International Business Machines (NYSE:IBM) Shares Up 2.1% - Should You Buy?

International Business Machines Co. (NYSE:IBM - Get Free Report) shares traded up 2.1% during trading on Friday . The company traded as high as $245.67 and last traded at $244.78. 806,234 shares changed hands during trading, a decline of 84% from the average session volume of 4,977,318 shares. The stock had previously closed at $239.66.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on IBM shares. Oppenheimer initiated coverage on International Business Machines in a research note on Tuesday, February 11th. They set an "outperform" rating and a $320.00 price target for the company. Erste Group Bank upgraded International Business Machines from a "hold" rating to a "strong-buy" rating in a research report on Monday, March 17th. StockNews.com cut shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Friday. BMO Capital Markets reiterated a "market perform" rating on shares of International Business Machines in a report on Wednesday, April 23rd. Finally, Jefferies Financial Group restated a "hold" rating on shares of International Business Machines in a research note on Wednesday, April 23rd. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $248.50.

International Business Machines Price 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 has a market capitalization of $227.63 billion, a PE ratio of 38.30, a P/E/G ratio of 5.81 and a beta of 0.67. The stock has a fifty day moving average price of $243.19 and a 200-day moving average price of $234.14.

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

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th will be paid a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.74%. This is an increase from International Business Machines's previous quarterly dividend of $1.67. International Business Machines's dividend payout ratio (DPR) is 114.97%.

Insider Transactions at International Business Machines

In other news, SVP Robert David Thomas sold 26,543 shares of the company's stock in a transaction dated 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 transaction, the senior vice president now owns 45,007 shares in the company, valued at $11,387,221.07. This represents a 37.10 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.18% of the company's stock.

Institutional Trading of International Business Machines

Large investors have recently bought and sold shares of the stock. JBR Co Financial Management Inc increased its position in shares of International Business Machines by 0.6% in the 4th quarter. JBR Co Financial Management Inc now owns 6,390 shares of the technology company's stock valued at $1,405,000 after acquiring an additional 40 shares during the period. Wealth Dimensions Group Ltd. increased its holdings in shares of International Business Machines by 1.0% in the fourth quarter. Wealth Dimensions Group Ltd. now owns 3,972 shares of the technology company's stock valued at $873,000 after purchasing an additional 40 shares during the period. Pallas Capital Advisors LLC raised its stake in shares of International Business Machines by 0.9% in the first quarter. Pallas Capital Advisors LLC now owns 4,805 shares of the technology company's stock worth $1,195,000 after purchasing an additional 42 shares during the last quarter. DMC Group LLC lifted its holdings in shares of International Business Machines by 1.2% during the first quarter. DMC Group LLC now owns 3,517 shares of the technology company's stock worth $875,000 after purchasing an additional 42 shares during the period. Finally, Schechter Investment Advisors LLC boosted its position in International Business Machines by 0.7% in the fourth quarter. Schechter Investment Advisors LLC now owns 6,351 shares of the technology company's stock valued at $1,396,000 after buying an additional 43 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

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.