International Business Machines (NYSE:IBM) Shares Down 2.3% - Should You Sell?

Key Points

• IBM's shares fell 2.3% to $247.33 during Friday's trading, with a significant decline in trading volume, down 47% from average levels.
• Analysts have varying ratings on the stock, with nine buy ratings and one sell rating, leading to an average rating of "Moderate Buy" and a consensus target price of $268.75.
• IBM reported a better-than-expected quarterly earnings of $2.80 EPS, exceeding analysts' estimates by 15 cents and showcasing a revenue increase of 7.7% year over year.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price traded down 2.3% during trading on Friday . The stock traded as low as $247.32 and last traded at $247.33. 2,457,937 shares traded hands during trading, a decline of 47% from the average session volume of 4,632,666 shares. The stock had previously closed at $253.15.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. 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 research note on Thursday, July 24th. Stifel Nicolaus upped their price target on International Business Machines from $290.00 to $310.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. UBS Group upped their price target on International Business Machines from $195.00 to $200.00 and gave the stock a "sell" rating in a research note on Thursday, July 24th. Citigroup reiterated an "outperform" rating on shares of International Business Machines in a research report on Saturday, May 10th. Finally, Wall Street Zen upgraded International Business Machines from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. One analyst has rated the stock with a sell rating, eight have issued a hold rating, nine have issued a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $268.75.

International Business Machines Trading Down 2.5%

The business has a fifty day moving average price of $277.37 and a 200 day moving average price of $256.88. The company has a market capitalization of $229.44 billion, a PE ratio of 40.04, a P/E/G ratio of 4.02 and a beta of 0.69. The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 EPS for the quarter, topping analysts' consensus estimates of $2.65 by $0.15. The company had revenue of $16.98 billion for the quarter, compared to the consensus estimate of $16.58 billion. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%. The company's quarterly revenue was up 7.7% compared to the same quarter last year. During the same period last year, the business posted $2.43 EPS. Analysts expect that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

Institutional Investors Weigh In On International Business Machines

Several hedge funds have recently modified their holdings of IBM. Fjarde AP Fonden Fourth Swedish National Pension Fund increased its holdings in International Business Machines by 13.0% during the 2nd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 217,281 shares of the technology company's stock worth $64,050,000 after purchasing an additional 25,000 shares during the last quarter. SYM FINANCIAL Corp increased its holdings in International Business Machines by 5.2% during the 2nd quarter. SYM FINANCIAL Corp now owns 2,625 shares of the technology company's stock worth $774,000 after purchasing an additional 130 shares during the last quarter. Facet Wealth Inc. increased its holdings in International Business Machines by 99.0% during the 2nd quarter. Facet Wealth Inc. now owns 5,846 shares of the technology company's stock worth $1,723,000 after purchasing an additional 2,909 shares during the last quarter. Penobscot Wealth Management increased its holdings in International Business Machines by 4.9% during the 2nd quarter. Penobscot Wealth Management now owns 892 shares of the technology company's stock worth $263,000 after purchasing an additional 42 shares during the last quarter. Finally, Convergence Investment Partners LLC increased its holdings in International Business Machines by 1.4% during the 2nd quarter. Convergence Investment Partners LLC now owns 28,286 shares of the technology company's stock worth $8,338,000 after purchasing an additional 388 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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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