International Business Machines (NYSE:IBM) Trading Up 1.2% - Still a Buy?

Shares of International Business Machines Co. (NYSE:IBM - Get Free Report) were up 1.2% during trading on Tuesday . The stock traded as high as $262.15 and last traded at $261.85. Approximately 1,001,082 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 4,202,524 shares. The stock had previously closed at $258.63.

Analyst Upgrades and Downgrades

IBM has been the topic of several recent research reports. Bank of America increased their target price on shares of International Business Machines from $260.00 to $270.00 and gave the stock a "buy" rating in a report on Thursday, January 30th. The Goldman Sachs Group reiterated a "buy" rating on shares of International Business Machines in a report on Wednesday, February 5th. Jefferies Financial Group reaffirmed a "hold" rating on shares of International Business Machines in a research report on Wednesday, April 23rd. Wedbush reaffirmed an "outperform" rating and set a $300.00 target price on shares of International Business Machines in a research report on Wednesday, May 7th. Finally, JPMorgan Chase & Co. raised their price target on shares of International Business Machines from $233.00 to $244.00 and gave the company a "neutral" rating in a report on Thursday, January 30th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, International Business Machines presently has a consensus rating of "Hold" and an average price target of $249.06.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.00 and a current ratio of 1.04. The firm's 50 day simple moving average is $245.65 and its 200 day simple moving average is $239.02. The firm has a market capitalization of $242.91 billion, a price-to-earnings ratio of 40.80, a PEG ratio of 5.81 and a beta of 0.64.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, April 23rd. The technology company reported $1.60 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $14.54 billion during the quarter, compared to analysts' expectations of $14.41 billion. During the same period in the previous year, the business posted $1.68 EPS. The business's revenue was up .5% compared to the same quarter last year. Sell-side analysts forecast that International Business Machines Co. will post 10.78 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 10th. Investors of record on Friday, May 9th will be paid a $1.68 dividend. This represents a $6.72 annualized dividend and a dividend yield of 2.57%. This is a positive change from International Business Machines's previous quarterly dividend of $1.67. International Business Machines's payout ratio is currently 115.66%.

Insiders Place Their Bets

In other news, SVP Robert David Thomas sold 26,543 shares of the company's stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the completion of the sale, the senior vice president now owns 45,007 shares of the company's stock, valued at $11,387,221.07. This represents a 37.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On International Business Machines

Large investors have recently modified their holdings of the business. Intrua Financial LLC grew its holdings in shares of International Business Machines by 4.7% in the first quarter. Intrua Financial LLC now owns 3,088 shares of the technology company's stock valued at $768,000 after purchasing an additional 138 shares during the period. Jacobi Capital Management LLC grew its holdings in shares of International Business Machines by 1.2% in the first quarter. Jacobi Capital Management LLC now owns 27,609 shares of the technology company's stock valued at $6,865,000 after purchasing an additional 323 shares during the period. WBI Investments LLC grew its holdings in shares of International Business Machines by 612.2% in the first quarter. WBI Investments LLC now owns 10,170 shares of the technology company's stock valued at $2,529,000 after purchasing an additional 8,742 shares during the period. Westbourne Investments Inc. grew its holdings in shares of International Business Machines by 8.0% in the first quarter. Westbourne Investments Inc. now owns 8,103 shares of the technology company's stock valued at $2,015,000 after purchasing an additional 600 shares during the period. Finally, Indiana Trust & Investment Management Co grew its holdings in shares of International Business Machines by 3.9% in the first quarter. Indiana Trust & Investment Management Co now owns 3,160 shares of the technology company's stock valued at $786,000 after purchasing an additional 120 shares during the period. Hedge funds and other 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.