Ericsson (NASDAQ:ERIC) Reaches New 12-Month High - Here's What Happened

Key Points

• Ericsson shares reached a new **52-week high**, trading at $9.52, up from a previous close of $8.17, with a substantial trading volume of nearly 3 million shares.
• Analysts show mixed sentiments towards Ericsson, with **BNP Paribas** maintaining an "underperform" rating while **Wall Street Zen** upgraded it to a "strong-buy," indicating varying expectations about the stock's future performance.
• In the latest earnings report, Ericsson posted earnings of **$0.14 per share**, exceeding expectations, but reported a year-over-year revenue decline of **6.2%**, with quarterly revenue at $5.84 billion.

Ericsson (NASDAQ:ERIC - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $9.44 and last traded at $9.52, with a volume of 2995736 shares changing hands. The stock had previously closed at $8.17.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. BNP Paribas reiterated an "underperform" rating on shares of Ericsson in a research note on Wednesday, September 3rd. Weiss Ratings restated a "hold (c+)" rating on shares of Ericsson in a report on Wednesday, October 8th. Finally, Wall Street Zen upgraded shares of Ericsson from a "buy" rating to a "strong-buy" rating in a report on Friday, September 5th. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Ericsson presently has an average rating of "Reduce" and an average price target of $9.80.

Ericsson Trading Up 15.6%

The business has a 50-day moving average of $7.96 and a 200 day moving average of $8.03. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.86 and a current ratio of 1.09. The stock has a market cap of $31.62 billion, a PE ratio of 19.03, a PEG ratio of 13.02 and a beta of 0.87.

Ericsson (NASDAQ:ERIC - Get Free Report) last announced its earnings results on Tuesday, July 15th. The communications equipment provider reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.02. Ericsson had a return on equity of 21.17% and a net margin of 7.06%.The company had revenue of $5.84 billion for the quarter, compared to analyst estimates of $60.54 billion. During the same period in the prior year, the company posted ($3.34) EPS. Ericsson's quarterly revenue was down 6.2% on a year-over-year basis. Equities research analysts predict that Ericsson will post 0.48 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Acadian Asset Management LLC boosted its stake in Ericsson by 0.6% during the first quarter. Acadian Asset Management LLC now owns 87,313,506 shares of the communications equipment provider's stock valued at $677,498,000 after buying an additional 482,691 shares in the last quarter. ABC Arbitrage SA raised its stake in shares of Ericsson by 64.6% during the 2nd quarter. ABC Arbitrage SA now owns 5,121,349 shares of the communications equipment provider's stock worth $43,429,000 after purchasing an additional 2,009,723 shares in the last quarter. Northern Trust Corp raised its stake in shares of Ericsson by 106.6% in the 1st quarter. Northern Trust Corp now owns 3,659,696 shares of the communications equipment provider's stock valued at $28,399,000 after acquiring an additional 1,888,375 shares in the last quarter. BNP Paribas Financial Markets increased its position in Ericsson by 42.9% in the 2nd quarter. BNP Paribas Financial Markets now owns 3,350,029 shares of the communications equipment provider's stock worth $28,408,000 after buying an additional 1,005,398 shares during the period. Finally, Jane Street Group LLC increased its position in shares of Ericsson by 113.0% during the first quarter. Jane Street Group LLC now owns 2,387,985 shares of the communications equipment provider's stock valued at $18,531,000 after purchasing an additional 1,266,788 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.