Zacks Investment Research downgraded shares of Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) from a buy rating to a hold rating in a research report released on Tuesday, September 25th.
According to Zacks, “Ericsson continues to intensify its cost-streamlining efforts with focus on structural changes to help generate lasting efficiency gains. The company is actively pursuing three main areas, namely core business expansion, targeted growth and cost & efficiency to fuel growth. At the same time, Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership. However, the company continues to struggle amid challenging market conditions and all-pervasive demand weakness. Persistent low investments in mobile broadband in certain markets and lower managed services sales have hampered the sales of Networks segment, while lower legacy product sales have hurt IT & Cloud revenues. In addition, spectrum crunch due to a saturated wireless market remain a perennial challenge.”
A number of other analysts have also recently commented on the company. Credit Suisse Group raised Telefonaktiebolaget LM Ericsson from an underperform rating to a hold rating and boosted their price target for the stock from $7.19 to $8.00 in a research report on Wednesday, September 19th. JPMorgan Chase & Co. reissued a buy rating on shares of Telefonaktiebolaget LM Ericsson in a research report on Monday, September 17th. Bank of America boosted their price target on Telefonaktiebolaget LM Ericsson from $8.50 to $8.70 and gave the stock a neutral rating in a research report on Thursday, September 13th. BidaskClub raised Telefonaktiebolaget LM Ericsson from a sell rating to a hold rating in a research report on Tuesday, August 21st. Finally, Raymond James cut Telefonaktiebolaget LM Ericsson from a market perform rating to an underperform rating in a research report on Friday, July 20th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and two have issued a buy rating to the company’s stock. Telefonaktiebolaget LM Ericsson has an average rating of Hold and an average price target of $8.08.
Telefonaktiebolaget LM Ericsson stock opened at $8.23 on Tuesday. The company has a current ratio of 1.50, a quick ratio of 1.22 and a debt-to-equity ratio of 0.33. The company has a market cap of $29.34 billion, a price-to-earnings ratio of -17.51 and a beta of 0.77. Telefonaktiebolaget LM Ericsson has a fifty-two week low of $5.84 and a fifty-two week high of $9.11.
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) last posted its quarterly earnings data on Wednesday, July 18th. The communications equipment provider reported ($0.01) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.02 by ($0.03). Telefonaktiebolaget LM Ericsson had a negative net margin of 13.14% and a negative return on equity of 5.62%. The firm had revenue of $49.80 billion for the quarter, compared to the consensus estimate of $48.09 billion. During the same period in the previous year, the firm posted $0.17 earnings per share. The business’s revenue was down 1.0% compared to the same quarter last year. As a group, analysts forecast that Telefonaktiebolaget LM Ericsson will post 0.19 earnings per share for the current year.
A number of institutional investors and hedge funds have recently made changes to their positions in ERIC. Renaissance Technologies LLC purchased a new stake in Telefonaktiebolaget LM Ericsson during the 2nd quarter valued at $33,931,000. FMR LLC raised its stake in Telefonaktiebolaget LM Ericsson by 122.5% during the 2nd quarter. FMR LLC now owns 4,650,110 shares of the communications equipment provider’s stock valued at $35,666,000 after buying an additional 2,560,110 shares during the last quarter. Millennium Management LLC purchased a new stake in Telefonaktiebolaget LM Ericsson during the 2nd quarter valued at $8,245,000. Bank of America Corp DE raised its stake in Telefonaktiebolaget LM Ericsson by 173.9% during the 2nd quarter. Bank of America Corp DE now owns 1,203,510 shares of the communications equipment provider’s stock valued at $9,231,000 after buying an additional 764,120 shares during the last quarter. Finally, Jane Street Group LLC purchased a new stake in Telefonaktiebolaget LM Ericsson during the 1st quarter valued at $3,605,000. Institutional investors and hedge funds own 8.18% of the company’s stock.
About Telefonaktiebolaget LM Ericsson
Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for networks, IT and cloud, and media markets worldwide. It operates through four segments: Networks, Digital Services, Managed Services, and Other. The Networks segment provides mobile radio access networks, transport solutions, and site solutions, as well as related services, such as network rollout, network tuning, and customer support.
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