Get in on Telefonaktiebolaget LM Ericsson (publ)’s (ERIC) buy-in window today!

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) stock fell -4.22% on Friday to $5.68 against a previous-day closing price of $5.93. With 26.34 million shares changed hands, the volume of the stock remained heavier than its average volume of 11.03 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $5.74 whereas the lowest price it dropped to was $5.51. The 52-week range on ERIC shows that it touched its highest point at $12.78 and its lowest point at $5.16 during that stretch. It currently has a 1-year price target of $7.69. With its current market cap of 20.13 billion, ERIC has annualized dividend of $0.36 while the current yield stands at 6.37%. Beta for the stock currently stands at 0.57.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ERIC was down-trending over the past week, with a drop of -10.27%, but this was down by -2.24% over a month. Three-month performance dropped to -11.39% while six-month performance fell -23.86%. The stock lost -49.91% in the past year, while it has lost -2.74% so far this year. A look at the trailing 12-month EPS for ERIC yields 0.66 with Next year EPS estimates of 0.68. For the next quarter, that number is 0.21. This implies an EPS growth rate of 29.60% for this year and 11.50% for next year. EPS is expected to grow by 9.23% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 92.90%.

Float and Shares Shorts:

At present, 3.33 billion ERIC shares are outstanding with a float of 2.98 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 5.43 million, which was 0.16% higher than short shares on Sep 14, 2022. In addition to Mr. E. Borje Ekholm MBA, MSc as the firm’s Pres, CEO & Director, Mr. Fredrik Jejdling serves as its Exec. VP, Head of Bus. Area Network & Head of Segment Networks.

Institutional Ownership:

Through their ownership of 8.92% of ERIC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.40% of ERIC, in contrast to 4.24% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in ERIC with 2.68% of the stake, PRIMECAP Management Co. holds 82,414,721 shares worth 82,414,721. A second-largest stockholder of ERIC, Hotchkis & Wiley Capital Manageme, holds 41,745,450 shares, controlling over 1.36% of the firm’s shares. SRB Corp. is the third largest shareholder in ERIC, holding 18,179,693 shares or 0.59% stake. With a 1.69% stake in ERIC, the Vanguard PRIMECAP Fund is the largest stakeholder. A total of 52,002,338 shares are owned by the mutual fund manager. The Vanguard Windsor Funds – Vanguard, which owns about 0.64% of ERIC stock, is the second-largest Mutual Fund holder. It holds 19,799,680 shares valued at 115.63 million. Vanguard PRIMECAP Core Fund holds 0.27% of the stake in ERIC, owning 8,304,045 shares worth 48.5 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ERIC since 29 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ERIC analysts setting a high price target of $10.26 and a low target of $5.29, the average target price over the next 12 months is $7.69. Based on these targets, ERIC could surge 80.63% to reach the target high and fall by -6.87% to reach the target low. Reaching the average price target will result in a growth of 35.39% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ERIC will report FY 2023 earnings on 01/26/2024. Analysts have provided yearly estimates in a range of $0.79 being high and $0.39 being low. For ERIC, this leads to a yearly average estimate of $0.62. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Telefonaktiebolaget LM Ericsson (publ) surprised analysts by -$0.04 when it reported $0.18 EPS against a consensus estimate of $0.21. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.13 and the low estimate is $0.02. The average estimate for the next quarter is thus $0.09.

Dividends & Yield:

In terms of dividends, ERIC has a current ratio of $0.23, which is $0.23 over the trailing 12-months, while a dividend of $0.16 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and ERIC currently yields $4.34. In the past year, ERIC’s dividend yield has been $4.34, but when looking at the stock over the past five years, its yield has been $1.77. Accordingly, ERIC has a current buyback yield of $0.0. This was $0.0 for the TTM.

Summary of Insider Activity:

Insiders traded ERIC stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 0 while 0 shares were sold.

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