Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) Shares Gap Down After Earnings Miss

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $8.90, but opened at $7.98. Telefonaktiebolaget LM Ericsson (publ) shares last traded at $7.88, with a volume of 8,269,693 shares trading hands.

The communications equipment provider reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.04). Telefonaktiebolaget LM Ericsson (publ) had a positive return on equity of 13.31% and a negative net margin of 0.47%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. StockNews.com upgraded shares of Telefonaktiebolaget LM Ericsson (publ) from a “buy” rating to a “strong-buy” rating in a report on Wednesday, October 16th. JPMorgan Chase & Co. lifted their price objective on shares of Telefonaktiebolaget LM Ericsson (publ) from $5.90 to $6.70 and gave the stock a “neutral” rating in a report on Monday, October 21st.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. DigitalBridge Group Inc. increased its position in shares of Telefonaktiebolaget LM Ericsson (publ) by 18.6% in the second quarter. DigitalBridge Group Inc. now owns 5,018,017 shares of the communications equipment provider’s stock valued at $30,961,000 after acquiring an additional 785,261 shares during the period. FMR LLC increased its position in shares of Telefonaktiebolaget LM Ericsson (publ) by 23.8% in the third quarter. FMR LLC now owns 2,412,480 shares of the communications equipment provider’s stock valued at $18,287,000 after acquiring an additional 463,415 shares during the period. Two Sigma Advisers LP increased its position in shares of Telefonaktiebolaget LM Ericsson (publ) by 17,266.7% in the third quarter. Two Sigma Advisers LP now owns 2,031,900 shares of the communications equipment provider’s stock valued at $15,402,000 after acquiring an additional 2,020,200 shares during the period. Marshall Wace LLP boosted its stake in shares of Telefonaktiebolaget LM Ericsson (publ) by 39.3% during the 2nd quarter. Marshall Wace LLP now owns 1,898,019 shares of the communications equipment provider’s stock valued at $11,711,000 after purchasing an additional 535,933 shares in the last quarter. Finally, Verition Fund Management LLC boosted its stake in shares of Telefonaktiebolaget LM Ericsson (publ) by 6.9% during the 3rd quarter. Verition Fund Management LLC now owns 1,142,228 shares of the communications equipment provider’s stock valued at $8,658,000 after purchasing an additional 73,320 shares in the last quarter. 7.99% of the stock is currently owned by institutional investors.

Telefonaktiebolaget LM Ericsson (publ) Price Performance

The business’s 50 day moving average price is $8.22 and its two-hundred day moving average price is $7.69. The stock has a market cap of $26.24 billion, a P/E ratio of -263.23 and a beta of 0.79. The company has a current ratio of 1.19, a quick ratio of 0.95 and a debt-to-equity ratio of 0.39.

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other.