The stock of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is now priced at $11.52 and the shares are -0.13 points down or -1.12% lower compared to its previous closing price of $11.65. The stock had 8.913 million contracts set over the past session. ERIC shares’ daily volume is compared to its average trading volume at 10.932 million shares. However, it has a float of 3250 million and although its performance was -1.45% over the week, it’s one to watch. Analysts have given the ERIC stock a yearly average price target of $12.36 per share. It means the stock’s upside potential is 7.29% with the ERIC share price recently placing at $11.49 to $11.72. However, some brokerage firms have priced the stock below the average, including one that has called $9.36.
The shorts are running away from the Telefonaktiebolaget LM Ericsson (publ) stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the ERIC shares have declined. Short interest in the stock represents just 0.27% of its float, but the volume has dropped by -700378. The volume of shorted shares dropped to 8.868 million from 9.569 million shares over the last two weeks. The average intraday trading volume has been 7.56 million shares, which means that days to cover moved to roughly 1.173012.
In the last trading session, Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) dropped by -$0.17 over the week and lost -$0.22 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $12.1. The stock recorded its established 52-week high on 08/27/20.
Since 03/16/20, the stock has traded to a low of $6.15 at 87.32%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.42. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Telefonaktiebolaget LM Ericsson (publ)’s two-week RSI is 51.88. This suggests that the stock is neutral at the moment and that ERIC shares’ price movement remains stable. The stochastic readings are equally revealing at 40.83% meaning the ERIC share price is currently in neutral territory.
The technical chart shows that the ERIC stock will likely settle at between $11.66 and $11.81 per share. However, if the stock dips below $11.43, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $11.35.
Currently, the stock is trading in the red of MACD, with a reading of -0.03. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Cowen raised their recommendation for ERIC from Market Perform to Outperform in March 30 review. Raymond James analysts upgraded their recommendation of the stock from Mkt Perform to Outperform while keeping its target price at $9 in a flash note released to investors on March 27. Kepler seeing the improvements upgraded the stock from Hold to Buy on January 27.
The average rating for the ERIC equity is 1.89 and is currently gathering a bullish momentum. Of 9 analysts tracking Telefonaktiebolaget LM Ericsson (publ) polled by Reuters, 1 rated ERIC as a hold. The remaining 8 analysts were split evenly. However, the split wasn’t equal as a majority (8) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the ERIC stock price is 16.65X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 118.3 above the group’s average of 31.5. Telefonaktiebolaget LM Ericsson (publ) has its P/E ratio at 4.2, which means that the stock is currently trading at a premium relative to the 3.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) will decrease by about -88.45%, which will see them reach $6420 million. The company’s full-year revenues are, however, expected to increase by about 6.06%, up from $24100 million to $25500 million. ERIC’s expected adjusted earnings should drop almost -11.11% to end up at $0.16 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 17.39% to record $0.54/share.