Should You Invest in Telefonaktiebolaget L M Ericsson ADR (ERIC) Now?

Telefonaktiebolaget L M Ericsson ADR (NASDAQ: ERIC) has a higher price-to-earnings ratio of 179.44x compared to its average ratio, The 36-month beta value for ERIC is at 0.98. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 1 rating it as “overweight,” 4 as “hold,” and 0 as “sell.”

The public float for ERIC is 3.06B, and currently, shorts hold a 1.29% of that float. The average trading volume for ERIC on May 12, 2025 was 24.54M shares.

ERIC) stock’s latest price update

Telefonaktiebolaget L M Ericsson ADR (NASDAQ: ERIC)’s stock price has plunge by 0.12relation to previous closing price of 8.28. Nevertheless, the company has seen a -0.60% plunge in its stock price over the last five trading sessions. prnewswire.com reported 2025-05-05 that STOCKHOLM, May 5, 2025 /PRNewswire/ — In accordance with the resolutions by the Annual General Meeting 2025, Ericsson (NASDAQ: ERIC) expands its treasury stock in order to provide shares for the Long-Term Variable Compensation Programs LTV 2025 and LTV 2024 for Ericsson’s executive team and other executives. The Board of Directors of Ericsson has today resolved, by virtue of authorizations given by the Annual General Meeting on March 25, 2025 (the “AGM 2025”), to direct an acquisition offer to all holders of C shares to acquire these shares.

ERIC’s Market Performance

Telefonaktiebolaget L M Ericsson ADR (ERIC) has experienced a -0.60% fall in stock performance for the past week, with a 14.66% rise in the past month, and a 9.51% rise in the past quarter. The volatility ratio for the week is 1.38%, and the volatility levels for the past 30 days are at 2.04% for ERIC. The simple moving average for the last 20 days is 1.66% for ERIC stock, with a simple moving average of 5.61% for the last 200 days.

ERIC Trading at 3.24% 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 -6.85% of loss for the given period.

Volatility was left at 2.04%, however, over the last 30 days, the volatility rate increased by 1.38%, as shares surge +16.60% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.85% upper at present.

During the last 5 trading sessions, ERIC fell by -0.60%, which changed the moving average for the period of 200-days by +24.85% in comparison to the 20-day moving average, which settled at $8.15. In addition, Telefonaktiebolaget L M Ericsson ADR saw 2.85% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for ERIC

Current profitability levels for the company are sitting at:

  • 0.09 for the present operating margin
  • 0.46 for the gross margin

The net margin for Telefonaktiebolaget L M Ericsson ADR stands at 0.01. The total capital return value is set at 0.15. Equity return is now at value 1.67, with 0.56 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 1.07. The debt to equity ratio resting at 0.49. The interest coverage ratio of the stock is 6.76.

Currently, EBITDA for the company is 16.16 billion with net debt to EBITDA at -0.05. When we switch over and look at the enterprise to sales, we see a ratio of 1.06. The receivables turnover for the company is 3.92for trailing twelve months and the total asset turnover is 0.9. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.09.

Conclusion

In conclusion, Telefonaktiebolaget L M Ericsson ADR (ERIC) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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