Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) finished Thursday with a subtraction of -$0.07 to close at $4.89, a downside of -1.41 percent. An average of 6,530,620 shares of common stock have been traded in the last five days. The last 20 days have seen an average of 8,327,475 shares traded, while the 50-day average volume stands at 9,498,248.
ERIC stock has decreased by -5.23% in the last month. The company shares reached their 1-month lowest point of $4.83 on 08/16/23. With the stock rallying to its 52-week high on 01/12/23, shares of the company touched a low of $4.83 and a high of $7.53 in 52 weeks. It has reached a new high 5 times so far this year and lost -16.27% or -$0.95 in price. In spite of this, the price is down -35.06% from the 52-week high.
Valuation Metrics
Telefonaktiebolaget LM Ericsson (publ) (ERIC) has a trailing price-to-earnings (P/E) ratio of 14.68. The stock’s beta is 0.58. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.64, the price-to-book (PB) ratio at 1.33.
The company has a payout ratio of 776.10%. The company’s most recent quarterly dividend payment was $0.0820 a share, representing a up of 7.89% from $0.0760 last year. Its latest increase dividend $0.0060 reported on Wednesday August 16 2023.
Financial Health
The quick ratio of Telefonaktiebolaget LM Ericsson (publ) for the three months ended March 30 was 0.80, and the current ratio was 1.10, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.22 and a total debt to equity ratio of 0.32 for the quarter ending March 30. Telefonaktiebolaget LM Ericsson (publ)’s EBITDA margin for the year ending March 30 is 14.44%, while its operating margin for the same period stands at 6.30%. Its gross profit as reported stood at $11.23 billion compared to revenue of $26.91 billion.
Earnings Surprise
For the three-month period that ended March 30, Telefonaktiebolaget LM Ericsson (publ) had $80.09 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $2.01 billion in the quarter, while revenues were shrunk -21.2%. The analyst consensus anticipated Telefonaktiebolaget LM Ericsson (publ)’s latest quarter earnings to come in at $0.05 per share, but it turned out to be $0.09, a 80.00% surprise. For the quarter, EBITDA amounted to $586.79 million. At the end of the quarter ending March 30, Telefonaktiebolaget LM Ericsson (publ)’s stock balance sheet showed total liabilities of 21.02 billion.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Telefonaktiebolaget LM Ericsson (publ) (ERIC) price momentum. RSI 9-day as of the close on 24 August was 40.69%, suggesting the stock is Neutral, with historical volatility in this time frame at 18.07%.
As of today, ERIC’s price is $4.93 unch or $unch from its 5-day moving average. ERIC is currently trading -3.55% lower than its 20-day SMA and -16.41% lower than its 100-day SMA. However, the stock’s current price level is -7.91% below the SMA50 and -11.41% below the SMA200.
The stochastic %K and %D were 34.44% and 36.30%, respectively, and the average true range (ATR) was 0.09. With the 14-day stochastic at 20.00% and the average true range at 0.10, the RSI (14) stands at 42.04%. The stock has reached 0.01 on the 9-day MACD Oscillator while the 14-day reading was at -0.02.
Analyst Ratings
Raymond James downgraded Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) to a a Mkt perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Telefonaktiebolaget LM Ericsson (publ) (ERIC) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell ERIC, while 15 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 8 others rate it as a “buy”.
What is ERIC’s price target for the next 12 months?
Analysts predict a range of price targets between $4.40 and $9.29, with a median target of $5.87. Taking a look at these predictions, the average price target given by analysts for Telefonaktiebolaget LM Ericsson (publ) (ERIC) stock is $6.24.
