Ericsson (NASDAQ:ERIC) Sees Large Volume Increase – Should You Buy?

Shares of Ericsson (NASDAQ:ERIC) saw an uptick in trading volume on Tuesday . Approximately 21,634,859 shares traded hands during trading, an increase of 98% from the previous session’s volume of 10,927,326 shares.The stock last traded at $9.9350 and had previously closed at $9.67.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on ERIC shares. Danske raised Ericsson from a “hold” rating to a “buy” rating in a research note on Wednesday, July 15th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Ericsson in a research note on Tuesday, June 2nd. Wall Street Zen cut shares of Ericsson from a “buy” rating to a “hold” rating in a report on Saturday, April 25th. Finally, Citigroup reissued a “neutral” rating on shares of Ericsson in a research report on Wednesday, July 15th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Ericsson has a consensus rating of “Hold” and an average target price of $11.00.

Ericsson Stock Performance

The stock has a 50-day moving average of $11.45 and a 200-day moving average of $11.34. The firm has a market cap of $32.78 billion, a price-to-earnings ratio of 12.48, a price-to-earnings-growth ratio of 1.84 and a beta of 0.93. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.93 and a current ratio of 1.12.

Ericsson (NASDAQ:ERIC) last released its quarterly earnings results on Tuesday, June 30th. The communications equipment provider reported $0.13 earnings per share for the quarter. The firm had revenue of $5.43 billion during the quarter. Ericsson had a return on equity of 20.63% and a net margin of 10.72%. As a group, analysts anticipate that Ericsson will post 0.61 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ERIC. Public Employees Retirement System of Ohio increased its stake in Ericsson by 26.3% in the 1st quarter. Public Employees Retirement System of Ohio now owns 1,418,076 shares of the communications equipment provider’s stock valued at $15,982,000 after buying an additional 295,185 shares during the last quarter. Atlas Capital Advisors Inc. bought a new stake in Ericsson during the 4th quarter worth about $429,000. BNP Paribas Financial Markets boosted its stake in shares of Ericsson by 60.5% during the 4th quarter. BNP Paribas Financial Markets now owns 1,645,672 shares of the communications equipment provider’s stock worth $15,881,000 after buying an additional 620,144 shares during the last quarter. ABC Arbitrage SA boosted its stake in shares of Ericsson by 36.7% during the 4th quarter. ABC Arbitrage SA now owns 4,389,009 shares of the communications equipment provider’s stock worth $42,354,000 after buying an additional 1,179,194 shares during the last quarter. Finally, Neuberger Berman Group LLC grew its holdings in shares of Ericsson by 33.9% in the 4th quarter. Neuberger Berman Group LLC now owns 43,232 shares of the communications equipment provider’s stock valued at $417,000 after acquiring an additional 10,955 shares in the last quarter. Institutional investors and hedge funds 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.