As of Thursday close, Telefonaktiebolaget LM Ericsson (publ)’s (NASDAQ:ERIC) stock was up $0.05, moving up 1.03 percent to $4.89. The average number of shares traded per day over the past five days has been 8,216,920 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.16 fall in that time frame. In the last twenty days, the average volume was 8,261,125, while in the previous 50 days, it was 9,494,132.
Since last month, ERIC stock retreated -3.74%. Shares of the company fell to $4.83 on 08/16/23, the lowest level in the past month. A 52-week high of $7.73 was reached on 01/12/23 after having rallying from a 52-week low of $4.83. Since the beginning of this year, ERIC’s stock price has dropped by -16.27% or -$0.95, and marked a new high 5 times. However, the stock has declined by -36.74% since its 52-week high.
Valuation Metrics
Right now, Telefonaktiebolaget LM Ericsson (publ) (ERIC) has a P/E ratio of about 14.38. The stock’s beta is 0.58. Besides these, the trailing price-to-sales (P/S) ratio of 0.64, the price-to-book (PB) ratio of 1.30.
The latest dividend of $0.0760 per share was paid out, which is -14.61% less than last year’s $0.0890. On Wednesday September 7 2022, a $0.0130 dividend decrease was announced.
Financial Health
In the three months ended March 30, Telefonaktiebolaget LM Ericsson (publ)’s quick ratio stood at 0.80, while its current ratio was 1.10, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.22, and the total debt-to-equity ratio was 0.32. On the profitability front, the trailing twelve-month gross margin is 40.40% percent. In the year ended March 30, EBITDA margin amounted to 14.44%, whereas operating margins totaled 6.30%. Based on annual data, ERIC earned $11.23 billion in gross profit and brought in $26.91 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 12.20%. Return on equity (ROE) for the past 12 months was 9.10%.
In Telefonaktiebolaget LM Ericsson (publ)’s quarter-end financial report for March 30, it reported total debt of $80.09 million against cash and short-term investments of $857.1 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. ERIC’s revenue rose 14.45% during the quarter, while net income inched up to $29.19 billion. While analysts expected Telefonaktiebolaget LM Ericsson (publ) to report $0.05 quarterly earnings, the actual figure was $0.09 per share. During the quarter, the company generated $586.79 million in EBITDA. The liabilities of Telefonaktiebolaget LM Ericsson (publ) were 21.02 billion at the end of its most recent quarter ended March 30.
Technical Picture
This quick technical analysis looks at Telefonaktiebolaget LM Ericsson (publ)’s (ERIC) price momentum. With a historical volatility rate of 21.08%, the RSI 9-day stood at 40.28% on 17 August.
With respect to its five-day moving average, the current Telefonaktiebolaget LM Ericsson (publ) price is down by -3.17% percent or -$0.16. At present, ERIC shares trade -4.12% below its 20-day simple moving average and -10.44% percent below its 100-day simple moving average. However, the stock is currently trading approximately -4.68% below its SMA50 and -13.60% below its SMA200.
Stochastic coefficient K was 10.16% and Stochastic coefficient D was 16.85%, while ATR was 0.10. Given the Stochastic reading of 20.00% for the 14-day period, the RSI (14) reading has been calculated as 41.53%. As of today, the MACD Oscillator reading stands at -0.08, while the 14-day reading stands at -0.10.
Analyst Ratings
Telefonaktiebolaget LM Ericsson (publ) downgraded its rating on Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) to a Mkt perform in a note to investors on February 07, 2023. The analysts firm previously had an Outperform rating on the stock.Telefonaktiebolaget LM Ericsson (publ) (ERIC) has been rated Hold by analysts. According to 1 brokerage firm, ERIC is a sell, and 15 firms recommend it is a Hold. There are 2 analysts who say the stock is underweight. A total of 0 analysts rate Telefonaktiebolaget LM Ericsson (publ) stock as buy, with 8 recommending it as overweight.
With a median target price of $5.87, the current consensus forecast for the stock is $4.40 – $9.29. Based on these forecasts, analysts predict Telefonaktiebolaget LM Ericsson (publ) (ERIC) will achieve an average price target of $6.24.
