Ericsson (NASDAQ:ERIC) Short Interest Up 37.8% in March

Ericsson (NASDAQ:ERIC) was the recipient of a significant growth in short interest in March. As of March 31st, there was short interest totaling 54,979,236 shares, a growth of 37.8% from the March 15th total of 39,897,207 shares. Based on an average daily volume of 10,206,667 shares, the days-to-cover ratio is currently 5.4 days. Approximately 1.6% of the company’s shares are sold short.

Hedge Funds Weigh In On Ericsson

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Quantitative Investment Management LLC acquired a new position in shares of Ericsson in the third quarter worth approximately $1,349,000. Dynamic Technology Lab Private Ltd acquired a new position in shares of Ericsson in the first quarter worth approximately $126,000. Dorsey & Whitney Trust CO LLC lifted its stake in shares of Ericsson by 7.2% in the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 42,902 shares of the communications equipment provider’s stock worth $414,000 after acquiring an additional 2,869 shares during the period. Russell Investments Group Ltd. increased its holdings in Ericsson by 19.1% in the fourth quarter. Russell Investments Group Ltd. now owns 1,903,298 shares of the communications equipment provider’s stock worth $18,603,000 after purchasing an additional 304,974 shares in the last quarter. Finally, Defiance ETFs LLC bought a new stake in Ericsson in the fourth quarter worth approximately $13,766,000. 7.99% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Ericsson

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Board authorizes a SEK 15 billion (≈$1.63B) buyback to return surplus liquidity and adjust capital structure, which reduces share count and supports EPS/capital allocation. Ericsson initiates share buyback program
• Positive Sentiment: Multiple outlets highlight Ericsson as a top growth/value stock based on 5G exposure and attractive valuation metrics, which can draw investor interest and support multiple expansion. Why Ericsson (ERIC) is a Top Growth Stock for the Long-Term
• Positive Sentiment: Industry recognition: ABI Research names Ericsson a leader in Network API Platforms for internal exposure — a sign of strength in software/automation offerings that support 5G monetization and operator spending. Nokia and Ericsson Named Leaders in ABI Research’s Network API Platforms for Internal Exposure Ranking
• Positive Sentiment: Enterprise/private 5G is flagged as a multi-cycle revenue engine for Ericsson, supporting medium-term top-line and services growth beyond core RAN hardware. ‘Three revenue-stream cycles’ – enterprise 5G is a growth engine, says Ericsson
• Negative Sentiment: Near-term outlook risk: earnings previews note that sales and earnings are expected to fall in the upcoming quarter, which could pressure guidance-driven sentiment and offset some optimism from the buyback. Ericsson Sales and Earnings Expected to Fall — Earnings Preview

Ericsson Price Performance

Ericsson stock opened at $12.16 on Friday. The stock’s 50 day moving average is $11.43 and its 200 day moving average is $10.23. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.29 and a quick ratio of 1.08. The firm has a market cap of $40.99 billion, a P/E ratio of 13.82, a P/E/G ratio of 1.90 and a beta of 0.91. Ericsson has a one year low of $7.16 and a one year high of $12.19.

Ericsson Announces Dividend

The business also recently disclosed a dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, April 2nd were paid a $0.1663 dividend. The ex-dividend date of this dividend was Thursday, April 2nd. Ericsson’s payout ratio is currently 25.00%.

Analysts Set New Price Targets

ERIC has been the topic of a number of recent research reports. Weiss Ratings reissued a “buy (b-)” rating on shares of Ericsson in a research note on Monday, December 29th. Morgan Stanley initiated coverage on Ericsson in a research note on Monday, February 9th. They set an “equal weight” rating and a $11.00 price target on the stock. Wall Street Zen lowered Ericsson from a “strong-buy” rating to a “buy” rating in a research note on Saturday, April 11th. Argus raised Ericsson to a “hold” rating in a research note on Monday, January 26th. Finally, Citigroup reissued a “neutral” rating on shares of Ericsson in a research note on Friday, January 16th. One analyst has rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $11.00.

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.