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

Shares of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) gapped down before the market opened on Friday following a weaker than expected earnings announcement. 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.

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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. StockNews.com raised shares of Telefonaktiebolaget LM Ericsson (publ) from a “buy” rating to a “strong-buy” rating in a research note 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 research report on Monday, October 21st.

Institutional Trading of Telefonaktiebolaget LM Ericsson (publ)

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP lifted its position in Telefonaktiebolaget LM Ericsson (publ) by 13.8% during the 2nd quarter. Dimensional Fund Advisors LP now owns 161,719 shares of the communications equipment provider’s stock worth $998,000 after acquiring an additional 19,562 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in shares of Telefonaktiebolaget LM Ericsson (publ) by 1.8% during the second quarter. Mercer Global Advisors Inc. ADV now owns 102,448 shares of the communications equipment provider’s stock valued at $632,000 after purchasing an additional 1,777 shares during the period. Profund Advisors LLC boosted its stake in Telefonaktiebolaget LM Ericsson (publ) by 3.0% during the second quarter. Profund Advisors LLC now owns 62,838 shares of the communications equipment provider’s stock valued at $388,000 after buying an additional 1,823 shares in the last quarter. Marshall Wace LLP boosted its stake in Telefonaktiebolaget LM Ericsson (publ) by 39.3% during the second quarter. Marshall Wace LLP now owns 1,898,019 shares of the communications equipment provider’s stock valued at $11,711,000 after buying an additional 535,933 shares in the last quarter. Finally, Squarepoint Ops LLC acquired a new position in shares of Telefonaktiebolaget LM Ericsson (publ) in the 2nd quarter valued at $3,027,000. Hedge funds and other institutional investors own 7.99% of the company’s stock.

Telefonaktiebolaget LM Ericsson (publ) Price Performance

The firm has a market cap of $26.24 billion, a price-to-earnings 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. The stock has a 50-day moving average of $8.22 and a two-hundred day moving average of $7.69.

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.