Ericsson (NASDAQ:ERIC) Stock Sees Unusually High Call Option Buying

Ericsson (NASDAQ:ERIC) was the recipient of some unusual options trading activity on Thursday. Traders acquired 2,734 call options on the stock. This represents an increase of approximately 51% compared to the average daily volume of 1,807 call options.

Trending Headlines about Ericsson

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Q3 results exceeded expectations: Ericsson reported adjusted EPS of $0.18 versus the $0.14 consensus estimate and revenue of $5.94 billion versus expectations of $5.59 billion. Revenue increased 5.8% year over year, supported by strong Networks demand. Ericsson reports third quarter results 2026
• Positive Sentiment: Organic growth accelerated: Third-quarter organic sales growth reached 7%, with the Networks division up 9%. The performance suggests improving telecom-equipment demand and helped offset weakness or slower growth in other businesses. Ericsson shares gain after 7% organic sales growth
• Positive Sentiment: 6G milestone strengthens Ericsson’s technology positioning: Ericsson and Verizon completed what they described as the first pre-standard outdoor 6G field call in the 7 GHz band at a commercial site in California. The test moves 6G beyond laboratory demonstrations and could support future equipment opportunities, although commercialization is still distant. Verizon and Ericsson 6G field call
• Neutral Sentiment: Operating structure is being streamlined: Ericsson will combine several Asian market areas into a new Asia-Pacific unit and reorganize its Enterprise Wireless Solutions portfolio. Management expects better use of R&D resources and greater efficiency, but execution and transition costs could affect near-term results. Ericsson announces structural changes
• Negative Sentiment: Margins face cost pressure: Ericsson warned that AI-related demand is increasing the cost of chips and other components. The company plans price increases, but higher input costs may pressure profitability through 2027. Quarterly profit also declined because the prior-year period benefited from a large divestment gain. Ericsson plans price hikes as equipment costs rise

Hedge Funds Weigh In On Ericsson

A number of hedge funds have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio bought a new position in Ericsson in the 2nd quarter valued at about $15,812,000. Bank of New York Mellon Corp boosted its holdings in shares of Ericsson by 8.5% in the 1st quarter. Bank of New York Mellon Corp now owns 160,581 shares of the communications equipment provider’s stock valued at $1,810,000 after purchasing an additional 12,534 shares in the last quarter. Finally, Advisors Preferred LLC bought a new stake in shares of Ericsson during the 1st quarter worth $493,000. Institutional investors own 7.99% of the company’s stock.

Ericsson Stock Up 9.2%

Shares of NASDAQ ERIC traded up $0.88 during trading hours on Thursday, hitting $10.46. The company had a trading volume of 25,541,209 shares, compared to its average volume of 10,512,660. Ericsson has a 1-year low of $9.03 and a 1-year high of $13.77. The company has a quick ratio of 0.89, a current ratio of 1.12 and a debt-to-equity ratio of 0.21. The firm’s 50 day moving average is $9.90 and its 200-day moving average is $10.95. The stock has a market capitalization of $35.27 billion, a P/E ratio of 13.37, a price-to-earnings-growth ratio of 1.80 and a beta of 0.96.

Ericsson (NASDAQ:ERIC) last announced its quarterly earnings results on Thursday, October 15th. The communications equipment provider reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.04. Ericsson had a return on equity of 20.63% and a net margin of 10.72%. The firm had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.59 billion. During the same quarter in the previous year, the business earned $1.37 earnings per share. The business’s revenue was up 5.8% compared to the same quarter last year. On average, analysts expect that Ericsson will post 0.60 earnings per share for the current fiscal year.

Ericsson Announces Dividend

The firm also recently declared a dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 29th were given a dividend of $0.1579 per share. The ex-dividend date of this dividend was Tuesday, September 29th. Ericsson’s dividend payout ratio (DPR) is currently 25.64%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. JPMorgan Chase & Co. lowered their target price on shares of Ericsson from $11.40 to $10.20 and set a “neutral” rating for the company in a report on Thursday, October 8th. Weiss Ratings cut shares of Ericsson from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, August 28th. Danske raised Ericsson from a “hold” rating to a “buy” rating in a research note on Wednesday, July 15th. Citigroup restated a “neutral” rating on shares of Ericsson in a research report on Wednesday, July 15th. Finally, Morgan Stanley cut Ericsson from an “equal weight” rating to an “underweight” rating and decreased their price objective for the stock from $11.00 to $9.00 in a research note on Tuesday, September 22nd. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $9.60.

Ericsson Company Profile

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish telecommunications and technology company that provides communications infrastructure, software, and related services to telecommunications operators and enterprises worldwide. The company was founded in 1876 by Lars Magnus Ericsson and is headquartered in Stockholm, Sweden.

Ericsson’s offerings include mobile network equipment and services for 4G and 5G networks, radio access systems, core networks, transport solutions, and network management software.