The stock of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) increased by $0.05 on Monday to finish at $5.00, up 1.01 percent. The last five days have seen an average of 5,851,620 shares of common stock traded. 5 times new highs were reached in the current year, with a fall of -$0.84. The average number of shares traded over the last 20 days was 8,239,600, while the average volume over the last 50 days totaled 9,423,070.
ERIC stock dropped -1.38% since last month. On 08/16/23, the company’s shares reached a one-month low of $4.83. The stock touched a high of $7.53 on 01/12/23, after rallying from a low of $4.83 in 52 weeks. The price of ERIC stock has declined by -14.38% or -$0.84 this year, reaching a new high 5 times. Still, the stock price is down -33.60% from the 52-week high.
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Valuation Metrics
Telefonaktiebolaget LM Ericsson (publ) (ERIC) has a trailing price-to-earnings (P/E) ratio of 15.11. Beta for the stock is 0.57. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.66, the price-to-book (PB) ratio of 1.37.
Company paid $0.0820 per share in dividends, an increase of 7.89% from $0.0760 last year. A $0.0060 dividend increase was reported on Wednesday August 16 2023.
Financial Health
For the three months ended March 31, Telefonaktiebolaget LM Ericsson (publ)’s quick ratio was 0.80, while its current ratio was 1.10, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending March 31 is 0.22, and the total debt to equity ratio is 0.32. As far as profitability goes, gross margin for the trailing twelve months is 40.40% percent. Telefonaktiebolaget LM Ericsson (publ)’s EBITDA margin for the year ended March 31 was 14.44%, whereas its operating margin stood at 6.30% for the same period. Based on annual data, it had gross profit of $11.23 billion and revenue of $26.91 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ERIC’s return on assets (ROA) during the last 12 months has been 3.50%. There was a 12.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 9.10%.
Earnings Surprise
According to Telefonaktiebolaget LM Ericsson (publ)’s quarterly financial report for the quarter that ended March 31. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $29.19 billion, while revenues rose by 14.45% to $0.0. It was predicted that Telefonaktiebolaget LM Ericsson (publ)’s quarterly earnings would be $0.09, but it ended up being $0.05. EBITDA was $586.79 million for the quarter.
Technical Picture
Here’s a quick look at Telefonaktiebolaget LM Ericsson (publ)’s (ERIC) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 53.83%, suggesting the stock is Neutral, with a 14.77% historical volatility rate.
The stochastic %K and %D were 38.89% and 35.93% respectively, while the average true range (ATR) was 0.08. Based on the 14-day stochastic reading of 56.67%, the RSI (14) reading is 49.64%. On the 9-day MACD Oscillator, the stock is at 0.02.
Analyst Ratings
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) was downgraded by Raymond James to a a Mkt perform rating in its latest research report. The stock was previously rated as a an Outperform. Analysts have assigned Telefonaktiebolaget LM Ericsson (publ) (ERIC) an Hold rating. ERIC is a stock that is recommended for selling by 1 brokerage firm, while 15 companies recommend holding. The stock is underweighted by 2 analysts. Among the analysts who rate the stock, 0 rates it overweight and 8 others recommend it as a buy.
What is ERIC’s price target for the next 12 months?
The current consensus forecast for the stock is between $4.40 and $8.65, with a median target price of $5.87. In analyzing these forecasts, the average price target given by analysts for Telefonaktiebolaget LM Ericsson (publ) (ERIC) is $6.21.
