Ericsson (NASDAQ:ERIC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report 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.”

Other analysts have also recently issued reports about the company. Vetr raised Ericsson from a “hold” rating to a “buy” rating and set a $7.69 price objective on the stock in a research report on Monday, June 13th. Barclays PLC raised Ericsson from an “underweight” rating to an “equal weight” rating in a research report on Wednesday, July 6th. Bank of America Corp. reaffirmed a “hold” rating on shares of Ericsson in a research report on Tuesday, July 26th. BMO Capital Markets reissued a “hold” rating and issued a $7.00 price target on shares of Ericsson in a research report on Monday, July 25th. Finally, Canaccord Genuity dropped their price target on Ericsson from $8.50 to $7.00 and set a “hold” rating on the stock in a research report on Wednesday, July 20th. Four investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. Ericsson currently has an average rating of “Hold” and a consensus target price of $8.49.

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Shares of Ericsson (NASDAQ:ERIC) traded up 0.224% during mid-day trading on Tuesday, hitting $6.725. The company had a trading volume of 888,277 shares. Ericsson has a 52 week low of $6.68 and a 52 week high of $10.58. The firm has a 50-day moving average price of $7.19 and a 200-day moving average price of $8.03. The firm has a market capitalization of $21.94 billion, a PE ratio of 13.781 and a beta of 1.01.

Ericsson (NASDAQ:ERIC) last posted its quarterly earnings data 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 net margin of 5.70% and a return on equity of 13.14%. Equities analysts forecast that Ericsson will post $0.51 earnings per share for the current year.

Several large investors have recently modified their holdings of ERIC. Hotchkis & Wiley Capital Management LLC increased its stake in shares of Ericsson by 44.2% in the second quarter. Hotchkis & Wiley Capital Management LLC now owns 40,979,684 shares of the company’s stock worth $314,724,000 after buying an additional 12,562,156 shares during the last quarter. Primecap Management Co. CA increased its stake in shares of Ericsson by 4.6% in the first quarter. Primecap Management Co. CA now owns 78,258,204 shares of the company’s stock worth $784,930,000 after buying an additional 3,465,300 shares during the last quarter. Brandes Investment Partners LP increased its stake in shares of Ericsson by 32.6% in the second quarter. Brandes Investment Partners LP now owns 10,329,065 shares of the company’s stock worth $79,327,000 after buying an additional 2,541,781 shares during the last quarter. Symons Capital Management Inc. acquired a new stake in shares of Ericsson during the second quarter worth about $15,018,000. Finally, Cambiar Investors LLC increased its stake in shares of Ericsson by 10.7% in the second quarter. Cambiar Investors LLC now owns 18,024,576 shares of the company’s stock worth $138,429,000 after buying an additional 1,746,391 shares during the last quarter. 7.29% of the stock is owned by hedge funds and other institutional investors.

About Ericsson

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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