Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) Shares Gap Up Following Earnings Beat

Shares of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.79, but opened at $5.11. Telefonaktiebolaget LM Ericsson (publ) shares last traded at $5.01, with a volume of 13,036,546 shares changing hands.

The communications equipment provider reported $0.07 EPS for the quarter, beating the consensus estimate of $0.05 by $0.02. The company had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.33 billion. Telefonaktiebolaget LM Ericsson (publ) had a negative net margin of 9.82% and a positive return on equity of 11.77%.

Telefonaktiebolaget LM Ericsson (publ) Increases Dividend

The company also recently declared a dividend, which was paid on Wednesday, April 3rd. Investors of record on Friday, April 5th were issued a dividend of $0.1293 per share. This is an increase from Telefonaktiebolaget LM Ericsson (publ)’s previous dividend of $0.08. The ex-dividend date of this dividend was Thursday, April 4th. Telefonaktiebolaget LM Ericsson (publ)’s dividend payout ratio is presently -23.29%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on ERIC. TheStreet upgraded shares of Telefonaktiebolaget LM Ericsson (publ) from a “d+” rating to a “c-” rating in a research note on Tuesday, January 9th. UBS Group downgraded shares of Telefonaktiebolaget LM Ericsson (publ) from a “neutral” rating to a “sell” rating in a research note on Wednesday, January 31st. Finally, Barclays downgraded shares of Telefonaktiebolaget LM Ericsson (publ) from an “equal weight” rating to an “underweight” rating in a research note on Friday, January 19th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $5.90.

Institutional Investors Weigh In On Telefonaktiebolaget LM Ericsson (publ)

Hedge funds have recently modified their holdings of the business. Planned Solutions Inc. purchased a new stake in shares of Telefonaktiebolaget LM Ericsson (publ) in the 4th quarter worth approximately $38,000. Lake Street Advisors Group LLC purchased a new stake in shares of Telefonaktiebolaget LM Ericsson (publ) in the 4th quarter worth approximately $64,000. NBC Securities Inc. lifted its position in shares of Telefonaktiebolaget LM Ericsson (publ) by 258.1% in the 1st quarter. NBC Securities Inc. now owns 10,744 shares of the communications equipment provider’s stock worth $59,000 after purchasing an additional 7,744 shares during the period. 626 Financial LLC purchased a new stake in shares of Telefonaktiebolaget LM Ericsson (publ) in the 4th quarter worth approximately $72,000. Finally, Dorsey & Whitney Trust CO LLC lifted its position in shares of Telefonaktiebolaget LM Ericsson (publ) by 31.2% in the 3rd quarter. Dorsey & Whitney Trust CO LLC now owns 13,457 shares of the communications equipment provider’s stock worth $65,000 after purchasing an additional 3,201 shares during the period. Hedge funds and other institutional investors own 7.99% of the company’s stock.

Telefonaktiebolaget LM Ericsson (publ) Price Performance

The firm’s 50-day moving average price is $5.38 and its two-hundred day moving average price is $5.34. The stock has a market cap of $16.42 billion, a PE ratio of -6.75 and a beta of 0.76. The company has a current ratio of 1.20, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30.

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.