International Business Machines (NYSE:IBM) Shares Up 2% on Earnings Beat

Key Points

• IBM's stock price rose 2% following an earnings report that showed an EPS of $2.65, exceeding expectations by $0.22.
• Analysts have mixed views on IBM, with one strong buy rating, several buy and hold ratings, and an average price target of $289.08.
• Institutional investors currently own 58.96% of IBM's stock, with several hedge funds acquiring new stakes in recent quarters.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) traded up 2% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $289.17 and last traded at $287.57. 9,644,311 shares were traded during trading, an increase of 103% from the average session volume of 4,744,020 shares. The stock had previously closed at $282.05.

The technology company reported $2.65 EPS for the quarter, beating the consensus estimate of $2.43 by $0.22. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%.

Analysts Set New Price Targets

Several research analysts have commented on the company. Weiss Ratings reissued a "hold (c+)" rating on shares of International Business Machines in a research report on Wednesday, October 8th. Erste Group Bank downgraded International Business Machines from a "buy" rating to a "hold" rating in a research note on Thursday, August 14th. JPMorgan Chase & Co. raised their target price on International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research note on Thursday, July 24th. Melius Research upgraded International Business Machines to a "strong-buy" rating in a research note on Monday, July 7th. Finally, Sanford C. Bernstein initiated coverage on International Business Machines in a research note on Monday, September 15th. They issued a "market perform" rating and a $280.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $289.08.

Institutional Investors Weigh In On International Business Machines

Hedge funds have recently made changes to their positions in the business. Family CFO Inc bought a new stake in shares of International Business Machines during the second quarter valued at approximately $25,000. Christopher J. Hasenberg Inc bought a new stake in shares of International Business Machines during the first quarter valued at approximately $27,000. Winnow Wealth LLC bought a new stake in shares of International Business Machines during the second quarter valued at approximately $27,000. SSA Swiss Advisors AG bought a new stake in shares of International Business Machines during the first quarter valued at approximately $28,000. Finally, Dagco Inc. bought a new stake in shares of International Business Machines during the first quarter valued at approximately $31,000. Institutional investors own 58.96% of the company's stock.

International Business Machines Stock Performance

The company has a market cap of $267.27 billion, a P/E ratio of 46.68, a PEG ratio of 4.36 and a beta of 0.73. The stock has a fifty day moving average price of $262.97 and a two-hundred day moving average price of $262.39. The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87.

International Business Machines Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.