International Business Machines (NYSE:IBM) Stock Price Down 1.2% - Here's Why

International Business Machines Co. (NYSE:IBM - Get Free Report)'s stock price was down 1.2% on Wednesday . The company traded as low as $262.25 and last traded at $263.63. Approximately 1,131,474 shares traded hands during trading, a decline of 73% from the average daily volume of 4,209,380 shares. The stock had previously closed at $266.95.

Wall Street Analyst Weigh In

A number of analysts have recently commented on IBM shares. Bank of America lifted their price target on shares of International Business Machines from $260.00 to $270.00 and gave the stock a "buy" rating in a research note on Thursday, January 30th. UBS Group restated a "sell" rating and issued a $170.00 price target (up previously from $160.00) on shares of International Business Machines in a research report on Wednesday, April 23rd. Citigroup reiterated an "outperform" rating on shares of International Business Machines in a research report on Saturday, May 10th. Morgan Stanley cut their price objective on shares of International Business Machines from $237.00 to $233.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 24th. Finally, Oppenheimer assumed coverage on shares of International Business Machines in a report on Tuesday, February 11th. They issued an "outperform" rating and a $320.00 price target on the stock. One analyst has rated the stock with a sell rating, nine have given a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, International Business Machines currently has a consensus rating of "Hold" and an average target price of $249.06.

International Business Machines Stock Up 0.2%

The company has a current ratio of 1.04, a quick ratio of 1.00 and a debt-to-equity ratio of 1.82. The stock has a market capitalization of $240.52 billion, a P/E ratio of 40.37, a P/E/G ratio of 5.81 and a beta of 0.64. The stock's 50 day simple moving average is $245.13 and its 200 day simple moving average is $238.36.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings data on Wednesday, April 23rd. The technology company reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.18. The company had revenue of $14.54 billion during the quarter, compared to analyst estimates of $14.41 billion. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. The business's revenue for the quarter was up .5% on a year-over-year basis. During the same quarter last year, the firm posted $1.68 EPS. As a group, research analysts predict that International Business Machines Co. will post 10.78 EPS 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. Shareholders of record on Friday, May 9th will be issued a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.60%. This is a positive change from International Business Machines's previous quarterly dividend of $1.67. International Business Machines's payout ratio is 115.66%.

Insider Activity

In related news, SVP Robert David Thomas sold 26,543 shares of the stock in a transaction that occurred on Monday, March 3rd. The stock was 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 directly owns 45,007 shares of the company's stock, valued at approximately $11,387,221.07. This represents a 37.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.18% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On International Business Machines

Several hedge funds have recently added to or reduced their stakes in the business. Tallon Kerry Patrick acquired a new stake in International Business Machines in the fourth quarter valued at about $902,000. Secure Asset Management LLC increased its holdings in shares of International Business Machines by 55.1% during the fourth quarter. Secure Asset Management LLC now owns 4,209 shares of the technology company's stock valued at $925,000 after acquiring an additional 1,495 shares in the last quarter. Brighton Jones LLC increased its holdings in shares of International Business Machines by 12.4% during the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after acquiring an additional 2,323 shares in the last quarter. Encompass More Asset Management purchased a new position in shares of International Business Machines during the fourth quarter valued at approximately $235,000. Finally, CX Institutional boosted its position in shares of International Business Machines by 2.0% during the fourth quarter. CX Institutional now owns 7,125 shares of the technology company's stock valued at $1,566,000 after buying an additional 143 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.