Ericsson (NASDAQ:ERIC) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Friday.

According to Zacks, “Over the past one year, Ericsson’s shares have underperformed the industry’s average return. Ericsson also has a dreadful earnings history – with huge, consecutive earnings misses over the trailing four quarters. Ericsson has warned that an uncertain market could wipe out nearly SEK 5 billion of operating income over the next year. There is also an increased risk of market and customer project adjustments, which can have a negative impact of SEK 3-5 billion on the operating income in the coming year. Escalating restructuring expenses and spectrum crunch may pose as significant headwinds, going forward. Soft emerging market conditions, completion of major projects and adverse industry trends added to the woes. On the positive side, Ericsson plans to invest in R&D to fortify Networks business and intends to stabilize IT & Cloud roadmaps.”

A number of other research analysts also recently issued reports on ERIC. BidaskClub downgraded Ericsson from a “buy” rating to a “hold” rating in a research note on Saturday, August 12th. Canaccord Genuity decreased their price objective on Ericsson from $6.00 to $5.25 and set a “hold” rating for the company in a research report on Friday, September 22nd. Credit Suisse Group AG cut Ericsson from a “neutral” rating to an “underperform” rating and decreased their price objective for the stock from $6.00 to $4.65 in a research report on Tuesday. J P Morgan Chase & Co reaffirmed a “hold” rating on shares of Ericsson in a research report on Tuesday, July 18th. Finally, Societe Generale assumed coverage on Ericsson in a research report on Wednesday, June 14th. They set a “hold” rating for the company. Three investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and five have given a buy rating to the company. Ericsson presently has an average rating of “Hold” and a consensus price target of $5.54.

Ericsson (NASDAQ ERIC) opened at 5.68 on Friday. Ericsson has a one year low of $4.83 and a one year high of $7.47.

Ericsson (NASDAQ:ERIC) last released its quarterly earnings results on Tuesday, July 18th. The communications equipment provider reported $0.02 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.03). The firm had revenue of $49.90 billion for the quarter, compared to analysts’ expectations of $50.66 billion. Ericsson had a negative return on equity of 3.16% and a negative net margin of 6.40%. The company’s quarterly revenue was down 7.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.83 EPS. Equities analysts predict that Ericsson will post $0.11 earnings per share for the current fiscal year.

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Several institutional investors and hedge funds have recently bought and sold shares of the company. Boyd Watterson Asset Management LLC OH lifted its holdings in shares of Ericsson by 1.0% in the 2nd quarter. Boyd Watterson Asset Management LLC OH now owns 18,092 shares of the communications equipment provider’s stock valued at $130,000 after buying an additional 174 shares during the period. Greenleaf Trust lifted its holdings in shares of Ericsson by 2.6% in the 2nd quarter. Greenleaf Trust now owns 31,146 shares of the communications equipment provider’s stock valued at $223,000 after buying an additional 797 shares during the period. Stephens Inc. AR lifted its holdings in shares of Ericsson by 5.0% in the 1st quarter. Stephens Inc. AR now owns 25,964 shares of the communications equipment provider’s stock valued at $172,000 after buying an additional 1,227 shares during the period. Ronald Blue & Co. LLC lifted its holdings in shares of Ericsson by 7.0% in the 2nd quarter. Ronald Blue & Co. LLC now owns 19,716 shares of the communications equipment provider’s stock valued at $141,000 after buying an additional 1,283 shares during the period. Finally, Global X Management Co. LLC lifted its holdings in shares of Ericsson by 1.2% in the 1st quarter. Global X Management Co. LLC now owns 166,784 shares of the communications equipment provider’s stock valued at $1,107,000 after buying an additional 1,940 shares during the period. 7.95% of the stock is owned by institutional investors and hedge funds.

About Ericsson

Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. The Company’s segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks.

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