International Business Machines (NYSE:IBM) Stock Price Down 1.1% - Should You Sell?

Key Points

• International Business Machines (NYSE:IBM) shares fell by 1.1% during trading, reaching a price of $233.76 after a 39% decline in trading volume compared to its average.
• Analysts have mixed opinions on IBM, with one sell rating, eight holds, nine buys, and two strong buys, and a consensus target price of $268.75.
• Recent quarterly earnings showed IBM reported $2.80 EPS, surpassing estimates, and revenue grew by 7.7% compared to the previous year.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price was down 1.1% during mid-day trading on Tuesday . The company traded as low as $233.44 and last traded at $233.76. Approximately 2,875,735 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 4,734,219 shares. The stock had previously closed at $236.30.

Analyst Ratings Changes

Several equities research analysts have weighed in on IBM shares. JPMorgan Chase & Co. raised their price objective on shares of International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Royal Bank Of Canada boosted their price objective on shares of International Business Machines from $285.00 to $315.00 and gave the stock an "outperform" rating in a research report on Thursday, July 17th. Stifel Nicolaus increased their price objective on International Business Machines from $290.00 to $310.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. Wedbush boosted their target price on International Business Machines from $300.00 to $325.00 and gave the stock an "outperform" rating in a research report on Friday, June 20th. Finally, Citigroup reiterated an "outperform" rating on shares of International Business Machines in a report on Saturday, May 10th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $268.75.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91. The company has a 50 day moving average price of $273.29 and a 200 day moving average price of $258.46. The company has a market capitalization of $222.82 billion, a price-to-earnings ratio of 38.92, a P/E/G ratio of 3.65 and a beta of 0.69.

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 for the quarter, beating the consensus estimate of $2.65 by $0.15. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%. The business had revenue of $16.98 billion during the quarter, compared to analyst estimates of $16.58 billion. During the same period in the prior year, the company earned $2.43 earnings per share. International Business Machines's revenue was up 7.7% compared to the same quarter last year. Equities research analysts predict that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its position in shares of International Business Machines by 12.4% in the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock worth $4,619,000 after purchasing an additional 2,323 shares during the period. MSH Capital Advisors LLC bought a new position in shares of International Business Machines during the 4th quarter worth $470,000. Gratus Wealth Advisors LLC boosted its stake in shares of International Business Machines by 72.6% during the fourth quarter. Gratus Wealth Advisors LLC now owns 5,762 shares of the technology company's stock valued at $1,267,000 after purchasing an additional 2,423 shares in the last quarter. First Commonwealth Financial Corp PA purchased a new stake in shares of International Business Machines during the 4th quarter worth $290,000. Finally, GKV Capital Management Co. Inc. purchased a new position in shares of International Business Machines in the 4th quarter worth approximately $154,000. 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.