International Business Machines (NYSE:IBM) Trading Down 1% - Time to Sell?

Key Points

• IBM's stock price fell 1% on Monday, trading as low as $239.01, with a significant drop in daily trading volume, now down 61% from average levels.
• Several analysts have raised their price targets for IBM, with the average target price now at $268.75, while the stock holds a consensus rating of "Moderate Buy."
• IBM reported earnings of $2.80 EPS for the last quarter, exceeding analysts' expectations, and showing a year-over-year revenue increase of 7.7%.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s stock price was down 1% on Monday . The stock traded as low as $239.01 and last traded at $239.81. Approximately 1,821,936 shares traded hands during trading, a decline of 61% from the average daily volume of 4,692,745 shares. The stock had previously closed at $242.27.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Royal Bank Of Canada lifted their price objective on International Business Machines from $285.00 to $315.00 and gave the stock an "outperform" rating in a report on Thursday, July 17th. The Goldman Sachs Group boosted their price objective on International Business Machines from $270.00 to $310.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Citigroup reissued an "outperform" rating on shares of International Business Machines in a report on Saturday, May 10th. Bank of America dropped their target price on International Business Machines from $320.00 to $310.00 and set a "buy" rating for the company in a research report on Thursday, July 24th. Finally, Wedbush boosted their price objective on International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a research report on Friday, June 20th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have given a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat, International Business Machines currently has an average rating of "Moderate Buy" and an average target price of $268.75.

International Business Machines Trading Down 2.5%

The company has a market cap of $219.48 billion, a PE ratio of 38.34, a P/E/G ratio of 3.74 and a beta of 0.69. The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 2.00. The company has a fifty day simple moving average of $276.14 and a two-hundred day simple moving average of $258.48.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, topping analysts' consensus estimates of $2.65 by $0.15. The company had revenue of $16.98 billion during the quarter, compared to analysts' expectations of $16.58 billion. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%. The firm's revenue for the quarter was up 7.7% on a year-over-year basis. During the same period last year, the firm earned $2.43 EPS. Analysts anticipate that International Business Machines Corporation will post 10.78 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. Lifestyle Asset Management Inc. increased its holdings in International Business Machines by 1.7% in the second quarter. Lifestyle Asset Management Inc. now owns 2,144 shares of the technology company's stock valued at $632,000 after buying an additional 36 shares during the last quarter. Whelan Financial grew its holdings in International Business Machines by 2.4% in the 2nd quarter. Whelan Financial now owns 1,525 shares of the technology company's stock worth $450,000 after buying an additional 36 shares in the last quarter. Ignite Planners LLC grew its holdings in International Business Machines by 0.9% in the 2nd quarter. Ignite Planners LLC now owns 3,964 shares of the technology company's stock worth $1,133,000 after buying an additional 36 shares in the last quarter. Blue Edge Capital LLC grew its holdings in International Business Machines by 0.6% in the 1st quarter. Blue Edge Capital LLC now owns 6,776 shares of the technology company's stock worth $1,685,000 after buying an additional 39 shares in the last quarter. Finally, Johnson Bixby & Associates LLC lifted its position in shares of International Business Machines by 3.3% during the 2nd quarter. Johnson Bixby & Associates LLC now owns 1,208 shares of the technology company's stock valued at $356,000 after acquiring an additional 39 shares during the last quarter. Institutional investors and hedge funds 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.

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