International Business Machines (NYSE:IBM) Trading Down 0.8% - Should You Sell?

International Business Machines Co. (NYSE:IBM - Get Free Report)'s share price was down 0.8% during mid-day trading on Wednesday . The stock traded as low as $256.22 and last traded at $256.61. Approximately 804,909 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 4,201,274 shares. The stock had previously closed at $258.59.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. KGI Securities set a $242.00 price target on shares of International Business Machines and gave the stock a "hold" rating in a research note on Thursday, April 24th. StockNews.com upgraded shares of International Business Machines from a "hold" rating to a "buy" rating in a research note on Tuesday, May 13th. Citigroup reiterated an "outperform" rating on shares of International Business Machines in a research note on Saturday, May 10th. UBS Group restated a "sell" rating and set a $170.00 target price (up from $160.00) on shares of International Business Machines in a research report on Wednesday, April 23rd. Finally, Oppenheimer assumed coverage on shares of International Business Machines in a research report on Tuesday, February 11th. They set an "outperform" rating and a $320.00 target price for the company. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, International Business Machines presently has an average rating of "Moderate Buy" and a consensus target price of $249.06.

International Business Machines Trading Up 0.0%

The stock's 50-day simple moving average is $243.74 and its two-hundred day simple moving average is $236.48. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.04 and a quick ratio of 1.00. The firm has a market capitalization of $247.87 billion, a P/E ratio of 41.61, a price-to-earnings-growth ratio of 5.81 and a beta of 0.64.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, April 23rd. The technology company reported $1.60 EPS for the quarter, topping the consensus estimate of $1.42 by $0.18. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. The firm had revenue of $14.54 billion for the quarter, compared to the consensus estimate of $14.41 billion. During the same quarter in the previous year, the firm earned $1.68 earnings per share. The company's quarterly revenue was up .5% compared to the same quarter last year. Equities research analysts expect that International Business Machines Co. will post 10.78 EPS for the current year.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Friday, May 9th will be issued a $1.68 dividend. This represents a $6.72 annualized dividend and a dividend yield of 2.52%. This is an increase from International Business Machines's previous quarterly dividend of $1.67. International Business Machines's payout ratio is 115.66%.

Insider Transactions at International Business Machines

In related news, SVP Robert David Thomas sold 26,543 shares of the company's stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the sale, the senior vice president now owns 45,007 shares of the company's stock, valued at $11,387,221.07. This represents a 37.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.18% of the company's stock.

Institutional Investors Weigh In On International Business Machines

A number of hedge funds have recently bought and sold shares of IBM. Capital World Investors raised its stake in International Business Machines by 413.5% during the fourth quarter. Capital World Investors now owns 11,984,609 shares of the technology company's stock valued at $2,634,577,000 after purchasing an additional 9,650,534 shares in the last quarter. Norges Bank bought a new position in International Business Machines during the fourth quarter valued at $1,236,176,000. GAMMA Investing LLC increased its position in International Business Machines by 29,564.2% during the first quarter. GAMMA Investing LLC now owns 4,399,790 shares of the technology company's stock valued at $10,940,520,000 after acquiring an additional 4,384,958 shares during the last quarter. GQG Partners LLC bought a new position in International Business Machines during the first quarter valued at $1,040,057,000. Finally, Nuveen LLC bought a new position in International Business Machines during the first quarter valued at $960,386,000. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines Company Profile

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.