Ericsson Repurchases 2M Shares for SEK 252M in June Buyback

Telefonaktiebolaget LM Ericsson repurchased 2.025 million Class B shares for SEK 252.3 million between June 1 and June 5, 2026. The buyback is part of the company’s SEK 15 billion share repurchase program announced in April 2026 and running through March 2027. Meyka rates ERIC a B+ with a 12-month price target of SEK 12.39, suggesting limited upside from the current price of $12.52 USD.

Weekly Repurchase Details

Ericsson bought back shares at an average price of SEK 124.57 per share during the five-day period. The company repurchased 500,000 shares on June 1 at SEK 122.40, 500,000 on June 2 at SEK 125.94, 500,000 on June 3 at SEK 127.29, 125,000 on June 4 at SEK 123.27, and 400,000 on June 5 at SEK 122.59. Goldman Sachs Bank Europe SE executed all transactions on Nasdaq Stockholm on behalf of Ericsson.

Treasury Stock Position Grows

Following these repurchases, Ericsson’s treasury stock holdings rose to 50.38 million Class B shares. The board intends to propose canceling most repurchased shares at the 2027 Annual General Meeting, except those needed for employee incentive programs. This approach aims to permanently reduce share count and boost earnings per share.

Capital Allocation Strategy

The SEK 15 billion buyback program runs from April 23, 2026, through March 31, 2027. Ericsson executes the program under EU market abuse regulations to ensure compliance. The company states the buyback optimizes capital structure and returns value to shareholders. With a 2.49% dividend yield and strong cash generation, the buyback complements the company’s shareholder return strategy.

Stock Performance and Valuation

ERIC trades at $12.52 USD, down 0.32% on the day but up 47.5% over the past 12 months. Meyka’s B+ grade reflects strong profitability metrics including a 24.8% return on equity and 10.8% net profit margin. Analysts hold a mixed view with 5 hold ratings and 2 sell ratings. The stock trades at 16.1x trailing earnings, near its 50-day average of $12.08.

Final Thoughts

Ericsson’s ongoing buyback reduces share count while maintaining strong cash flow. With Meyka rating the stock B+ and a 12-month target of SEK 12.39, the buyback supports shareholder value but offers limited price appreciation at current levels.

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