International Business Machines (NYSE:IBM) Rating Lowered to Hold at Erste Group Bank

Key Points

• IBM has been downgraded from a "buy" to a "hold" rating by Erste Group Bank in a recent report, reflecting a change in analyst sentiment towards the stock.
• Despite the downgrade, several brokerages have raised their price targets for the company, indicating varied opinions on its future potential, with current average price target set at $268.75.
• IBM reported $2.80 earnings per share for the latest quarter, beating expectations and showing a year-over-year revenue increase of 7.7%.

International Business Machines (NYSE:IBM - Get Free Report) was downgraded by investment analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Finviz reports.

Several other brokerages also recently issued reports on IBM. JPMorgan Chase & Co. raised their price target on International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. Bank of America cut their price target on International Business Machines from $320.00 to $310.00 and set a "buy" rating for the company in a report on Thursday, July 24th. Wedbush raised their price target on International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a report on Friday, June 20th. Jefferies Financial Group reaffirmed a "hold" rating on shares of International Business Machines in a report on Wednesday, April 23rd. Finally, Stifel Nicolaus lifted their target price on International Business Machines from $290.00 to $310.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, International Business Machines currently has an average rating of "Moderate Buy" and an average target price of $268.75.

International Business Machines Price Performance

Shares of IBM opened at $240.24 on Thursday. The stock has a market capitalization of $223.28 billion, a P/E ratio of 39.00, a P/E/G ratio of 3.62 and a beta of 0.69. International Business Machines has a twelve month low of $190.73 and a twelve month high of $296.16. The company has a 50 day moving average of $274.46 and a 200-day moving average of $258.27. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, beating the consensus estimate of $2.65 by $0.15. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The business had revenue of $16.98 billion during the quarter, compared to analysts' expectations of $16.58 billion. During the same period last year, the business earned $2.43 earnings per share. The firm's revenue was up 7.7% on a year-over-year basis. As a group, equities research analysts forecast that International Business Machines will post 10.78 EPS for the current fiscal year.

Institutional Trading of International Business Machines

Large investors have recently modified their holdings of the stock. MinichMacGregor Wealth Management LLC acquired a new stake in shares of International Business Machines during the 1st quarter worth approximately $396,000. Left Brain Wealth Management LLC grew its position in International Business Machines by 1,547.8% in the 1st quarter. Left Brain Wealth Management LLC now owns 17,664 shares of the technology company's stock valued at $4,392,000 after purchasing an additional 16,592 shares during the period. Alpha Cubed Investments LLC grew its position in International Business Machines by 47.0% in the 1st quarter. Alpha Cubed Investments LLC now owns 7,507 shares of the technology company's stock valued at $1,867,000 after purchasing an additional 2,399 shares during the period. Wedbush Securities Inc. grew its position in International Business Machines by 5.6% in the 1st quarter. Wedbush Securities Inc. now owns 62,067 shares of the technology company's stock valued at $15,434,000 after purchasing an additional 3,276 shares during the period. Finally, Nationale Nederlanden Powszechne Towarzystwo Emerytalne S.A. acquired a new stake in International Business Machines in the 1st quarter valued at $4,608,000. Institutional investors and hedge funds own 58.96% of the company's stock.

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.

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