Ericsson (NASDAQ:ERIC) Sees Large Volume Increase - Should You Buy?

Key Points

• Ericsson shares rose 2.9% to $9.935 as trading volume surged 98% to approximately 21.6 million shares.
• Analyst sentiment remains mixed: two analysts rate the stock Buy, five Hold and two Sell, producing an overall Hold rating with an average price target of $11.00.
• The company reported quarterly EPS of $0.13 on $5.43 billion in revenue, with a 10.72% net margin and 20.67% return on equity; institutional investors own about 7.99% of the stock.

Shares of Ericsson (NASDAQ:ERIC - Get Free Report) saw unusually-high trading volume on Tuesday . Approximately 21,634,859 shares traded hands during mid-day trading, an increase of 98% from the previous session's volume of 10,927,326 shares.The stock last traded at $9.9350 and had previously closed at $9.67.

Analyst Ratings Changes

ERIC has been the topic of a number of research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Ericsson in a report on Tuesday, June 2nd. Wall Street Zen cut shares of Ericsson from a "buy" rating to a "hold" rating in a research report on Saturday, April 25th. Citigroup restated a "neutral" rating on shares of Ericsson in a research note on Wednesday, July 15th. Finally, Danske raised shares of Ericsson from a "hold" rating to a "buy" rating in a research report on Wednesday, July 15th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $11.00.

Ericsson Stock Up 2.9%

The firm has a market cap of $33.56 billion, a price-to-earnings ratio of 12.75, a P/E/G ratio of 1.72 and a beta of 0.93. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.12 and a quick ratio of 0.93. The stock has a 50-day moving average of $11.57 and a 200-day moving average of $11.34.

Ericsson (NASDAQ:ERIC - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The communications equipment provider reported $0.13 earnings per share for the quarter. The firm had revenue of $5.43 billion during the quarter. Ericsson had a return on equity of 20.67% and a net margin of 10.72%. Sell-side analysts predict that Ericsson will post 0.61 EPS for the current fiscal year.

Institutional Trading of Ericsson

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

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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