Ericsson (NASDAQ:ERIC) Stock Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Ericsson shares moved above their 200-day moving average, trading as high as $11.21 versus the $10.96 average and last at $11.06.
• Analyst sentiment remains cautious: MarketBeat reports a “Reduce” consensus and a $9.60 average price target, with one Buy, five Hold, and four Sell ratings.
• Ericsson beat quarterly earnings and revenue estimates, with revenue up 5.8% year over year; recent operator collaborations, including AI network automation with Verizon, highlight potential growth areas.

Ericsson (NASDAQ:ERIC - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $10.96 and traded as high as $11.21. Ericsson shares last traded at $11.06, with a volume of 8,334,879 shares changing hands.

Ericsson News Summary

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Verizon and Ericsson are advancing AI-based automation of Verizon’s radio access network. Ericsson’s rApps are being field-tested in autonomous, closed-loop optimization, with the Advanced Antenna System Cell Shaper delivering reported gains of up to 8.9% in downlink throughput and 8% in uplink throughput. The performance results and deployment activity offer a concrete example of Ericsson’s network software capabilities, although no deal value was disclosed. Article: Verizon and Ericsson partner to transform AI-native Autonomous Networks
• Positive Sentiment: Ericsson is supporting VodafoneThree’s large mid-band portfolio, a collaboration that may reinforce its position supplying 5G network technology to major operators. The article headline does not specify financial terms or expected revenue. Article: Ericsson turbo-charges VodafoneThree's massive mid-band portfolio
• Neutral Sentiment: Ericsson introduced a mobile-network system for detecting drones, with pilots planned for 2027. The technology could open a new use for telecom infrastructure, but commercialization and revenue contribution appear some way off. Article: Ericsson Adds Drone Detection to Mobile Networks with New ISAC System
• Neutral Sentiment: Ericsson and Telia are advancing outdoor 6G trials in Sweden, while Ericsson, MediaTek and T-Mobile US reported a multi-vendor pre-6G field trial. These projects support Ericsson’s longer-term technology positioning, but 6G remains an early-stage opportunity rather than an immediate earnings driver. Article: Telia Sweden, Ericsson advance 6G collaboration Article: MediaTek and Ericsson achieve multi-vendor pre-6G field trial with T-Mobile US
• Neutral Sentiment: Ericsson, Singtel and Singapore’s National University Health System expanded their connected-healthcare partnership. The announcement signals a potential application for Ericsson’s connectivity technology, but provides no financial details. Article: NUHS, Singtel and Ericsson expand connected-healthcare partnership

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. JPMorgan Chase & Co. dropped their price target on shares of Ericsson from $11.40 to $10.20 and set a "neutral" rating for the company in a research note on Thursday, October 8th. Morgan Stanley cut Ericsson from an "equal weight" rating to an "underweight" rating and lowered their price objective for the stock from $11.00 to $9.00 in a research report on Tuesday, September 22nd. Danske downgraded Ericsson from a "buy" rating to a "hold" rating in a research report on Friday, October 16th. Weiss Ratings cut shares of Ericsson from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, August 28th. Finally, Wall Street Zen raised Ericsson from a "hold" rating to a "buy" rating in a research note on Saturday, October 17th. One analyst has rated the stock with a Buy rating, five have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $9.60.

Ericsson Stock Performance

The stock has a market capitalization of $37.28 billion, a PE ratio of 18.13, a price-to-earnings-growth ratio of 1.89 and a beta of 0.97. The stock has a fifty day moving average of $10.09 and a 200-day moving average of $10.96. The company has a quick ratio of 0.90, a current ratio of 1.16 and a debt-to-equity ratio of 0.25.

Ericsson (NASDAQ:ERIC - Get Free Report) last issued its earnings results on Thursday, October 15th. The communications equipment provider reported $0.18 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.04. The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.59 billion. Ericsson had a net margin of 8.31% and a return on equity of 20.89%. The company's revenue was up 5.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.37 earnings per share. Equities analysts anticipate that Ericsson will post 0.64 earnings per share for the current fiscal year.

Ericsson Announces Dividend

The business also recently disclosed a dividend, which was paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 29th were issued a dividend of $0.1579 per share. The ex-dividend date of this dividend was Tuesday, September 29th. Ericsson's dividend payout ratio (DPR) is presently 32.79%.

Institutional Trading of Ericsson

Several institutional investors have recently modified their holdings of ERIC. Yousif Capital Management LLC grew its position in shares of Ericsson by 18.4% during the third quarter. Yousif Capital Management LLC now owns 14,891 shares of the communications equipment provider's stock worth $136,000 after acquiring an additional 2,315 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new position in shares of Ericsson in the 2nd quarter valued at approximately $15,812,000. Bank of New York Mellon Corp grew its stake in shares of Ericsson by 8.5% in the 1st quarter. Bank of New York Mellon Corp now owns 160,581 shares of the communications equipment provider's stock valued at $1,810,000 after purchasing an additional 12,534 shares during the last quarter. Finally, Advisors Preferred LLC acquired a new position in shares of Ericsson in the first quarter valued at approximately $493,000. Hedge funds and other institutional investors own 7.99% of the company's stock.

About Ericsson

Ericsson is a Swedish technology company that provides telecommunications equipment, software, and services to communications service providers and enterprise customers worldwide. Headquartered in Stockholm, the company develops infrastructure used to build and operate mobile and fixed networks, including solutions supporting 4G, 5G, and other advanced communications technologies.

Its main offerings include radio access network equipment, core network platforms, transport systems, network management software, cloud-based communications solutions, and related professional services.

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