Ericsson (ERIC) Stock Price, News & Analysis

Company Overview

Ericsson (NASDAQ:ERIC) is a global leader in telecommunications equipment and services, founded in 1876 in Stockholm, Sweden. The company develops and markets hardware, software and services for use in communications networks and sells them to mobile and fixed network operators around the world. Over its history, Ericsson has driven the evolution from 2G through 5G wireless standards and remains at the forefront of network innovation.

Ericsson’s operations are organized into Networks, Digital Services, Managed Services and Emerging Business. The Networks segment delivers radio access, transport and core network solutions. Digital Services provides software and consulting for network virtualization, automation and analytics. Managed Services supports operators in designing, deploying and running their networks. Emerging Business focuses on Internet of Things (IoT), private networks and cloud-based platforms.

The company serves customers in more than 180 countries across Europe, Asia-Pacific, the Americas, the Middle East and Africa. Ericsson partners with leading mobile network operators and enterprises in sectors such as manufacturing, transportation and utilities to deliver scalable connectivity solutions. Its global presence is bolstered by research and development centers in Sweden, the United States, India and China.

Under the leadership of President and CEO Börje Ekholm, Ericsson emphasizes sustainability, innovation and digital transformation. The company invests in energy-efficient technologies and aims to reduce its own carbon footprint while helping customers build greener networks. With a focus on open standards and strategic partnerships, Ericsson continues to shape the future of telecommunications and drive the adoption of next-generation broadband services.

Key Stats

• Today's Range: $7.16 to $7.68
• 50-Day Range: $7.84 to $8.86
• 52-Week Range: $6.41 to $9.00
• Volume: 72.33 million shs
• Average Volume: 19.96 million shs
• Market Capitalization: $24.17 billion
• P/E Ratio: 144.40
• Dividend Yield: 2.49%
• Price Target: $9.80
• Consensus Rating: Hold

Ericsson Stock Analysis - MarketRank™

Ericsson scored higher than 66% of companies evaluated by MarketBeat, and ranked 292nd out of 660 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.0 / 5
• Analyst Rating: Hold

Consensus Rating

Ericsson has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on no buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Ericsson has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 10.42%

Earnings Growth

Earnings for Ericsson are expected to grow by 10.42% in the coming year, from $0.48 to $0.53 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Ericsson is 144.40, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 26.60.

Price to Earnings Ratio vs. Sector

The P/E ratio of Ericsson is 144.40, which means that it is trading at a more expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 32.99.

Price to Earnings Growth Ratio

Ericsson has a PEG Ratio of 5.68. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Ericsson has a P/B Ratio of 2.75. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.26% of the float of Ericsson has been sold short.

Short Interest Ratio / Days to Cover

Ericsson has a short interest ratio ("days to cover") of 1.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ericsson has recently decreased by 19.39%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Ericsson pays a meaningful dividend of 2.31%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Ericsson does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Ericsson is 360.00%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on earnings estimates, Ericsson will have a dividend payout ratio of 33.96% next year. This indicates that Ericsson will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

1.26% of the float of Ericsson has been sold short.

Short Interest Ratio / Days to Cover

Ericsson has a short interest ratio ("days to cover") of 1.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ericsson has recently decreased by 19.39%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.9 / 5
• News Sentiment: 0.14

News Sentiment

Ericsson has a news sentiment score of 0.14. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.86 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 20 news articles for Ericsson this week, compared to 6 articles on an average week.

Search Interest

11 people have searched for ERIC on MarketBeat in the last 30 days. This is an increase of 22% compared to the previous 30 days.

MarketBeat Follows

5 people have added Ericsson to their MarketBeat watchlist in the last 30 days. This is an increase of 67% compared to the previous 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Ericsson insiders have not sold or bought any company stock.

Percentage Held by Institutions

Only 7.99% of the stock of Ericsson is held by institutions.

ERIC Stock Analysis - Frequently Asked Questions

How have ERIC shares performed this year?

Ericsson's stock was trading at $8.06 at the beginning of the year. Since then, ERIC shares have decreased by 10.4% and is now trading at $7.22.

How were Ericsson's earnings last quarter?

Ericsson (NASDAQ:ERIC) posted its earnings results on Tuesday, April, 15th. The communications equipment provider reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.03. The communications equipment provider earned $5.68 billion during the quarter, compared to analyst estimates of $55.83 billion. Ericsson had a trailing twelve-month return on equity of 16.45% and a net margin of 0.67%.
Read the conference call transcript.

Does Ericsson have any subsidiaries?

The following companies are subsidiaries of Ericsson: CradlePoint, Genaker, CENX, Allolio&Konrad, Ericpol, NodePrime, FYI Television, and others.

Who are Ericsson's major shareholders?

Top institutional shareholders of Ericsson include Public Employees Retirement System of Ohio (0.04%).

How do I buy shares of Ericsson?

Shares of ERIC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Ericsson own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Ericsson investors own include American Water Works (AWK), Humana (HUM), Waste Connections (WCN), Voyager Therapeutics (VYGR), The RMR Group (RMR), AU Optronics (AUOTY) and DiamondRock Hospitality (DRH).

Company Calendar

• Last Earnings: 4/15/2025
• Today: 7/15/2025
• Next Earnings (Estimated): 7/15/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Wireless Equipment
• Sub-Industry: Electronic Equipment
• Current Symbol: NASDAQ:ERIC
• CIK: 717826
• Web: www.ericsson.com
• Phone: (610) 719-0000
• Fax: 46-8719-4222
• Employees: 94,326
• Year Founded: 1876

Price Target and Rating

• Average Price Target for Ericsson: $9.80
• High Price Target: $9.80
• Low Price Target: $9.80
• Potential Upside/Downside: +34.3%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 2 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.05
• Trailing P/E Ratio: 145.90
• Forward P/E Ratio: 15.20
• P/E Growth: 5.68
• Net Income: $1.89 million
• Net Margins: 0.67%
• Pretax Margin: 1.90%
• Return on Equity: 16.45%
• Return on Assets: 5.07%

Debt

• Debt-to-Equity Ratio: 0.35
• Current Ratio: 1.09
• Quick Ratio: 0.88

Sales & Book Value

• Annual Sales: $249.58 billion
• Price / Sales: 0.10
• Cash Flow: $0.59 per share
• Price / Cash Flow: 12.45
• Book Value: $2.63 per share
• Price / Book: 2.77

Miscellaneous

• Outstanding Shares: 3,348,252,000
• Free Float: N/A
• Market Cap: $24.43 billion
• Optionable: Optionable
• Beta: 0.93