Ericsson (NASDAQ:ERIC) Sets New 1-Year High - Here's Why

Key Points

• Ericsson hit a new 52-week high, trading as high as $12.02 (last $12.0350) on Monday with about 10.06 million shares changing hands, and the stock was up roughly 4.5%.
• Analyst views are mixed—one Buy, eight Hold and two Sell—leaving a MarketBeat average rating of "Reduce" and a consensus target of $10.40, though recent notes include Morgan Stanley initiating coverage at "equal weight" ($11) and Wall Street Zen upgrading to "strong-buy."
• Key fundamentals: market cap ~$40.3B, PE 13.6 and PEG 2.0; Ericsson recently paid a $0.1663 dividend (ex-dividend April 2) with a payout ratio of 25%.

Shares of Ericsson (NASDAQ:ERIC - Get Free Report) hit a new 52-week high during trading on Monday . The stock traded as high as $12.02 and last traded at $12.0350, with a volume of 10058004 shares traded. The stock had previously closed at $11.44.

Analyst Ratings Changes

A number of research analysts have recently weighed in on ERIC shares. Morgan Stanley assumed coverage on shares of Ericsson in a research report on Monday, February 9th. They set an "equal weight" rating and a $11.00 target price for the company. Wall Street Zen upgraded Ericsson from a "buy" rating to a "strong-buy" rating in a research note on Saturday, March 7th. Argus raised Ericsson to a "hold" rating in a report on Monday, January 26th. Citigroup restated a "neutral" rating on shares of Ericsson in a research note on Friday, January 16th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Ericsson in a research report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $10.40.

Ericsson Stock Up 4.5%

The stock's 50 day moving average is $10.68 and its 200 day moving average is $9.65. The company has a market capitalization of $40.30 billion, a PE ratio of 13.57, a PEG ratio of 2.00 and a beta of 0.93. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.08 and a current ratio of 1.29.

Ericsson Dividend Announcement

The business also recently disclosed a dividend, which was paid on Sunday, March 15th. Investors of record on Thursday, April 2nd were paid a dividend of $0.1663 per share. The ex-dividend date was Thursday, April 2nd. Ericsson's payout ratio is presently 25.00%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Brown Brothers Harriman & Co. bought a new stake in shares of Ericsson during the third quarter valued at about $28,000. Jones Financial Companies Lllp boosted its position in shares of Ericsson by 12.4% in the third 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. Dynamic Technology Lab Private Ltd purchased a new position in Ericsson during the first quarter valued at approximately $126,000. Hennessy Advisors Inc. grew its stake in 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 acquiring an additional 1,518 shares in the last quarter. Finally, Neuberger Berman Group LLC increased its holdings in Ericsson by 57.2% during the 2nd quarter. Neuberger Berman Group LLC now owns 20,485 shares of the communications equipment provider's stock worth $174,000 after acquiring an additional 7,452 shares during the period. Institutional investors own 7.99% of the company's stock.

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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