International Business Machines (NYSE:IBM) Shares Down 8.6% Following Analyst Downgrade

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price dropped 8.6% during mid-day trading on Thursday 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 $252.75 and last traded at $257.72. Approximately 11,766,260 shares were traded during mid-day trading, an increase of 160% from the average daily volume of 4,523,468 shares. The stock had previously closed at $282.01.

Other equities research analysts have also issued research reports about the company. Jefferies Financial Group restated a "hold" rating on shares of International Business Machines in a research note on Wednesday, April 23rd. KGI Securities set a $242.00 price target on shares of International Business Machines and gave the stock a "hold" rating in a research report on Thursday, April 24th. Wall Street Zen lowered shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Wednesday, May 21st. Citigroup reissued an "outperform" rating on shares of International Business Machines in a report on Saturday, May 10th. Finally, BMO Capital Markets lifted their price target on International Business Machines from $260.00 to $300.00 and gave the stock a "market perform" rating in a research note on Friday, July 18th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $268.75.

Institutional Investors Weigh In On International Business Machines

Several institutional investors have recently bought and sold shares of IBM. Lifestyle Asset Management Inc. increased its stake in International Business Machines by 1.7% in the 2nd quarter. Lifestyle Asset Management Inc. now owns 2,144 shares of the technology company's stock worth $632,000 after purchasing an additional 36 shares in the last quarter. Whelan Financial boosted its position in International Business Machines by 2.4% during the second quarter. Whelan Financial now owns 1,525 shares of the technology company's stock worth $450,000 after purchasing an additional 36 shares during the period. Ignite Planners LLC boosted its holdings in International Business Machines by 0.9% during the second quarter. Ignite Planners LLC now owns 3,964 shares of the technology company's stock valued at $1,133,000 after acquiring an additional 36 shares during the period. Blue Edge Capital LLC boosted its stake in International Business Machines by 0.6% during the 1st quarter. Blue Edge Capital LLC now owns 6,776 shares of the technology company's stock valued at $1,685,000 after purchasing an additional 39 shares during the period. Finally, Johnson Bixby & Associates LLC boosted its holdings in International Business Machines by 3.3% in the 2nd quarter. Johnson Bixby & Associates LLC now owns 1,208 shares of the technology company's stock valued at $356,000 after purchasing an additional 39 shares during the period. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Stock Performance

The stock has a market capitalization of $241.36 billion, a P/E ratio of 42.16, a PEG ratio of 5.52 and a beta of 0.69. The company has a quick ratio of 0.97, a current ratio of 0.91 and a debt-to-equity ratio of 2.00. The firm has a 50-day moving average of $277.83 and a 200 day moving average of $255.57.

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

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th were given a dividend of $1.68 per share. This is a boost from International Business Machines's previous quarterly dividend of $1.67. This represents a $6.72 annualized dividend and a dividend yield of 2.59%. International Business Machines's payout ratio 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.