International Business Machines (NYSE:IBM) Stock Price Down 1% - Should You Sell?

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) dropped 1% on Friday . The company traded as low as $246.60 and last traded at $245.98. Approximately 762,807 shares traded 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.

Analysts Set New Price Targets

IBM has been the topic of a number of recent analyst reports. The Goldman Sachs Group lifted their price objective on shares of International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a research note on Wednesday, July 2nd. Jefferies Financial Group restated a "hold" rating on shares of International Business Machines in a research note on Wednesday, April 23rd. Citigroup restated an "outperform" rating on shares of International Business Machines in a research note on Saturday, May 10th. UBS Group lifted their price objective on shares of International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a research note on Thursday, July 24th. Finally, Wall Street Zen upgraded shares of International Business Machines from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. 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 given a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $268.75.

International Business Machines Trading Down 2.5%

The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91. The company has a 50 day simple moving average of $275.58 and a two-hundred day simple moving average of $258.56. The company has a market cap of $219.48 billion, a PE ratio of 38.34, a PEG ratio of 3.74 and a beta of 0.69.

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 return on equity of 37.62% and a net margin of 9.11%. The company had revenue of $16.98 billion for the quarter, compared to analysts' expectations of $16.58 billion. During the same quarter in the previous year, the business posted $2.43 EPS. The business's revenue for the quarter was up 7.7% on a year-over-year basis. Sell-side analysts forecast that International Business Machines Corporation will post 10.78 EPS for the current year.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently made changes to their positions in IBM. Family CFO Inc acquired a new stake in International Business Machines in the 2nd quarter worth approximately $25,000. Christopher J. Hasenberg Inc acquired a new stake in International Business Machines in the 1st quarter worth approximately $27,000. SSA Swiss Advisors AG acquired a new stake in International Business Machines in the 1st quarter worth approximately $28,000. Dagco Inc. acquired a new stake in International Business Machines in the 1st quarter worth approximately $31,000. Finally, Silicon Valley Capital Partners lifted its holdings in International Business Machines by 322.6% in the 1st quarter. Silicon Valley Capital Partners now owns 131 shares of the technology company's stock worth $32,000 after purchasing an additional 100 shares during the last quarter. 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.