Telefonaktiebolaget L M Ericsson ADR (NASDAQ: ERIC)’s stock price has plunge by 0.79relation to previous closing price of 5.06. Nevertheless, the company has seen a 4.29% surge in its stock price over the last five trading sessions. InvestorPlace reported 2024-04-18 that Ericsson (NASDAQ: ERIC ) layoffs are a hot topic on Thursday as reports claim that the telecommunications giant is preparing to cut jobs. According to a company spokesperson, Ericsson is going to reduce its headcount by more than 200 employees.
Is It Worth Investing in Telefonaktiebolaget L M Ericsson ADR (NASDAQ: ERIC) Right Now?
Company’s 36-month beta value is 0.77.Analysts have differing opinions on the stock, with 2 analysts rating it as a “buy,” 2 as “overweight,” 6 as “hold,” and 2 as “sell.”
The public float for ERIC is 3.07B, and currently, short sellers hold a 1.02% ratio of that floaft. The average trading volume of ERIC on April 22, 2024 was 18.34M shares.
ERIC’s Market Performance
ERIC’s stock has seen a 4.29% increase for the week, with a -8.27% drop in the past month and a -13.41% fall in the past quarter. The volatility ratio for the week is 3.77%, and the volatility levels for the past 30 days are at 2.49% for Telefonaktiebolaget L M Ericsson ADR The simple moving average for the last 20 days is -2.26% for ERIC stock, with a simple moving average of -2.85% for the last 200 days.
ERIC Trading at -5.01% 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 -19.81% of loss for the given period.
Volatility was left at 2.49%, however, over the last 30 days, the volatility rate increased by 3.77%, as shares sank -7.10% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.67% lower at present.
During the last 5 trading sessions, ERIC rose by +4.29%, which changed the moving average for the period of 200-days by -4.85% in comparison to the 20-day moving average, which settled at $5.20. In addition, Telefonaktiebolaget L M Ericsson ADR saw -19.05% 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:
- 0.07 for the present operating margin
- 0.4 for the gross margin
The net margin for Telefonaktiebolaget L M Ericsson ADR stands at -0.1. The total capital return value is set at 0.1. Equity return is now at value -20.78, with -7.62 for asset returns.
Based on Telefonaktiebolaget L M Ericsson ADR (ERIC), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at 0.15. The debt to equity ratio resting at 0.5. The interest coverage ratio of the stock is 4.39.
Currently, EBITDA for the company is 27.96 billion with net debt to EBITDA at 0.71. When we switch over and look at the enterprise to sales, we see a ratio of 0.78. The receivables turnover for the company is 3.69for trailing twelve months and the total asset turnover is 0.85. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.22.
Conclusion
In a nutshell, Telefonaktiebolaget L M Ericsson ADR (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.
