Ericsson (ERIC) Stock Price, News & Analysis

Company Overview

Ericsson is a Swedish multinational networking and telecommunications company founded in 1876 by Lars Magnus Ericsson. Headquartered in Stockholm, the company has evolved from a telegraph repair shop into a global leader in communications technology. Ericsson is publicly traded on the Nasdaq Stockholm and the Nasdaq in the U.S. under the symbol ERIC.

The company’s core business encompasses the design, development and deployment of mobile and fixed network infrastructure. Ericsson supplies hardware and software for 5G and 4G networks, radio access networks (RAN), core network solutions, transport and optical networks, as well as cloud-native platforms. In addition, it offers digital services such as network virtualization, IoT platforms, charging and policy management, and managed services to help operators optimize and automate their network operations.

With operations in more than 180 countries, Ericsson serves major telecom operators across Europe, the Middle East, Africa, Asia-Pacific, Latin America and North America. Its equipment and services support leading providers such as Verizon, AT&T, T-Mobile, Vodafone and China Mobile. The company also collaborates with ecosystem partners, enterprises and public-sector organizations to enable private wireless networks and industry-specific IoT deployments.

Under the leadership of President and CEO Börje Ekholm, who took the helm in January 2017, Ericsson employs roughly 100,000 people worldwide. The board of directors is chaired by Leif Johansson, and the company maintains a global organizational structure with regional and market-focused teams to address evolving customer needs. Ericsson continues to invest in research and development, with a focus on expanding its 5G portfolio and exploring next-generation technologies such as 6G.

Key Stats

• Today's Range: $7.94 to $8.04
• 50-Day Range: $7.20 to $8.55
• 52-Week Range: $6.64 to $8.99
• Volume: 11.58 million shs
• Average Volume: 7.49 million shs
• Market Capitalization: $26.82 billion
• P/E Ratio: 16.02
• Dividend Yield: 2.37%
• Price Target: $9.80
• Consensus Rating: Reduce

Ericsson Stock Analysis - MarketRank™

Ericsson scored higher than 72% of companies evaluated by MarketBeat, and ranked 276th out of 647 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: 2.8 / 5
• Analyst Rating: Reduce

Consensus Rating

Ericsson has received a consensus rating of Reduce. The company's average rating score is 1.67, and is based on no buy ratings, 2 hold ratings, and 1 sell rating.

Upside Potential

Ericsson has a consensus price target of $9.80, representing about 22.3% upside from its current price of $8.01.

Amount of Analyst Coverage

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

Earnings and Valuation

• Score: 2.5 / 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 16.02, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 278.13.

Price to Earnings Ratio vs. Sector

The P/E ratio of Ericsson is 16.02, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 440.22.

Price to Earnings Growth Ratio

Ericsson has a PEG Ratio of 12.82. 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 3.05. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

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

Percentage of Shares Shorted

0.81% 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 1.5, 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 9.97%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Ericsson pays a meaningful dividend of 2.36%, 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 38.00%. This payout ratio is at a healthy, sustainable level, below 75%.

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

0.81% 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 1.5, 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 9.97%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.1 / 5
• News Sentiment: 0.75

News Sentiment

Ericsson has a news sentiment score of 0.75. 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 7 articles on an average week.

Search Interest

Only 6 people have searched for ERIC on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.

MarketBeat Follows

Only 2 people have added Ericsson to their MarketBeat watchlist in the last 30 days. This is a decrease of -50% 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 2025. Since then, ERIC shares have decreased by 0.6% and is now trading at $8.01.

How were Ericsson's earnings last quarter?

Ericsson (NASDAQ:ERIC) released its quarterly earnings data on Tuesday, July, 15th. The communications equipment provider reported $0.14 EPS for the quarter, topping the consensus estimate of $0.12 by $0.02. The company's revenue was down 6.2% on a year-over-year basis.
Read the conference call transcript.

Does Ericsson have any subsidiaries?

Ericsson subsidiaries include these companies: CradlePoint, Genaker, CENX, Allolio&Konrad, Ericpol, NodePrime, FYI Television, and more.

Who are Ericsson's major shareholders?

Top institutional shareholders of Ericsson include ABC Arbitrage SA (0.15%), BNP Paribas Financial Markets (0.10%), Russell Investments Group Ltd. (0.08%) and Jump Financial LLC (0.06%).

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: 7/15/2025
• Dividend Payable: 9/06/2025
• Today: 9/07/2025
• Record date for 9/6 Dividend: 9/29/2025
• Ex-Dividend for 9/6 Dividend: 9/29/2025
• Next Earnings (Estimated): 10/21/2025
• 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: +22.3%
• Consensus Rating: Reduce
• Rating Score (0-4): 1.67
• Research Coverage: 3 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.50
• Trailing P/E Ratio: 16.02
• Forward P/E Ratio: 16.69
• P/E Growth: 12.82
• Net Income: $1.89 million
• Net Margins: 7.06%
• Pretax Margin: 10.17%
• Return on Equity: 21.17%
• Return on Assets: 6.64%

Debt

• Debt-to-Equity Ratio: 0.35
• Current Ratio: 1.09
• Quick Ratio: 0.86

Sales & Book Value

• Annual Sales: $23.45 billion
• Price / Sales: 1.14
• Cash Flow: $0.65 per share
• Price / Cash Flow: 12.40
• Book Value: $2.63 per share
• Price / Book: 3.05

Miscellaneous

• Outstanding Shares: 3,348,250,000
• Free Float: N/A
• Market Cap: $26.82 billion
• Optionable: Optionable
• Beta: 0.87