Telefonaktiebolaget LM Ericsson (publ) (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: $7.97 to $8.06
• 50-Day Range: $7.22 to $8.59
• 52-Week Range: $4.77 to $8.62
• Volume: 6.12 million shs
• Average Volume: 16.65 million shs
• Market Capitalization: $26.76 billion
• P/E Ratio: N/A
• Dividend Yield: 2.12%
• Price Target: $6.70
• Consensus Rating: Reduce

Telefonaktiebolaget LM Ericsson (publ) Stock Analysis - MarketRank™

Telefonaktiebolaget LM Ericsson (publ) scored higher than 21% of companies evaluated by MarketBeat, and ranked 588th out of 658 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: 0.9 / 5
• Analyst Rating: Reduce

Consensus Rating

Telefonaktiebolaget LM Ericsson (publ) has received a consensus rating of Reduce. The company's average rating score is 1.75, and is based on 1 buy rating, 1 hold rating, and 2 sell ratings.

Amount of Analyst Coverage

Telefonaktiebolaget LM Ericsson (publ) has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 13.04%

Earnings Growth

Earnings for Telefonaktiebolaget LM Ericsson (publ) are expected to grow by 13.04% in the coming year, from $0.46 to $0.52 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Telefonaktiebolaget LM Ericsson (publ) is -265.67, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Telefonaktiebolaget LM Ericsson (publ) is -265.67, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

Telefonaktiebolaget LM Ericsson (publ) has a P/B Ratio of 3.24. 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

0.97% of the float of Telefonaktiebolaget LM Ericsson (publ) has been sold short.

Short Interest Ratio / Days to Cover

Telefonaktiebolaget LM Ericsson (publ) has a short interest ratio ("days to cover") of 1.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Telefonaktiebolaget LM Ericsson (publ) has recently increased by 11.50%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Telefonaktiebolaget LM Ericsson (publ) pays a meaningful dividend of 2.13%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Telefonaktiebolaget LM Ericsson (publ) does not have a long track record of dividend growth.

Dividend Sustainability

Based on earnings estimates, Telefonaktiebolaget LM Ericsson (publ) will have a dividend payout ratio of 32.69% next year. This indicates that Telefonaktiebolaget LM Ericsson (publ) will be able to sustain or increase its dividend.

Sustainability and ESG

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

Percentage of Shares Shorted

0.97% of the float of Telefonaktiebolaget LM Ericsson (publ) has been sold short.

Short Interest Ratio / Days to Cover

Telefonaktiebolaget LM Ericsson (publ) has a short interest ratio ("days to cover") of 1.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Telefonaktiebolaget LM Ericsson (publ) has recently increased by 11.50%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.7 / 5
• News Sentiment: 0.94

News Sentiment

Telefonaktiebolaget LM Ericsson (publ) has a news sentiment score of 0.94. 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 higher news sentiment than the 0.55 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 5 news articles for Telefonaktiebolaget LM Ericsson (publ) this week, compared to 5 articles on an average week.

Search Interest

7 people have searched for ERIC on MarketBeat in the last 30 days. This is an increase of 250% compared to the previous 30 days.

MarketBeat Follows

Only 3 people have added Telefonaktiebolaget LM Ericsson (publ) to their MarketBeat watchlist in the last 30 days. This is a decrease of -25% 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, Telefonaktiebolaget LM Ericsson (publ) insiders have not sold or bought any company stock.

Percentage Held by Institutions

Only 7.99% of the stock of Telefonaktiebolaget LM Ericsson (publ) is held by institutions.

ERIC Stock Analysis - Frequently Asked Questions

How have ERIC shares performed this year?

Telefonaktiebolaget LM Ericsson (publ)'s stock was trading at $6.30 on January 1st, 2024. Since then, ERIC stock has increased by 26.5% and is now trading at $7.97.
View the best growth stocks for 2024 here.

How were Telefonaktiebolaget LM Ericsson (publ)'s earnings last quarter?

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) released its quarterly earnings data on Tuesday, October, 15th. The communications equipment provider reported $0.11 EPS for the quarter, topping the consensus estimate of $0.09 by $0.02. The communications equipment provider earned $5.93 billion during the quarter, compared to the consensus estimate of $5.73 billion. Telefonaktiebolaget LM Ericsson (publ) had a negative net margin of 0.47% and a positive trailing twelve-month return on equity of 13.31%.

Does Telefonaktiebolaget LM Ericsson (publ) have any subsidiaries?

Telefonaktiebolaget LM Ericsson (publ) subsidiaries include CradlePoint, Genaker, CENX, Allolio&Konrad, Ericpol, NodePrime, FYI Television, and others.

Who are Telefonaktiebolaget LM Ericsson (publ)'s major shareholders?

Telefonaktiebolaget LM Ericsson (publ)'s top institutional shareholders include Primecap Management Co. CA (1.43%), FMR LLC (0.07%), Gateway Investment Advisers LLC (0.03%) and Natixis Advisors LLC (0.02%).

How do I buy shares of Telefonaktiebolaget LM Ericsson (publ)?

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.
Compare Top Brokerages Here.

What other stocks do shareholders of Telefonaktiebolaget LM Ericsson (publ) own?

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

Company Calendar

• Ex-Dividend for 10/2 Dividend: 10/02/2024
• Dividend Payable: 10/02/2024
• Last Earnings: 10/15/2024
• Today: 11/13/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 1/28/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Radio & t.v. communications equipment
• Sub-Industry: N/A
• Current Symbol: NASDAQ:ERIC
• CUSIP: N/A
• CIK: 717826
• Web: www.ericsson.com
• Phone: (610) 719-0000
• Fax: 46-8719-4222
• Employees: 99,952
• Year Founded: 1876

Price Target and Rating

• Average Stock Price Target: $6.70
• High Stock Price Target: $6.70
• Low Stock Price Target: $6.70
• Potential Upside/Downside: -16.1%
• Consensus Rating: Reduce
• Rating Score (0-4): 1.75
• Research Coverage: 4 Analysts

Profitability

• EPS (Most Recent Fiscal Year): ($0.03)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: 17.37
• P/E Growth: N/A
• Net Income: $-2,493,860,000.00
• Net Margins: -0.47%
• Pretax Margin: -0.15%
• Return on Equity: 13.31%
• Return on Assets: 4.33%

Debt

• Debt-to-Equity Ratio: 0.39
• Current Ratio: 1.19
• Quick Ratio: 0.95

Sales & Book Value

• Annual Sales: $24.83 billion
• Price / Sales: 1.07
• Cash Flow: $0.76 per share
• Price / Cash Flow: 10.46
• Book Value: $2.46 per share
• Price / Book: 3.25

Miscellaneous

• Outstanding Shares: 3,332,670,000
• Free Float: N/A
• Market Cap: $26.63 billion
• Optionable: Optionable
• Beta: 0.81