International Business Machines (NYSE:IBM) Downgraded to "Hold" Rating by Erste Group Bank

Key Points

• Erste Group Bank downgraded International Business Machines (IBM) from a "Buy" to a "Hold" in a research note issued Wednesday.
• Despite the downgrade, multiple analysts raised price targets and the consensus remains a Moderate Buy with an average price target of $330.07, while individual ratings still range from Strong Buy to Sell.
• IBM reported a quarterly earnings beat (EPS $4.52 vs. $4.33 est.) with revenue up 12.2% year-over-year, and director David N. Farr disclosed a purchase of 1,000 shares, indicating insider confidence.

International Business Machines (NYSE:IBM - Get Free Report) was downgraded by equities research analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a research report issued on Wednesday.

Several other equities analysts also recently commented on the company. Evercore upped their price objective on International Business Machines from $330.00 to $345.00 and gave the company an "outperform" rating in a research report on Thursday, January 29th. Stifel Nicolaus lifted their target price on International Business Machines from $325.00 to $340.00 and gave the company a "buy" rating in a research note on Thursday, January 29th. Jefferies Financial Group boosted their target price on International Business Machines from $360.00 to $370.00 and gave the stock a "buy" rating in a research note on Thursday, January 29th. Oppenheimer set a $380.00 price objective on shares of International Business Machines and gave the stock an "outperform" rating in a research note on Thursday, January 29th. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $350.00 price objective on shares of International Business Machines in a research note on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $330.07.

International Business Machines Stock Performance

Shares of NYSE:IBM traded up $0.46 during trading on Wednesday, hitting $258.77. The company's stock had a trading volume of 455,600 shares, compared to its average volume of 5,252,200. International Business Machines has a 12 month low of $214.50 and a 12 month high of $324.90. The company has a 50-day moving average of $297.26 and a 200-day moving average of $284.32. The company has a debt-to-equity ratio of 1.67, a current ratio of 0.96 and a quick ratio of 0.92. The firm has a market cap of $241.88 billion, a price-to-earnings ratio of 23.24, a P/E/G ratio of 2.63 and a beta of 0.69.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.33 by $0.19. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The business had revenue of $19.69 billion during the quarter, compared to analyst estimates of $19.23 billion. During the same period last year, the firm posted $3.92 EPS. The company's revenue was up 12.2% on a year-over-year basis. On average, sell-side analysts expect that International Business Machines will post 10.78 earnings per share for the current year.

Insider Buying and Selling at International Business Machines

In related news, Director David N. Farr purchased 1,000 shares of International Business Machines stock in a transaction dated Friday, January 30th. The stock was bought at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the transaction, the director owned 9,258 shares in the company, valued at approximately $2,814,432. The trade was a 12.11% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.18% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Institutional investors have recently added to or reduced their stakes in the business. Family CFO Inc acquired a new stake in International Business Machines during the fourth quarter worth about $25,000. Basepoint Wealth LLC bought a new stake in International Business Machines during the 4th quarter valued at $25,000. Winnow Wealth LLC acquired a new position in International Business Machines during the 2nd quarter worth $27,000. Mountain Hill Investment Partners Corp. acquired a new position in shares of International Business Machines during the third quarter valued at $28,000. Finally, Joseph Group Capital Management bought a new position in International Business Machines in the 4th quarter valued at about $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.