Ericsson (NASDAQ:ERIC) Share Price Breaks Above 200-Day Moving Average – What’s Next?

Shares of Ericsson (NASDAQ:ERIC) passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $10.96 and traded as high as $11.21. Ericsson shares last traded at $11.06, with a volume of 8,334,879 shares traded.

Key Headlines Impacting Ericsson

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Verizon and Ericsson are advancing AI-based automation of Verizon’s radio access network. Ericsson’s rApps are being field-tested in autonomous, closed-loop optimization, with the Advanced Antenna System Cell Shaper delivering reported gains of up to 8.9% in downlink throughput and 8% in uplink throughput. The performance results and deployment activity offer a concrete example of Ericsson’s network software capabilities, although no deal value was disclosed. Article: Verizon and Ericsson partner to transform AI-native Autonomous Networks
• Positive Sentiment: Ericsson is supporting VodafoneThree’s large mid-band portfolio, a collaboration that may reinforce its position supplying 5G network technology to major operators. The article headline does not specify financial terms or expected revenue. Article: Ericsson turbo-charges VodafoneThree’s massive mid-band portfolio
• Neutral Sentiment: Ericsson introduced a mobile-network system for detecting drones, with pilots planned for 2027. The technology could open a new use for telecom infrastructure, but commercialization and revenue contribution appear some way off. Article: Ericsson Adds Drone Detection to Mobile Networks with New ISAC System
• Neutral Sentiment: Ericsson and Telia are advancing outdoor 6G trials in Sweden, while Ericsson, MediaTek and T-Mobile US reported a multi-vendor pre-6G field trial. These projects support Ericsson’s longer-term technology positioning, but 6G remains an early-stage opportunity rather than an immediate earnings driver. Article: Telia Sweden, Ericsson advance 6G collaboration Article: MediaTek and Ericsson achieve multi-vendor pre-6G field trial with T-Mobile US
• Neutral Sentiment: Ericsson, Singtel and Singapore’s National University Health System expanded their connected-healthcare partnership. The announcement signals a potential application for Ericsson’s connectivity technology, but provides no financial details. Article: NUHS, Singtel and Ericsson expand connected-healthcare partnership

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on ERIC shares. Danske downgraded Ericsson from a “buy” rating to a “hold” rating in a research note on Friday, October 16th. Citigroup reiterated a “neutral” rating on shares of Ericsson in a research report on Thursday, October 15th. JPMorgan Chase & Co. cut their price objective on Ericsson from $11.40 to $10.20 and set a “neutral” rating for the company in a research report on Thursday, October 8th. Morgan Stanley downgraded Ericsson from an “equal weight” rating to an “underweight” rating and cut their price objective for the stock from $11.00 to $9.00 in a research report on Tuesday, September 22nd. Finally, Weiss Ratings lowered Ericsson from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, August 28th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $9.60.

Ericsson Stock Performance

The stock has a market cap of $37.28 billion, a price-to-earnings ratio of 18.13, a price-to-earnings-growth ratio of 1.89 and a beta of 0.97. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.16 and a quick ratio of 0.90. The stock’s 50-day moving average is $10.09 and its 200-day moving average is $10.96.

Ericsson (NASDAQ:ERIC) last released its earnings results on Thursday, October 15th. The communications equipment provider reported $0.18 EPS for the quarter, beating the consensus estimate of $0.14 by $0.04. Ericsson had a return on equity of 20.89% and a net margin of 8.31%. The firm had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.59 billion. During the same period in the prior year, the firm posted $1.37 earnings per share. The business’s quarterly revenue was up 5.8% compared to the same quarter last year. Analysts anticipate that Ericsson will post 0.64 EPS for the current fiscal year.

Ericsson Dividend Announcement

The firm also recently disclosed a dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 29th were given a $0.1579 dividend. The ex-dividend date of this dividend was Tuesday, September 29th. Ericsson’s dividend payout ratio is presently 32.79%.

Institutional Trading of Ericsson

Several large investors have recently added to or reduced their stakes in ERIC. Yousif Capital Management LLC raised its holdings in shares of Ericsson by 18.4% during the 3rd quarter. Yousif Capital Management LLC now owns 14,891 shares of the communications equipment provider’s stock valued at $136,000 after buying an additional 2,315 shares during the period. Public Employees Retirement System of Ohio acquired a new position in Ericsson during the 2nd quarter worth approximately $15,812,000. Bank of New York Mellon Corp lifted its position in Ericsson by 8.5% during the 1st quarter. Bank of New York Mellon Corp now owns 160,581 shares of the communications equipment provider’s stock worth $1,810,000 after acquiring an additional 12,534 shares in the last quarter. Finally, Advisors Preferred LLC acquired a new position in Ericsson during the 1st quarter worth approximately $493,000. 7.99% of the stock is currently owned by institutional investors and hedge funds.

Ericsson Company Profile

Ericsson is a Swedish technology company that provides telecommunications equipment, software, and services to communications service providers and enterprise customers worldwide. Headquartered in Stockholm, the company develops infrastructure used to build and operate mobile and fixed networks, including solutions supporting 4G, 5G, and other advanced communications technologies.

Its main offerings include radio access network equipment, core network platforms, transport systems, network management software, cloud-based communications solutions, and related professional services.