International Business Machines (NYSE:IBM) Shares Down 1% - What's Next?

Key Points

• International Business Machines (IBM) shares fell by 1%, closing at $245.98 with a trading volume significantly below average.
• Analysts retain a Moderate Buy consensus for IBM, with price targets ranging from $242 to $310, indicating mixed sentiments on the stock's performance.
• IBM reported a $2.80 EPS for the last quarter, surpassing expected earnings and showing a 7.7% increase in revenue year-over-year.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s stock price was down 1% on Friday . The company traded as low as $246.60 and last traded at $245.98. Approximately 762,807 shares changed hands during trading, a decline of 84% from the average daily volume of 4,674,025 shares. The stock had previously closed at $248.48.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on IBM shares. Stifel Nicolaus lifted their price target on shares of International Business Machines from $290.00 to $310.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. KGI Securities set a $242.00 target price on shares of International Business Machines and gave the stock a "hold" rating in a report on Thursday, April 24th. JPMorgan Chase & Co. increased their target price on shares of International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. BMO Capital Markets increased their price objective on International Business Machines from $260.00 to $300.00 and gave the stock a "market perform" rating in a report on Friday, July 18th. Finally, Melius Research upgraded shares of International Business Machines to a "strong-buy" rating in a research report on Monday, July 7th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have assigned a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $268.75.

International Business Machines Stock Down 2.3%

The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87. The firm has a market cap of $225.73 billion, a P/E ratio of 39.46, a PEG ratio of 3.89 and a beta of 0.69. The firm's 50-day moving average price is $276.48 and its 200 day moving average price is $257.89.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $16.98 billion during the quarter, compared to analysts' expectations of $16.58 billion. During the same period in the prior year, the company earned $2.43 earnings per share. The business's quarterly revenue was up 7.7% compared to the same quarter last year. On average, equities research analysts expect that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

Institutional Investors Weigh In On International Business Machines

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in International Business Machines by 1.4% in the first quarter. Vanguard Group Inc. now owns 93,137,767 shares of the technology company's stock worth $23,159,637,000 after buying an additional 1,298,515 shares in the last quarter. Geode Capital Management LLC increased its holdings in International Business Machines by 1.9% in the 2nd quarter. Geode Capital Management LLC now owns 21,936,235 shares of the technology company's stock worth $6,444,527,000 after acquiring an additional 400,131 shares in the last quarter. Capital World Investors boosted its stake in International Business Machines by 413.5% in the 4th quarter. Capital World Investors now owns 11,984,609 shares of the technology company's stock worth $2,634,577,000 after purchasing an additional 9,650,534 shares during the period. Northern Trust Corp grew its holdings in International Business Machines by 18.6% during the 4th quarter. Northern Trust Corp now owns 10,845,993 shares of the technology company's stock valued at $2,384,275,000 after buying an additional 1,704,209 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in International Business Machines by 6.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company's stock valued at $2,147,608,000 after purchasing an additional 524,633 shares during the period. Institutional investors 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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