International Business Machines (NYSE:IBM) Shares Down 1.9% - Here's Why

Key Points

• IBM shares fell 1.9% to about $252.98 in mid-day trading, with volume below the average session level.
• Analyst sentiment remains favorable overall, with a consensus rating of “Moderate Buy” and an average price target of $266.12; recent targets range from $174 to $297.
• IBM exceeded quarterly earnings and revenue expectations, reporting $2.95 in EPS and $17.10 billion in revenue, while declaring a quarterly dividend of $1.69 per share, yielding approximately 2.7% annually.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price was down 1.9% during mid-day trading on Monday. The company traded as low as $252.36 and last traded at $252.9840. Approximately 5,434,523 shares were traded during trading, a decline of 26% from the average session volume of 7,388,198 shares. The stock had previously closed at $257.81.

Analysts Set New Price Targets

IBM has been the topic of a number of recent analyst reports. Yorkville Ives started coverage on International Business Machines in a report on Monday, October 5th. They set an "outperform" rating and a $275.00 price target on the stock. HSBC lowered their price target on International Business Machines from $175.00 to $174.00 in a report on Friday, July 24th. UBS Group raised their target price on shares of International Business Machines from $236.00 to $243.00 and gave the company a "neutral" rating in a research note on Thursday, October 22nd. Citic Securities boosted their price target on shares of International Business Machines from $294.00 to $297.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Finally, Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a report on Saturday, October 24th. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, International Business Machines currently has an average rating of "Moderate Buy" and a consensus price target of $266.12.

International Business Machines Stock Down 1.9%

The stock has a market capitalization of $239.10 billion, a price-to-earnings ratio of 21.57, a price-to-earnings-growth ratio of 2.54 and a beta of 0.78. The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 1.57. The firm has a 50-day moving average of $235.17 and a two-hundred day moving average of $249.93.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.85 by $0.10. The company had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The firm's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.65 EPS. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 12.41 earnings per share for the current year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be issued a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Tuesday, November 10th. International Business Machines's dividend payout ratio (DPR) is currently 57.63%.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.27% of the company's stock.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently made changes to their positions in IBM. Harborfront Financial Group LLC acquired a new stake in International Business Machines during the second quarter worth $27,000. Hara Capital LLC acquired a new position in International Business Machines during the 2nd quarter worth about $28,000. Bare Financial Services Inc lifted its position in shares of International Business Machines by 114.6% during the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after purchasing an additional 55 shares in the last quarter. Caitlin John LLC bought a new stake in shares of International Business Machines during the second quarter worth $35,000. Finally, Axiom Investment Management LLC acquired a new position in International Business Machines during the 1st quarter valued at about $36,000. 58.96% of the stock is owned by institutional investors and hedge funds.

About International Business Machines

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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