International Business Machines (NYSE:IBM) Trading Down 0.8% – Here’s Why

International Business Machines Co. (NYSE:IBM) fell 0.8% on Monday . The company traded as low as $221.42 and last traded at $221.52. 701,049 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 4,242,197 shares. The stock had previously closed at $223.36.

Analysts Set New Price Targets

A number of analysts recently commented on the company. UBS Group increased their price target on International Business Machines from $130.00 to $145.00 and gave the company a “sell” rating in a research report on Wednesday, September 4th. BMO Capital Markets lifted their target price on International Business Machines from $235.00 to $260.00 and gave the stock a “market perform” rating in a research note on Thursday, October 24th. The Goldman Sachs Group increased their price target on shares of International Business Machines from $220.00 to $250.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Bank of America increased their target price on shares of International Business Machines from $209.00 to $250.00 and gave the company a “buy” rating in a research report on Wednesday, October 9th. Finally, Evercore ISI lifted their price target on shares of International Business Machines from $215.00 to $240.00 and gave the stock an “outperform” rating in a report on Wednesday, September 11th. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, International Business Machines currently has an average rating of “Hold” and a consensus target price of $208.94.

International Business Machines Stock Performance

The company’s fifty day simple moving average is $222.05 and its 200 day simple moving average is $203.82. The stock has a market capitalization of $205.43 billion, a P/E ratio of 32.34, a P/E/G ratio of 5.17 and a beta of 0.73. The company has a current ratio of 1.06, a quick ratio of 1.01 and a debt-to-equity ratio of 2.16.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, October 23rd. The technology company reported $2.30 EPS for the quarter, topping the consensus estimate of $2.27 by $0.03. The business had revenue of $14.97 billion during the quarter, compared to analysts’ expectations of $15.08 billion. International Business Machines had a return on equity of 40.52% and a net margin of 10.22%. The firm’s revenue was up 1.5% on a year-over-year basis. During the same period in the previous year, the business earned $2.20 earnings per share. As a group, sell-side analysts forecast that International Business Machines Co. will post 10.12 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 10th. Shareholders of record on Tuesday, November 12th were paid a $1.67 dividend. The ex-dividend date of this dividend was Tuesday, November 12th. This represents a $6.68 dividend on an annualized basis and a yield of 3.01%. International Business Machines’s dividend payout ratio is presently 97.23%.

Insider Buying and Selling

In other news, SVP Nickle Jaclyn Lamoreaux sold 3,600 shares of the firm’s stock in a transaction dated Friday, November 8th. The stock was sold at an average price of $215.20, for a total transaction of $774,720.00. Following the transaction, the senior vice president now directly owns 25,390 shares of the company’s stock, valued at approximately $5,463,928. This trade represents a 12.42 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.07% of the stock is owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Principal Financial Group Inc. increased its holdings in International Business Machines by 4.5% during the 3rd quarter. Principal Financial Group Inc. now owns 1,094,106 shares of the technology company’s stock valued at $241,885,000 after purchasing an additional 46,951 shares during the period. Lord Abbett & CO. LLC bought a new stake in shares of International Business Machines in the 3rd quarter worth approximately $24,761,000. Brass Tax Wealth Management Inc. bought a new position in shares of International Business Machines during the third quarter valued at approximately $249,000. 1ST Source Bank lifted its stake in International Business Machines by 0.6% in the third quarter. 1ST Source Bank now owns 31,244 shares of the technology company’s stock worth $6,907,000 after acquiring an additional 187 shares during the period. Finally, Alternative Investment Advisors LLC. boosted its holdings in International Business Machines by 3.0% in the third quarter. Alternative Investment Advisors LLC. now owns 10,660 shares of the technology company’s stock valued at $2,357,000 after acquiring an additional 314 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.