Ericsson (NASDAQ:ERIC) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Nine brokerages give Ericsson an average recommendation of "Reduce" (2 sell, 6 hold, 1 buy), with an average 1‑year price target of $11.00.
• Shares opened at $11.76, trade near their 50‑day/200‑day averages ($11.48/$10.47) with a 52‑week range of $7.16–$12.19; the company has a market cap of $39.64 billion and a P/E of 14.89.
• Institutional investors own about 7.99% of the stock, and several funds (e.g., Quantitative Investment Management, Neuberger Berman, Brooklyn Investment Group) have recently established or increased positions.

Shares of Ericsson (NASDAQ:ERIC - Get Free Report) have been given an average recommendation of "Reduce" by the nine research firms that are currently covering the firm, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and one has issued a buy recommendation on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $11.00.

A number of research analysts recently issued reports on the company. Citigroup restated a "neutral" rating on shares of Ericsson in a research report on Tuesday. Wall Street Zen cut Ericsson from a "buy" rating to a "hold" rating in a research note on Saturday, April 25th. Argus raised shares of Ericsson to a "hold" rating in a report on Monday, January 26th. Finally, Morgan Stanley began coverage on shares of Ericsson in a research report on Monday, February 9th. They set an "equal weight" rating and a $11.00 price target for the company.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ERIC. Quantitative Investment Management LLC bought a new stake in shares of Ericsson during the third quarter valued at approximately $1,349,000. Neuberger Berman Group LLC grew its holdings in Ericsson by 57.6% in the 3rd quarter. Neuberger Berman Group LLC now owns 32,277 shares of the communications equipment provider's stock worth $267,000 after buying an additional 11,792 shares in the last quarter. Jones Financial Companies Lllp increased its position in Ericsson by 12.4% in the 3rd quarter. Jones Financial Companies Lllp now owns 13,017 shares of the communications equipment provider's stock valued at $107,000 after acquiring an additional 1,441 shares during the period. Brooklyn Investment Group raised its stake in Ericsson by 98.4% during the 4th quarter. Brooklyn Investment Group now owns 91,471 shares of the communications equipment provider's stock valued at $886,000 after acquiring an additional 45,359 shares in the last quarter. Finally, Dorsey & Whitney Trust CO LLC raised its stake in Ericsson by 7.2% during the 4th quarter. Dorsey & Whitney Trust CO LLC now owns 42,902 shares of the communications equipment provider's stock valued at $414,000 after acquiring an additional 2,869 shares in the last quarter. Institutional investors own 7.99% of the company's stock.

Ericsson Price Performance

ERIC opened at $11.76 on Friday. The company has a quick ratio of 0.93, a current ratio of 1.12 and a debt-to-equity ratio of 0.21. The company's 50-day moving average price is $11.48 and its 200 day moving average price is $10.47. Ericsson has a fifty-two week low of $7.16 and a fifty-two week high of $12.19. The firm has a market cap of $39.64 billion, a price-to-earnings ratio of 14.89, a price-to-earnings-growth ratio of 1.89 and a beta of 0.88.

Ericsson Company Profile

Ericsson AB is a Swedish multinational telecommunications equipment and services company headquartered in Stockholm. Founded in 1876 by Lars Magnus Ericsson, the company designs, develops and sells infrastructure, software and services that enable mobile and fixed-line networks worldwide. Ericsson serves a global customer base that includes mobile network operators, enterprise customers and public-sector organizations across Europe, the Americas, Asia-Pacific, the Middle East and Africa.

The company's core activities center on building and modernizing network infrastructure, with a particular focus on radio access networks (RAN), core network software, cloud-native solutions and network management systems.

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