International Business Machines (NYSE:IBM) Stock Price Down 1.1% on Analyst Downgrade

Key Points

• Shares of International Business Machines (IBM) fell 1.1% after Bank of America downgraded its price target from $320 to $310 while maintaining a buy rating.
• UBS Group and various other brokerages have differing views on IBM, with ratings ranging from "sell" to "outperform" and price targets as low as $195 and as high as $315.
• IBM recently announced a quarterly dividend of $1.68, increasing from the previous $1.67, which gives an annualized yield of 2.61%.
• The company reported a 7.7% year-over-year revenue increase to $16.98 billion and outperformed earnings estimates with $2.80 EPS.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price was down 1.1% during mid-day trading on Friday after Bank of America lowered their price target on the stock from $320.00 to $310.00. Bank of America currently has a buy rating on the stock. International Business Machines traded as low as $256.35 and last traded at $257.77. Approximately 2,608,091 shares were traded during trading, a decline of 43% from the average daily volume of 4,598,749 shares. The stock had previously closed at $260.51.

Other research analysts also recently issued research reports about the stock. Jefferies Financial Group reiterated a "hold" rating on shares of International Business Machines in a research note on Wednesday, April 23rd. The Goldman Sachs Group lifted their price target on shares of International Business Machines from $270.00 to $310.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. KGI Securities set a $242.00 price target on shares of International Business Machines and gave the stock a "hold" rating in a research note on Thursday, April 24th. Wall Street Zen downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a research note on Wednesday, May 21st. Finally, UBS Group reissued a "sell" rating and set a $195.00 price objective (up previously from $170.00) on shares of International Business Machines in a report on Wednesday, July 9th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $268.75.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in IBM. Vanguard Group Inc. increased its stake in shares of International Business Machines by 1.4% during the 1st quarter. Vanguard Group Inc. now owns 93,137,767 shares of the technology company's stock valued at $23,159,637,000 after acquiring an additional 1,298,515 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of International Business Machines by 2.1% during the 4th 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 last quarter. Capital World Investors increased its position 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 worth $2,634,577,000 after purchasing an additional 9,650,534 shares in the last quarter. Northern Trust Corp increased its position in International Business Machines by 18.6% during the 4th quarter. Northern Trust Corp now owns 10,845,993 shares of the technology company's stock worth $2,384,275,000 after purchasing an additional 1,704,209 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in International Business Machines by 6.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company's stock worth $2,147,608,000 after purchasing an additional 524,633 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Price Performance

The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87. The firm has a market cap of $244.61 billion, a price-to-earnings ratio of 42.73, a P/E/G ratio of 4.01 and a beta of 0.69. The business's 50-day moving average price is $277.69 and its two-hundred day moving average price is $256.27.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.65 by $0.15. The firm had revenue of $16.98 billion for 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 business posted $2.43 earnings per share. On average, research analysts forecast that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th were paid a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a yield of 2.55%. This is a boost from International Business Machines's previous quarterly dividend of $1.67. International Business Machines's dividend payout ratio (DPR) is presently 109.09%.

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.