International Business Machines (NYSE:IBM) Trading 2.6% Higher on Earnings Beat

International Business Machines Co. (NYSE:IBM - Get Free Report)'s stock price shot up 2.6% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $249.34 and last traded at $247.12. 1,577,629 shares traded hands during trading, a decline of 63% from the average session volume of 4,229,896 shares. The stock had previously closed at $240.90.

The technology company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.42 by $0.18. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. The business had revenue of $14.54 billion for the quarter, compared to analyst estimates of $14.41 billion.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 10th. Stockholders of record on Monday, February 10th were given a $1.67 dividend. This represents a $6.68 annualized dividend and a dividend yield of 2.87%. The ex-dividend date was Monday, February 10th. International Business Machines's payout ratio is currently 104.21%.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. UBS Group reissued a "sell" rating and set a $170.00 target price (up from $160.00) on shares of International Business Machines in a research report on Wednesday. Wedbush reissued an "outperform" rating and set a $300.00 price target on shares of International Business Machines in a research report on Thursday. Erste Group Bank upgraded International Business Machines from a "hold" rating to a "strong-buy" rating in a research note on Monday, March 17th. Bank of America lifted their price target on International Business Machines from $260.00 to $270.00 and gave the company a "buy" rating in a report on Thursday, January 30th. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of International Business Machines in a research report on Wednesday, February 5th. Two analysts have rated the stock with a sell rating, eight have given a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $242.41.

Insider Buying and Selling at International Business Machines

In related news, SVP Robert David Thomas sold 26,543 shares of the business's stock in a transaction that occurred on Monday, March 3rd. The stock was sold at an average price of $253.01, for a total value of $6,715,644.43. Following the completion of the sale, the senior vice president now directly owns 45,007 shares in the company, valued at approximately $11,387,221.07. The trade was a 37.10 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.18% of the company's stock.

Institutional Trading of International Business Machines

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in International Business Machines by 1.7% during the fourth quarter. Vanguard Group Inc. now owns 91,839,252 shares of the technology company's stock worth $20,189,023,000 after acquiring an additional 1,539,888 shares during the period. Geode Capital Management LLC lifted its holdings in shares of International Business Machines by 2.1% during the fourth quarter. Geode Capital Management LLC now owns 20,909,646 shares of the technology company's stock valued at $4,589,145,000 after acquiring an additional 427,499 shares during the period. Capital World Investors lifted its holdings in International Business Machines by 413.5% during the 4th quarter. Capital World Investors now owns 11,984,609 shares of the technology company's stock valued at $2,634,577,000 after purchasing an additional 9,650,534 shares during the last quarter. Northern Trust Corp boosted its holdings in shares of International Business Machines by 18.6% in the 4th quarter. Northern Trust Corp now owns 10,845,993 shares of the technology company's stock worth $2,384,275,000 after acquiring an additional 1,704,209 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of International Business Machines by 9.8% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,112,092 shares of the technology company's stock worth $1,783,281,000 after purchasing an additional 722,582 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Stock Up 1.4 %

The firm's 50-day simple moving average is $245.34 and its two-hundred day simple moving average is $233.91. The stock has a market cap of $215.59 billion, a price-to-earnings ratio of 36.27, a PEG ratio of 5.81 and a beta of 0.67. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.00 and a current ratio of 1.04.

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.