International Business Machines (NYSE:IBM) Shares Up 1.6% - Should You Buy?

Key Points

• IBM shares rose 1.6% on Monday, trading as high as $223.33 after closing at $219.30 the previous day.
• Recent earnings were solid: IBM reported $1.91 EPS versus the $1.81 consensus and revenue of $15.92 billion, both ahead of estimates.
• The company also raised its quarterly dividend to $1.69 per share, and analysts currently rate the stock Moderate Buy with a consensus price target of $294.41.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares were up 1.6% on Monday . The company traded as high as $223.33 and last traded at $222.8410. Approximately 5,939,339 shares were traded during trading, a decline of 1% from the average daily volume of 5,985,284 shares. The stock had previously closed at $219.30.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Citigroup initiated coverage on shares of International Business Machines in a research note on Friday, April 10th. They issued a "buy" rating and a $285.00 target price on the stock. Erste Group Bank lowered International Business Machines from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. DZ Bank raised International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective on the stock in a research note on Friday, April 24th. Weiss Ratings lowered International Business Machines from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, May 4th. Finally, Argus set a $360.00 target price on International Business Machines in a report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $294.41.

International Business Machines Price Performance

The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The firm's 50-day moving average price is $240.49 and its two-hundred day moving average price is $274.79. The stock has a market cap of $209.45 billion, a PE ratio of 19.70, a PEG ratio of 2.27 and a beta of 0.58.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The company had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.60 earnings per share. On average, equities analysts expect that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be paid a dividend of $1.69 per share. This is an increase from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.0%. International Business Machines's dividend payout ratio (DPR) is currently 59.77%.

Insiders Place Their Bets

In related news, Director Michael Miebach bought 434 shares of the business's stock in a transaction on Wednesday, February 25th. The shares were bought at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the purchase, the director directly owned 434 shares of the company's stock, valued at approximately $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.27% of the stock is currently owned by insiders.

Institutional Trading of International Business Machines

Institutional investors have recently modified their holdings of the company. Norges Bank purchased a new stake in shares of International Business Machines during the 4th quarter valued at $2,446,429,000. Capital World Investors grew its stake in International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock worth $6,523,720,000 after buying an additional 4,976,756 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in International Business Machines by 83.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company's stock valued at $1,663,847,000 after buying an additional 2,553,552 shares in the last quarter. Corient Private Wealth LLC increased its position in International Business Machines by 359.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company's stock valued at $561,814,000 after buying an additional 1,484,026 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock valued at $28,796,390,000 after buying an additional 1,439,824 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.