.36% from the 52-week high price.
Valuation Metrics
ERIC stock has a beta of 0.58. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.62 while the price-to-book (PB) in the most recent quarter is 1.32.
Telefonaktiebolaget LM Ericsson (publ)’s quick ratio for the period ended March 30 was 0.80, with the current ratio over the same period at 1.10. As well, the company’s long term debt to equity for the quarter ending March 30 was 0.22, while the total debt to equity was 0.32.. In terms of profitability, the gross margin trailing 12 months is 40.40%. The trailing 12-month EBITDA margin is 14.44% while for the period ending March 30, Telefonaktiebolaget LM Ericsson (publ)’s operating margin was 6.30%. The firm’s gross profit as reported stood at $11.23 billion against revenue of $26.91 billion.
Earnings Surprise
For the quarterly period ending March 30 this year, Telefonaktiebolaget LM Ericsson (publ)’s cash and short-term investments amounted to $857.1 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -21.2% to $2.01 billion, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected ERIC to announce $0.05 per share in earnings in its latest quarter, but it posted $0.09, representing a 80.00% surprise. EBITDA for the quarter stood at more than $586.79 million.
Let’s look briefly at Telefonaktiebolaget LM Ericsson (publ) (ERIC) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 08 August was 40.26% to suggest the stock is trending Neutral, with historical volatility in this time period at 18.65%.
The stock’s 5-day moving average is $4.99, reflecting a -1.78% or -$0.09 change from its current price. ERIC is currently trading -9.96% above its 20-day SMA, -6.23% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -3.31% and SMA200 by-22.46%.
Stochastic %K and %D was 41.67% and 37.10% and the average true range (ATR) pointed at 0.10. The RSI (14) points at 42.09%, while the 14-day stochastic is at 28.57% with the period’s ATR at 0.11. The stock’s 9-day MACD Oscillator is pointing at -0.01 and -0.05 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), Raymond James downgraded it to a Mkt perform rating. They previously had an Outperform rating on the stock. Analysts offering their rating for ERIC stock have a consensus rating for the stock as Hold. Currently, 1 brokerage advisors rate ERIC as a “sell,”, while 15 advise that investors “Hold.” 2 analysts have rated the stock as underweight. 0 rates the stock as overweight while 8 have offered a “buy” rating.
What is ERIC’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $4.40 and a high of $9.29, with their median price target at $5.87. Looking at these predictions, the average price target given by analysts is for Telefonaktiebolaget LM Ericsson (publ) (ERIC) stock is $6.24.
