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

Ericsson (NASDAQ:ERIC) shares crossed 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.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on ERIC shares. Wall Street Zen downgraded shares of Ericsson from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 18th. Cfra Research upgraded Ericsson to a “hold” rating in a research report on Wednesday, October 15th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Ericsson in a research report on Monday. Barclays restated an “underweight” rating on shares of Ericsson in a report on Wednesday, October 15th. Finally, Danske cut shares of Ericsson to a “hold” rating in a research report on Wednesday, October 15th. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $9.80.

Ericsson Trading Down 0.3%

The business has a fifty day moving average price of $9.65 and a two-hundred day moving average price of $8.58. The company has a current ratio of 1.17, a quick ratio of 0.94 and a debt-to-equity ratio of 0.29. The firm has a market capitalization of $32.41 billion, a PE ratio of 13.08, a PEG ratio of 1.54 and a beta of 0.91.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of ERIC. Jump Financial LLC acquired a new position in Ericsson during the 2nd quarter worth $17,461,000. ABC Arbitrage SA grew its position in shares of Ericsson by 64.6% during the second quarter. ABC Arbitrage SA now owns 5,121,349 shares of the communications equipment provider’s stock worth $43,429,000 after buying an additional 2,009,723 shares in the last quarter. Northern Trust Corp increased its stake in shares of Ericsson by 106.6% during the first quarter. Northern Trust Corp now owns 3,659,696 shares of the communications equipment provider’s stock worth $28,399,000 after buying an additional 1,888,375 shares during the period. Jane Street Group LLC raised its holdings in Ericsson by 113.0% in the first quarter. Jane Street Group LLC now owns 2,387,985 shares of the communications equipment provider’s stock valued at $18,531,000 after acquiring an additional 1,266,788 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its stake in Ericsson by 42.9% in the second quarter. BNP Paribas Financial Markets now owns 3,350,029 shares of the communications equipment provider’s stock worth $28,408,000 after acquiring an additional 1,005,398 shares during the last quarter. 7.99% of the stock is currently owned by hedge funds and other institutional investors.

About Ericsson

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.