Ericsson (NASDAQ:ERIC) Shares Gap Down – Time to Sell?

Ericsson (NASDAQ:ERIC)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $11.72, but opened at $10.51. Ericsson shares last traded at $10.3150, with a volume of 7,201,071 shares changing hands.

Ericsson News Roundup

Here are the key news stories impacting Ericsson this week:

• Negative Sentiment: Ericsson’s Q2 2026 results fell short on revenue, and the company warned that higher component costs could weigh on profitability into future quarters. Ericsson Says AI Boom Is Driving up Component Costs, Will Hit Results in Coming Quarters
• Negative Sentiment: Several reports highlighted weaker sales, especially in North America and the Networks segment, along with a cautious outlook for third-quarter network margins. Ericsson Stock Drops On Weak Q2, Cautious View On Q3 Networks Margin
• Neutral Sentiment: Ericsson said AI-related use cases and “physical AI” could become a longer-term growth driver, offering some offset to near-term margin pressure. Ericsson CEO: Expect AI to be an upside driver for mobile networks
• Neutral Sentiment: The company also announced efforts to raise telecom equipment prices to help offset rising input costs, which may support margins but could affect demand. Ericsson raises telecom equipment prices amid component costs and AI
• Negative Sentiment: Legal attention is also building after a new investor investigation notice tied to the post-earnings stock drop and alleged losses from the Q2 miss. Ericsson Investigation Notice: SueWallSt Notifies Investors of Pending Investigation Into Ericsson (ERIC)

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Danske raised Ericsson from a “hold” rating to a “buy” rating in a research note on Wednesday. Citigroup reaffirmed a “neutral” rating on shares of Ericsson in a report on Wednesday. Weiss Ratings reiterated a “buy (b)” rating on shares of Ericsson in a research report on Tuesday, June 2nd. Finally, Wall Street Zen downgraded shares of Ericsson from a “buy” rating to a “hold” rating in a report on Saturday, April 25th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Ericsson presently has a consensus rating of “Hold” and a consensus price target of $11.00.

Ericsson Stock Down 0.7%

The company has a quick ratio of 0.93, a current ratio of 1.12 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $33.95 billion, a P/E ratio of 12.91, a PEG ratio of 1.79 and a beta of 0.93. The company has a fifty day moving average price of $12.02 and a 200-day moving average price of $11.34.

Ericsson (NASDAQ:ERIC) last released its quarterly earnings data on Tuesday, July 14th. The communications equipment provider reported $0.13 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.13. Ericsson had a return on equity of 20.67% and a net margin of 10.72%.The business had revenue of $5.43 billion for the quarter, compared to the consensus estimate of $5.66 billion. As a group, research analysts forecast that Ericsson will post 0.64 EPS for the current fiscal year.

Institutional Trading of Ericsson

Several hedge funds have recently made changes to their positions in the business. Brown Brothers Harriman & Co. purchased a new stake in Ericsson during the third quarter valued at approximately $28,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Ericsson in the 1st quarter worth approximately $126,000. Hennessy Advisors Inc. boosted its holdings in shares of Ericsson by 10.3% in the 4th quarter. Hennessy Advisors Inc. now owns 16,324 shares of the communications equipment provider’s stock worth $158,000 after purchasing an additional 1,518 shares during the period. LSV Asset Management increased its position in shares of Ericsson by 14.3% during the 4th quarter. LSV Asset Management now owns 39,200 shares of the communications equipment provider’s stock valued at $378,000 after purchasing an additional 4,900 shares during the last quarter. Finally, Brooklyn Investment Group raised its holdings in Ericsson by 302.7% during the 3rd quarter. Brooklyn Investment Group now owns 46,112 shares of the communications equipment provider’s stock valued at $381,000 after buying an additional 34,660 shares during the period. 7.99% of the stock is currently owned by hedge funds and other institutional investors.

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.