Ericsson (NASDAQ:ERIC – Get Free Report) was the target of some unusual options trading on Tuesday. Investors purchased 5,236 put options on the company. This represents an increase of 117% compared to the average volume of 2,412 put options.
Ericsson Trading Down 13.7%
Shares of ERIC stock opened at $10.11 on Wednesday. Ericsson has a 52-week low of $7.16 and a 52-week high of $13.77. The business’s fifty day moving average is $12.06 and its 200 day moving average is $11.33. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.93 and a current ratio of 1.12. The company has a market capitalization of $34.08 billion, a PE ratio of 12.80, a price-to-earnings-growth ratio of 2.05 and a beta of 0.93.
Ericsson (NASDAQ:ERIC – Get Free Report) last announced its earnings results on Tuesday, July 14th. The communications equipment provider reported $0.13 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.13. The business had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.66 billion. Ericsson had a return on equity of 22.17% and a net margin of 10.80%. On average, equities research analysts anticipate that Ericsson will post 0.64 EPS for the current fiscal year.
Key Headlines Impacting Ericsson
- Positive Sentiment: Ericsson said AI should become an upside driver for mobile networks over time, and the company highlighted advancing AI network use cases as a potential growth tailwind. Ericsson CEO: Expect AI to be an upside driver for mobile networks
- Positive Sentiment: The company’s Q2 results were mixed but resilient on profitability, with margin performance holding up better than feared and EPS meeting estimates. Ericsson Delivers Margin-Resilient Q2 2026 as Sales Ease and AI Network Use Cases Advance
- Neutral Sentiment: Ericsson also continued its share buyback program, which can support shareholder returns but is unlikely to change the near-term earnings narrative. Ericsson Buys Back 2.5 Million Shares in July Capital Management Push
- Negative Sentiment: Q2 revenue missed estimates, and lower IPR licensing sales hurt results even as some core margins improved. Ericsson Q2 Earnings Meet Estimates Despite Margin Resilience
- Negative Sentiment: Management warned that rising component costs tied to the AI boom could weigh on profitability in coming quarters, reinforcing concerns that margins may soften. Ericsson Says AI Boom Is Driving up Component Costs, Will Hit Results in Coming Quarters
- Negative Sentiment: Investors also reacted to a cautious Q3 outlook and signs of weaker profitability in the Networks business, contributing to the selloff. Ericsson Cautions on Lower Profitability Due to Rising Component-Cost Pressure
Wall Street Analyst Weigh In
ERIC has been the subject of a number of research reports. Citigroup reiterated a “neutral” rating on shares of Ericsson in a research report on Tuesday, April 28th. Weiss Ratings reissued a “buy (b)” rating on shares of Ericsson in a research report on Tuesday, June 2nd. Finally, Wall Street Zen cut shares of Ericsson from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th. One equities research analyst has rated the stock with a Buy rating, six have issued 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 “Reduce” and an average target price of $11.00.
View Our Latest Report on ERIC
Hedge Funds Weigh In On Ericsson
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. ABC Arbitrage SA raised its position 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 valued at $42,354,000 after buying an additional 1,179,194 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new position in Ericsson in the fourth quarter worth $429,000. BNP Paribas Financial Markets grew its position in Ericsson by 60.5% in the fourth quarter. BNP Paribas Financial Markets now owns 1,645,672 shares of the communications equipment provider’s stock worth $15,881,000 after acquiring an additional 620,144 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Ericsson by 8.5% in the first quarter. Bank of New York Mellon Corp now owns 160,581 shares of the communications equipment provider’s stock valued at $1,810,000 after acquiring an additional 12,534 shares during the last quarter. Finally, Advisors Preferred LLC purchased a new stake in Ericsson during the first quarter valued at about $493,000. 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.
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