Ericsson (NASDAQ:ERIC) Stock Price Down 5.8% - Here's Why

Ericsson (NASDAQ:ERIC - Get Free Report)'s share price dropped 5.8% during mid-day trading on Tuesday . The company traded as low as $7.39 and last traded at $7.39. Approximately 14,473,424 shares changed hands during trading, a decline of 27% from the average daily volume of 19,739,618 shares. The stock had previously closed at $7.84.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Kepler Capital Markets upgraded Ericsson from a "strong sell" rating to a "hold" rating in a research note on Wednesday, April 16th. JPMorgan Chase & Co. increased their price target on Ericsson from $8.90 to $9.80 and gave the company a "neutral" rating in a research note on Friday, April 11th. Finally, Wall Street Zen upgraded Ericsson from a "buy" rating to a "strong-buy" rating in a research note on Thursday, April 17th.

Ericsson Trading Up 1.1%

The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.88 and a current ratio of 1.09. The business has a fifty day simple moving average of $8.38 and a 200 day simple moving average of $8.13. The stock has a market capitalization of $24.98 billion, a price-to-earnings ratio of 14.92, a price-to-earnings-growth ratio of 12.01 and a beta of 0.93.

Ericsson (NASDAQ:ERIC - Get Free Report) last announced its quarterly earnings data 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 net margin of 7.06% and a return on equity of 21.17%. The business had revenue of $5.84 billion for the quarter, compared to analysts' expectations of $60.54 billion. During the same period last year, the firm posted ($3.34) earnings per share. The firm's quarterly revenue was down 6.2% compared to the same quarter last year. As a group, research analysts expect that Ericsson will post 0.48 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ERIC. JPMorgan Chase & Co. grew its position in Ericsson by 55.1% during the 4th quarter. JPMorgan Chase & Co. now owns 1,795,967 shares of the communications equipment provider's stock worth $14,475,000 after acquiring an additional 638,393 shares during the last quarter. Allspring Global Investments Holdings LLC raised its position in Ericsson by 7.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 25,231 shares of the communications equipment provider's stock valued at $196,000 after purchasing an additional 1,713 shares during the last quarter. Northern Trust Corp raised its position in Ericsson by 41.4% in the fourth quarter. Northern Trust Corp now owns 1,771,321 shares of the communications equipment provider's stock valued at $14,277,000 after purchasing an additional 519,029 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in Ericsson by 15.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 252,164 shares of the communications equipment provider's stock valued at $2,032,000 after purchasing an additional 32,982 shares during the last quarter. Finally, PNC Financial Services Group Inc. raised its position in Ericsson by 7.7% in the fourth quarter. PNC Financial Services Group Inc. now owns 51,966 shares of the communications equipment provider's stock valued at $419,000 after purchasing an additional 3,726 shares during the last quarter. 7.99% of the stock is currently owned by institutional investors and hedge funds.

Ericsson Company Profile

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.