Zacks Investment Research cut shares of Ericsson (NASDAQ:ERIC) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.

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 subject of several other research reports. Charter Equity lowered shares of Ericsson from a market perform rating to an underperform rating in a research note on Wednesday, July 20th. Morgan Stanley restated a neutral rating on shares of Ericsson in a research note on Friday, August 12th. Barclays PLC upgraded shares of Ericsson from an underweight rating to an equal weight rating in a research note on Wednesday, July 6th. Bank of America Corp. restated a hold rating on shares of Ericsson in a research note on Tuesday, July 26th. Finally, BMO Capital Markets restated a hold rating and set a $8.00 price target on shares of Ericsson in a research note on Monday, July 18th. Four research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $8.49.

Shares of Ericsson (NASDAQ:ERIC) opened at 7.00 on Tuesday. The firm’s 50-day moving average price is $7.15 and its 200 day moving average price is $8.00. The company has a market capitalization of $22.83 billion, a PE ratio of 14.34 and a beta of 1.01. Ericsson has a 1-year low of $6.68 and a 1-year high of $10.58.

Ericsson (NASDAQ:ERIC) last posted its quarterly earnings data on Tuesday, July 19th. The company reported $0.10 EPS 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 predict that Ericsson will post $0.51 EPS for the current fiscal year.

Several hedge funds have recently bought and sold shares of ERIC. Sterling Capital Management LLC increased its stake in 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 increased 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 worth $120,000 after buying an additional 4,325 shares in the last quarter. Societe Generale bought a new stake in Ericsson during the second quarter worth about $133,000. SG Americas Securities LLC increased 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 worth $133,000 after buying an additional 5,714 shares in the last quarter. Finally, Smithfield Trust Co. bought a new stake in Ericsson during the second quarter worth about $136,000. 7.29% of the stock is owned by institutional investors.

Ericsson Company Profile

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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