International Business Machines (NYSE:IBM) Trading Up 1.1% - Here's What Happened

Key Points

• Shares of International Business Machines (IBM) increased by 1.1%, trading at $262.60 with a notable decline in trading volume of 69% compared to its average.
• Several analysts have adjusted their price targets for IBM, with ratings ranging from a "sell" to "strong buy", and an average target price of $268.75.
• IBM announced a quarterly dividend increase to $1.68, representing an annualized dividend of $6.72 and a dividend yield of 2.56% despite a high payout ratio of 109.09%.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) were up 1.1% on Monday . The stock traded as high as $263.11 and last traded at $262.60. Approximately 1,452,723 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 4,614,073 shares. The stock had previously closed at $259.72.

Analyst Ratings Changes

Several research analysts recently weighed in on IBM shares. Bank of America decreased their price objective on shares of International Business Machines from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Thursday. The Goldman Sachs Group upped their price objective on shares of International Business Machines from $270.00 to $310.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. JPMorgan Chase & Co. upped their price objective on shares of International Business Machines from $244.00 to $290.00 and gave the stock a "neutral" rating in a research report on Thursday. Stifel Nicolaus upped their price objective on shares of International Business Machines from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Finally, KGI Securities set a $242.00 target price on International Business Machines and gave the stock a "hold" rating in a research note on Thursday, April 24th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, nine have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $268.75.

International Business Machines Trading Up 1.2%

The company has a fifty day simple moving average of $277.69 and a two-hundred day simple moving average of $256.27. 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 market cap of $244.35 billion, a PE ratio of 42.65, a P/E/G ratio of 4.01 and a beta of 0.69.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $16.58 billion. During the same quarter in the prior year, the business posted $2.43 EPS. The business's revenue for the quarter was up 7.7% on a year-over-year basis. Analysts anticipate that International Business Machines Corporation will post 10.78 EPS for the current 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 is an increase from International Business Machines's previous quarterly dividend of $1.67. This represents a $6.72 annualized dividend and a dividend yield of 2.56%. International Business Machines's dividend payout ratio (DPR) is 109.09%.

Institutional Trading of International Business Machines

Several hedge funds have recently modified their holdings of IBM. Lifestyle Asset Management Inc. increased its position in International Business Machines by 1.7% during the second quarter. Lifestyle Asset Management Inc. now owns 2,144 shares of the technology company's stock worth $632,000 after buying an additional 36 shares in the last quarter. Whelan Financial lifted its stake in shares of 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 in the last quarter. Ignite Planners LLC lifted its stake in shares of International Business Machines by 0.9% during the second quarter. Ignite Planners LLC now owns 3,964 shares of the technology company's stock worth $1,133,000 after purchasing an additional 36 shares in the last quarter. Blue Edge Capital LLC lifted its stake in shares of International Business Machines by 0.6% in the first quarter. Blue Edge Capital LLC now owns 6,776 shares of the technology company's stock worth $1,685,000 after acquiring an additional 39 shares in the last quarter. Finally, Johnson Bixby & Associates LLC increased its holdings in 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 worth $356,000 after purchasing an additional 39 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.