International Business Machines (NYSE:IBM) Shares Down 0.8% - Here's Why

Shares of International Business Machines Co. (NYSE:IBM - Get Free Report) were down 0.8% during trading on Wednesday . The company traded as low as $256.22 and last traded at $256.61. Approximately 804,909 shares traded 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.

Analyst Ratings Changes

A number of research analysts recently commented on IBM shares. UBS Group reaffirmed a "sell" rating and issued a $170.00 price target (up previously from $160.00) on shares of International Business Machines in a research note on Wednesday, April 23rd. Bank of America lifted their target price on International Business Machines from $260.00 to $270.00 and gave the company a "buy" rating in a research report on Thursday, January 30th. The Goldman Sachs Group reiterated a "buy" rating on shares of International Business Machines in a research report on Wednesday, February 5th. StockNews.com upgraded International Business Machines from a "hold" rating to a "buy" rating in a research report on Tuesday. Finally, Erste Group Bank upgraded International Business Machines from a "hold" rating to a "strong-buy" rating in a research report on Monday, March 17th. One 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. According to data from MarketBeat.com, International Business Machines presently has a consensus rating of "Moderate Buy" and a consensus target price of $248.50.

International Business Machines Stock Performance

The stock has a 50 day moving average of $243.26 and a 200 day moving average of $235.35. The company has a quick ratio of 1.00, a current ratio of 1.04 and a debt-to-equity ratio of 1.82. The company has a market capitalization of $238.87 billion, a price-to-earnings ratio of 40.10, a price-to-earnings-growth ratio of 5.81 and a beta of 0.64.

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

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th will be paid a $1.68 dividend. This is a positive change from International Business Machines's previous quarterly dividend of $1.67. This represents a $6.72 annualized dividend and a yield of 2.61%. International Business Machines's payout ratio is 115.66%.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert David Thomas sold 26,543 shares of the company's stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the transaction, the senior vice president now directly 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 sale 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.

Hedge Funds Weigh In On International Business Machines

Institutional investors have recently modified their holdings of the company. Compass Financial Services Inc purchased a new stake in International Business Machines in the 4th quarter valued at $26,000. Christopher J. Hasenberg Inc purchased a new stake in International Business Machines in the 1st quarter valued at $27,000. SSA Swiss Advisors AG purchased a new stake in International Business Machines in the 1st quarter valued at $28,000. Vision Financial Markets LLC purchased a new stake in International Business Machines in the 4th quarter valued at $31,000. Finally, Dagco Inc. purchased a new stake in International Business Machines in the 1st quarter valued at $31,000. 58.96% of the stock is owned by institutional investors and hedge funds.

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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