Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) reaches $27.55B market cap as shares retreated -1.99% in recent session. It closed at $8.38, after slipping as low as $8.35 through the day. The shares were pushed to an intraday high Tuesday at $8.49. Trading activity significantly weakened as the volume at ready counter decreased to 5,240,838 shares versus 5,745,285 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 5,307,893 shares. The stock is now 39.67% above against its bear-market low of $6 on April 04, 2018. It has retreated -12.77% since it’s 52-week high of $9.45 reached in October. Now the market price is up 14.95% on the year and down -5.52% YTD.
ERIC’s 50 day simple moving average (SMA 50) price is $8.64 and its 200-day simple moving average (SMA 200) price is $8.14. The company’s stock currently has a total float of 3.04B shares. Its weekly volatility is hovering around 1.45% and felt 2.2% volatility in price over a month. On the upside, the share price will test short term resistance at around $8.46. On a downside, the stock is likely to find some support, which begins at $8.32. The failure to get near-term support could push it to $8.27.
Wall Street’s most bullish Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) analysts are predicting the share price to blow past $11.07 per share during the next 12 months. The current median share price forecast by them is $9, suggesting that the stock could increase 7.4% in that time frame. The average price target of $9.02 calls for a nearly 7.64% increase in the stock price.
It had seen a positive analyst call from Raymond James, which upgraded the stock from Underperform to Mkt Perform on December 20. Analysts at Argus, shed their negative views on October 19 by lifting it fromHold to Buy. The stock won favor of Credit Suisse analysts who expressed their confidence in it using an upgrade from Underperform to Neutral on September 19. JP Morgan analysts came out with bullish views on September 05 when the call was made. They think the stock is now Overweight compared to to their prior call for Neutral.
Moreover, it trades for 19.13 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.62x price/book and 1.21x price/sales. Compared to others, Telefonaktiebolaget LM Ericsson (publ) is in a different league with regards to profitability, having net margins of -9%. To put some perspective around this, the industry’s average net margin is 5.33%. ERIC’s ROE is -19.6%, which is also considerably worse than the industry’s ROE of 8.17%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 0.35.
Shares of Telefonaktiebolaget LM Ericsson (publ) (ERIC) have dropped -2.2% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) has topped consensus earnings estimates in 3 quarters (25%), missed earnings in 9 quarters (75%), whereas at 0 occasion EPS met analyst expectations. ERIC last reported earnings on October 18, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.12 per share, -99.93% change on the same period last year. That was better than consensus for $0.04. Revenue for the recent quarter stood at $6.03 billion, up 3% on last year and above the $5.72 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $5.09 billion to $5.38 billion, which should be compared with $5.39 billion generated last year. EPS is seen in a range of $0.06 to $0.11, against the $0.08 reported a year ago.