Stock Mover of the Day: What’s Propelling Telefonaktiebolaget LM Ericsson to Reach 1 Year Low?

Stock Mover of the Day: What's Propelling Telefonaktiebolaget LM Ericsson to Reach 1 Year Low?

The stock of Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) hit a new 52-week low and has $5.29 target or 7.00% below today’s $5.69 share price. The 7 months bearish chart indicates high risk for the $18.85 billion company. The 1-year low was reported on Oct, 12 by Barchart.com. If the $5.29 price target is reached, the company will be worth $1.32B less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 12.83M shares traded hands or 221.55% up from the average. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) has declined 24.22% since March 9, 2016 and is downtrending. It has underperformed by 31.63% the S&P500.

Analysts await Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) to report earnings on October, 28. They expect $0.13 earnings per share, down 18.75% or $0.03 from last year’s $0.16 per share. ERIC’s profit will be $430.37M for 10.96 P/E if the $0.13 EPS becomes a reality. After $0.10 actual earnings per share reported by Telefonaktiebolaget LM Ericsson for the previous quarter, Wall Street now forecasts 30.00% EPS growth.

Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) Ratings Coverage

Out of 15 analysts covering Ericsson (NASDAQ:ERIC), 4 rate it a “Buy”, 2 “Sell”, while 9 “Hold”. This means 27% are positive. Ericsson has been the topic of 20 analyst reports since August 5, 2015 according to StockzIntelligence Inc. Bank of America downgraded Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) rating on Thursday, April 21. Bank of America has “Neutral” rating and $80 price target. As per Tuesday, December 1, the company rating was downgraded by Credit Suisse. As per Monday, September 26, the company rating was upgraded by Credit Suisse. The firm earned “Sell” rating on Tuesday, April 12 by CLSA. Swedbank downgraded the stock to “Neutral” rating in Tuesday, May 3 report. The rating was upgraded by Zacks to “Hold” on Wednesday, August 5. The stock has “Equal Weight” rating given by Barclays Capital on Wednesday, July 6. Liberum Capital upgraded Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) on Friday, September 25 to “Buy” rating. The rating was downgraded by Goldman Sachs on Thursday, January 21 to “Sell”. As per Tuesday, June 21, the company rating was upgraded by Goldman Sachs.

According to Zacks Investment Research, “Ericsson is a world-leading supplier in the fast-growing and dynamic telecommunications and data communications industry, offering advanced communications solutions for mobile and fixed networks, as well as consumer products. The company is a total solutions supplier for all customer segments: network operators and service providers, enterprises and consumers. The company has the world’s largest customer base in the telecommunications field.”

Another recent and important Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) news was published by Twst.com which published an article titled: “Telefonaktiebolaget LM Ericsson: Ericsson announces preliminary Q3, 2016 earnings” on October 12, 2016.

ERIC Company Profile

Telefonaktiebolaget LM Ericsson (Ericsson) is a global telecommunications operator. The Firm offers hardware, software and services that drive development in mobility, broadband and the cloud, creating ecosystems across various industries. Ericsson’s core businesses are Radio, Core and Transmission, and Telecom Services. Ericsson operates through three business divisions: Networks, Global Services and Support Solutions. The Firm has clients in over 180 countries. The Company’s targeted areas include business support systems (OSS) and business support systems (BSS); industry and society; television and media, and Internet protocol (IP) and cloud. The Firm operates in various geographical areas, including North America, Latin America, Northern Europe and Central Asia, Western and Central Europe, Mediterranean, Middle East, Sub-Saharan Africa, India, North East Asia, South East Asia and Oceania, and others.

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