Ericsson (ERIC) Downgraded by Zacks Investment Research to “Sell”
Ericsson (NASDAQ:ERIC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Ericsson has had a choppy run so far – with two earnings misses, one beat and one quarter of in-line results – over the trailing four quarters. Soft emerging market conditions, completion of major projects in Europe and adverse currency translation have been hurting top-line performances over the past few quarters. During second-quarter 2016, weakening currencies across some of the major Latin America markets and floating of the Nigerian currency proved to be major dampeners. Also, budget cuts by telecom operators are denting the company’s performance as carriers across Europe, Russia and Brazil curtailed investments in wireless products. Moreover, escalating restructuring expenses may pose as significant headwinds ahead. However, on the positive side, a constant rise in demand for 4GLTE and dominant position in the TV & Media business are expected to drive growth.”
ERIC has been the topic of a number of other research reports. BMO Capital Markets reaffirmed a “hold” rating and set a $8.00 price objective on shares of Ericsson in a research note on Monday, July 18th. Charter Equity lowered Ericsson from a “market perform” rating to an “underperform” rating in a report on Wednesday, July 20th. Barclays PLC upgraded Ericsson from an “underweight” rating to an “equal weight” rating in a report on Wednesday, July 6th. Vetr lowered Ericsson from a “hold” rating to a “sell” rating and set a $7.64 price target on the stock. in a report on Wednesday, June 22nd. Finally, Canaccord Genuity reduced their price target on Ericsson from $8.50 to $7.00 and set a “hold” rating on the stock in a report on Wednesday, July 20th. Four analysts have rated the stock with a sell rating, fourteen have issued a hold rating, two have given a buy rating and one has assigned a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $8.49.
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Ericsson (NASDAQ:ERIC) traded up 0.15% during trading on Tuesday, hitting $6.72. 1,565,270 shares of the stock traded hands. Ericsson has a 52-week low of $6.68 and a 52-week high of $10.58. The stock has a 50 day moving average price of $7.19 and a 200-day moving average price of $8.03. The stock has a market cap of $21.92 billion, a P/E ratio of 13.77 and a beta of 1.01.
Ericsson (NASDAQ:ERIC) last issued its quarterly earnings results on Tuesday, July 19th. The company reported $0.10 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.12 by $0.02. Ericsson had a return on equity of 13.14% and a net margin of 5.70%. On average, analysts anticipate that Ericsson will post $0.51 EPS for the current fiscal year.
A number of institutional investors have recently added to or reduced their stakes in the stock. Sterling Capital Management LLC increased its position in shares of Ericsson by 25.6% in the second quarter. Sterling Capital Management LLC now owns 14,382 shares of the company’s stock worth $110,000 after buying an additional 2,931 shares in the last quarter. OLD National Bancorp IN boosted its stake in Ericsson by 38.2% in the second quarter. OLD National Bancorp IN now owns 15,638 shares of the company’s stock valued at $120,000 after buying an additional 4,325 shares during the last quarter. Societe Generale acquired a new stake in Ericsson during the second quarter valued at $133,000. SG Americas Securities LLC boosted its stake in Ericsson by 49.1% in the second quarter. SG Americas Securities LLC now owns 17,344 shares of the company’s stock valued at $133,000 after buying an additional 5,714 shares during the last quarter. Finally, Smithfield Trust Co. acquired a new stake in Ericsson during the second quarter valued at $136,000. 7.29% of the stock is owned by institutional investors.
Telefonaktiebolaget LM Ericsson is a Sweden-based telecommunications operator. The Company 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.
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