Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC)’s stock price has increased by 1.13 compared to its previous closing price of 5.30. Despite this, the company has seen a loss of -3.25% in its stock price over the last five trading days. The Wall Street Journal reported on 02/24/23 that Ericsson to Cut 8,500 More Jobs as 5G Rollout Stalls
Is It Worth Investing in Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) Right Now?
The price-to-earnings ratio for Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) is above average at 10.23x, while the 36-month beta value is 0.57.Analysts have differing opinions on the stock, with 7 analysts rating it as a “buy,” 3 as “overweight,” 15 as “hold,” and 3 as “sell.”
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The average price point forecasted by analysts for Telefonaktiebolaget LM Ericsson (publ) (ERIC) is $6.98, which is $0.98 above the current market price. The public float for ERIC is 2.98B, and currently, short sellers hold a 0.50% ratio of that floaft. The average trading volume of ERIC on March 17, 2023 was 10.25M shares.
ERIC’s Market Performance
The stock of Telefonaktiebolaget LM Ericsson (publ) (ERIC) has seen a -3.25% decrease in the past week, with a -7.59% drop in the past month, and a -18.79% fall in the past quarter. The volatility ratio for the week is 2.06%, and the volatility levels for the past 30 days are at 1.70% for ERIC. The simple moving average for the last 20 days is -3.58% for ERIC stock, with a simple moving average of -17.85% for the last 200 days.
Analysts’ Opinion of ERIC
Goldman, on the other hand, stated in their research note that they expect to see ERIC reach a price target of $4.90, previously predicting the price at $6.60. The rating they have provided for ERIC stocks is “Sell” according to the report published on January 24th, 2023.
ERIC Trading at -6.92% from the 50-Day Moving Average
After a stumble in the market that brought ERIC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -45.31% of loss for the given period.
Volatility was left at 1.70%, however, over the last 30 days, the volatility rate increased by 2.06%, as shares sank -7.75% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.76% lower at present.
During the last 5 trading sessions, ERIC fell by -3.25%, which changed the moving average for the period of 200-days by -35.03% in comparison to the 20-day moving average, which settled at $5.54. In addition, Telefonaktiebolaget LM Ericsson (publ) saw -8.22% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for ERIC
Current profitability levels for the company are sitting at:
- +11.29 for the present operating margin
- +41.79 for the gross margin
The net margin for Telefonaktiebolaget LM Ericsson (publ) stands at +6.90. The total capital return value is set at 18.94, while invested capital returns managed to touch 12.21. Equity return is now at value 14.60, with 5.50 for asset returns.
Based on Telefonaktiebolaget LM Ericsson (publ) (ERIC), the company’s capital structure generated 31.33 points at debt to equity in total, while total debt to capital is 23.85. Total debt to assets is 12.08, with long-term debt to equity ratio resting at 25.04. Finally, the long-term debt to capital ratio is 19.07.
When we switch over and look at the enterprise to sales, we see a ratio of 0.67, with the company’s debt to enterprise value settled at 0.21. The receivables turnover for the company is 3.60 and the total asset turnover is 0.83. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.19.
Conclusion
In a nutshell, Telefonaktiebolaget LM Ericsson (publ) (ERIC) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
