Ericsson (NASDAQ:ERIC) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Ericsson has received a consensus recommendation of "Reduce" from five brokerage firms, with two firms suggesting a sell and three suggesting a hold.
• The average twelve-month price target for Ericsson's stock stands at $9.80, while the stock has shown a 52-week performance ranging from $6.64 to $9.87.
• In its most recent earnings report, Ericsson reported an EPS of $0.14, exceeding expectations, although its revenue decreased by 6.2% compared to the same quarter last year.

Ericsson (NASDAQ:ERIC - Get Free Report) has received an average recommendation of "Reduce" from the five ratings firms that are currently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation and three have assigned a hold recommendation to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $9.80.

Several analysts have commented on ERIC shares. Wall Street Zen upgraded shares of Ericsson from a "buy" rating to a "strong-buy" rating in a research report on Friday, September 5th. Weiss Ratings restated a "hold (c+)" rating on shares of Ericsson in a research report on Wednesday, October 8th. Barclays restated an "underweight" rating on shares of Ericsson in a research report on Wednesday. Finally, BNP Paribas restated an "underperform" rating on shares of Ericsson in a research report on Wednesday, September 3rd.

Ericsson Stock Performance

Shares of Ericsson stock opened at $9.85 on Wednesday. The firm has a fifty day moving average of $8.01 and a two-hundred day moving average of $8.04. The stock has a market capitalization of $32.98 billion, a price-to-earnings ratio of 19.70, a PEG ratio of 12.40 and a beta of 0.87. Ericsson has a 52 week low of $6.64 and a 52 week high of $9.87. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.86 and a current ratio of 1.09.

Ericsson (NASDAQ:ERIC - Get Free Report) last issued its earnings results on Tuesday, July 15th. The communications equipment provider reported $0.14 EPS for the quarter, beating the consensus estimate of $0.12 by $0.02. The company had revenue of $5.84 billion during the quarter, compared to analysts' expectations of $60.54 billion. Ericsson had a net margin of 7.06% and a return on equity of 21.17%. The business's revenue for the quarter was down 6.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($3.34) EPS. As a group, equities research analysts predict that Ericsson will post 0.48 EPS for the current year.

Institutional Trading of Ericsson

A number of large investors have recently made changes to their positions in ERIC. Federated Hermes Inc. bought a new stake in shares of Ericsson in the 1st quarter valued at $27,000. Pinnacle Bancorp Inc. bought a new position in Ericsson during the 1st quarter worth about $31,000. Cromwell Holdings LLC increased its holdings in Ericsson by 72.8% during the 2nd quarter. Cromwell Holdings LLC now owns 10,276 shares of the communications equipment provider's stock worth $87,000 after purchasing an additional 4,330 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in Ericsson by 692.4% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 12,456 shares of the communications equipment provider's stock worth $97,000 after purchasing an additional 10,884 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC bought a new position in Ericsson during the 4th quarter worth about $105,000. Institutional investors own 7.99% of the company's stock.

About Ericsson

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other.

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