Ericsson (NASDAQ:ERIC) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts hold a neutral view of Ericsson: Among nine analysts, five recommend holding the stock, while two rate it a sell and two a buy. The average 12-month price target is $11.00.
• Ericsson shares opened at $9.98, down 1.7%: The stock remains below its 50-day and 200-day moving averages, with a 12-month trading range of $7.47 to $13.77.
• The company reported quarterly earnings of $0.13 per share on $5.43 billion in revenue, alongside a 20.63% return on equity and a 10.72% net margin. Institutional investors own approximately 7.99% of Ericsson’s shares.

Shares of Ericsson (NASDAQ:ERIC - Get Free Report) have been assigned a consensus recommendation of "Hold" from the nine analysts that are presently covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $11.00.

Several brokerages have weighed in on ERIC. Danske raised Ericsson from a "hold" rating to a "buy" rating in a research note on Wednesday, July 15th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Ericsson in a research note on Tuesday, June 2nd. Citigroup reiterated a "neutral" rating on shares of Ericsson in a report on Wednesday, July 15th. Finally, Wall Street Zen lowered Ericsson from a "buy" rating to a "hold" rating in a report on Saturday, April 25th.

Ericsson Stock Down 1.7%

ERIC stock opened at $9.98 on Tuesday. The business's 50-day moving average price is $10.93 and its 200-day moving average price is $11.37. The stock has a market cap of $33.64 billion, a P/E ratio of 12.80, a PEG ratio of 1.87 and a beta of 0.95. The company has a quick ratio of 0.89, a current ratio of 1.12 and a debt-to-equity ratio of 0.21. Ericsson has a twelve month low of $7.47 and a twelve month high of $13.77.

Ericsson (NASDAQ:ERIC - Get Free Report) last posted its quarterly earnings results on Tuesday, June 30th. The communications equipment provider reported $0.13 earnings per share for the quarter. The business had revenue of $5.43 billion during the quarter. Ericsson had a return on equity of 20.63% and a net margin of 10.72%. On average, equities research analysts forecast that Ericsson will post 0.61 EPS for the current year.

Institutional Investors Weigh In On Ericsson

Several hedge funds have recently made changes to their positions in the company. Brown Brothers Harriman & Co. bought a new stake in Ericsson during the third quarter valued at about $28,000. Dynamic Technology Lab Private Ltd bought a new position in Ericsson in the first quarter worth about $126,000. Hennessy Advisors Inc. lifted its position in shares of Ericsson by 10.3% during the fourth quarter. Hennessy Advisors Inc. now owns 16,324 shares of the communications equipment provider's stock valued at $158,000 after buying an additional 1,518 shares during the last quarter. LSV Asset Management lifted its position in shares of Ericsson by 14.3% during the fourth quarter. LSV Asset Management now owns 39,200 shares of the communications equipment provider's stock valued at $378,000 after buying an additional 4,900 shares during the last quarter. Finally, Brooklyn Investment Group boosted its holdings in shares of Ericsson by 302.7% in the 3rd quarter. Brooklyn Investment Group now owns 46,112 shares of the communications equipment provider's stock valued at $381,000 after buying an additional 34,660 shares in the last quarter. 7.99% of the stock is currently owned by hedge funds and other institutional investors.

About Ericsson

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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