Ericsson (NASDAQ:ERIC) Stock Crosses Above 200-Day Moving Average – Here’s Why

Ericsson (NASDAQ:ERIC)’s stock price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $8.58 and traded as high as $9.75. Ericsson shares last traded at $9.68, with a volume of 3,439,243 shares.

Analysts Set New Price Targets

ERIC has been the subject of several recent research reports. Citigroup reissued a “neutral” rating on shares of Ericsson in a research report on Wednesday, October 22nd. Jefferies Financial Group raised shares of Ericsson to a “hold” rating in a research report on Monday, October 13th. Wall Street Zen cut shares of Ericsson from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 18th. Cfra Research upgraded shares of Ericsson to a “hold” rating in a research note on Wednesday, October 15th. Finally, Danske cut shares of Ericsson to a “hold” rating in a research report on Wednesday, October 15th. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $9.80.

Ericsson Stock Down 0.3%

The company’s 50-day moving average is $9.65 and its 200 day moving average is $8.58. The stock has a market capitalization of $32.41 billion, a PE ratio of 13.08, a price-to-earnings-growth ratio of 1.54 and a beta of 0.91. The company has a current ratio of 1.17, a quick ratio of 0.94 and a debt-to-equity ratio of 0.29.

Ericsson (NASDAQ:ERIC) last released its earnings results on Tuesday, October 14th. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.03. The firm had revenue of $5.97 billion for the quarter, compared to the consensus estimate of $57.16 billion. Ericsson had a return on equity of 21.50% and a net margin of 10.44%.The firm’s revenue was down 9.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.14 EPS. As a group, analysts anticipate that Ericsson will post 0.48 EPS for the current year.

Institutional Investors Weigh In On Ericsson

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Compound Planning Inc. lifted its holdings in Ericsson by 3.2% during the first quarter. Compound Planning Inc. now owns 41,540 shares of the communications equipment provider’s stock valued at $322,000 after purchasing an additional 1,288 shares in the last quarter. Jones Financial Companies Lllp increased its stake in Ericsson by 12.4% during the 3rd quarter. Jones Financial Companies Lllp now owns 13,017 shares of the communications equipment provider’s stock worth $107,000 after buying an additional 1,441 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Ericsson by 0.7% during the second quarter. Geode Capital Management LLC now owns 250,389 shares of the communications equipment provider’s stock valued at $2,123,000 after acquiring an additional 1,658 shares during the last quarter. Brown Brothers Harriman & Co. purchased a new position in shares of Ericsson in the third quarter valued at approximately $28,000. Finally, Cromwell Holdings LLC boosted its stake in shares of Ericsson by 72.8% in the second quarter. Cromwell Holdings LLC now owns 10,276 shares of the communications equipment provider’s stock worth $87,000 after acquiring an additional 4,330 shares during the last quarter. Hedge funds and other institutional investors own 7.99% of the company’s stock.

Ericsson Company Profile

Ericsson AB is a Swedish multinational telecommunications equipment and services company headquartered in Stockholm. Founded in 1876 by Lars Magnus Ericsson, the company designs, develops and sells infrastructure, software and services that enable mobile and fixed-line networks worldwide. Ericsson serves a global customer base that includes mobile network operators, enterprise customers and public-sector organizations across Europe, the Americas, Asia-Pacific, the Middle East and Africa.

The company’s core activities center on building and modernizing network infrastructure, with a particular focus on radio access networks (RAN), core network software, cloud-native solutions and network management systems.