Ericsson (ERIC) Stock Price, News & Analysis

Company Overview

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. The Networks segment offers radio access network (RAN) solutions for various network spectrum bands, including purpose-built and open RAN-prepared hardware and software. This segment also provides cloud RAN; transport solutions; passive and active antennas; and a range of service portfolios covering network deployment and support. The Cloud Software and Services segment offers core networks, business and operational support systems, network design and optimization, and managed network services. The Enterprise segment offers a global communications platform, including cloud-based unified communications as a service, contact center as a service, and communications platform as a service; enterprise wireless solutions comprising private wireless networks and wireless wan pre-packaged solutions; and technologies and new business solutions, such as mobile financial services, security solutions, and advertising services. The Other segment includes Redbee media that prepares and distributes live and video services for broadcasters, sports leagues, and communications service providers. It offers its services through wholesalers and distributors. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Key Stats

• Today's Range: $8.31 to $8.40
• 50-Day Range: $7.11 to $8.86
• 52-Week Range: $5.84 to $9.00
• Volume: 15.41 million shs
• Average Volume: 19.44 million shs
• Market Capitalization: $27.89 billion
• P/E Ratio: 166.60
• Dividend Yield: 2.28%
• Price Target: $9.80
• Consensus Rating: Hold

Ericsson Stock Analysis - MarketRank™

Ericsson scored higher than 36% of companies evaluated by MarketBeat, and ranked 512th out of 665 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: 2.0 / 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 2 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 166.60, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 23.11.

Price to Earnings Ratio vs. Sector

The P/E ratio of Ericsson is 166.60, 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 44.22.

Price to Earnings Growth Ratio

Ericsson has a PEG Ratio of 5.85. 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 3.17. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.50% 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 1.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ericsson has recently increased by 6.55%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Ericsson pays a meaningful dividend of 2.28%, 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 380.00%. 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 35.85% 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

1.50% 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 1.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ericsson has recently increased by 6.55%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.6 / 5
• News Sentiment: 0.67

News Sentiment

Ericsson has a news sentiment score of 0.67. 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 news sentiment score is similar to the average news sentiment of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 8 news articles for Ericsson this week, compared to 6 articles on an average week.

Search Interest

Only 10 people have searched for ERIC on MarketBeat in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

MarketBeat Follows

4 people have added Ericsson to their MarketBeat watchlist in the last 30 days. This is an increase of 100% 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 start of the year. Since then, ERIC shares have increased by 3.3% and is now trading at $8.33.
View the best growth stocks for 2025 here.

How were Ericsson's earnings last quarter?

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

Does Ericsson have any subsidiaries?

Ericsson subsidiaries include CradlePoint, Genaker, CENX, Allolio&Konrad, Ericpol, NodePrime, FYI Television, and others.

Who are Ericsson's major shareholders?

Top institutional shareholders of Ericsson include Hotchkis & Wiley Capital Management LLC (3.25%), Acadian Asset Management LLC (2.62%), Primecap Management Co. CA (1.37%) and Goldman Sachs Group Inc. (0.14%).

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

• Record date for 3/27 Dividend: 3/27/2025
• Ex-Dividend for 3/27 Dividend: 3/27/2025
• Dividend Payable: 3/27/2025
• Last Earnings: 4/15/2025
• Today: 6/18/2025
• 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 Stock Price Target: $9.80
• High Stock Price Target: $9.80
• Low Stock Price Target: $9.80
• Potential Upside/Downside: +17.6%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 2 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.05
• Trailing P/E Ratio: 166.60
• Forward P/E Ratio: 17.35
• P/E Growth: 5.98
• 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: $23.45 billion
• Price / Sales: 1.19
• Cash Flow: $0.64 per share
• Price / Cash Flow: 12.98
• Book Value: $2.63 per share
• Price / Book: 3.17

Miscellaneous

• Outstanding Shares: 3,348,250,000
• Free Float: N/A
• Market Cap: $27.89 billion
• Optionable: Optionable
• Beta: 0.94