International Business Machines (NYSE:IBM) Shares Up 1.8% - Here's What Happened

Key Points

• IBM shares rose 1.8% to approximately $236.36, with trading volume about 34% below its average.
• Analysts recently lowered several price targets, but IBM retains a “Moderate Buy” consensus with an average target of $255.76.
• IBM met quarterly EPS estimates at $2.93, while revenue of $17.16 billion fell short of expectations; the company also declared a quarterly dividend of $1.69 per share, yielding about 2.9%.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) traded up 1.8% during trading on Monday. The company traded as high as $238.38 and last traded at $236.3550. Approximately 4,896,342 shares traded hands during mid-day trading, a decline of 34% from the average daily volume of 7,459,210 shares. The stock had previously closed at $232.14.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Sanford C. Bernstein decreased their target price on shares of International Business Machines from $280.00 to $230.00 and set a "market perform" rating for the company in a research report on Thursday, July 23rd. Robert W. Baird began coverage on shares of International Business Machines in a research note on Tuesday, July 21st. They issued a "neutral" rating and a $230.00 price target on the stock. HSBC cut their price target on shares of International Business Machines from $175.00 to $174.00 in a research report on Friday, July 24th. BMO Capital Markets cut their price target on shares of International Business Machines from $270.00 to $230.00 and set a "market perform" rating on the stock in a research report on Thursday, July 23rd. Finally, Citigroup reduced their price objective on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a research note on Friday, July 24th. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, International Business Machines presently has an average rating of "Moderate Buy" and an average target price of $255.76.

International Business Machines Price Performance

The stock has a market cap of $222.68 billion, a price-to-earnings ratio of 20.97, a price-to-earnings-growth ratio of 2.23 and a beta of 0.73. The company has a 50-day simple moving average of $231.99 and a two-hundred day simple moving average of $243.63. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The business's revenue was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.80 EPS. As a group, equities research analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were given a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines's dividend payout ratio is 59.98%.

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction 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 owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.27% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Talbot Financial LLC raised its position in International Business Machines by 8.7% in the 3rd quarter. Talbot Financial LLC now owns 2,500 shares of the technology company's stock valued at $550,000 after buying an additional 200 shares during the last quarter. Herold Advisors Inc. lifted its stake in International Business Machines by 2.5% during the 3rd quarter. Herold Advisors Inc. now owns 20,236 shares of the technology company's stock valued at $4,450,000 after acquiring an additional 488 shares in the last quarter. LexAurum Advisors LLC boosted its holdings in International Business Machines by 26.3% during the 3rd quarter. LexAurum Advisors LLC now owns 5,202 shares of the technology company's stock worth $1,144,000 after acquiring an additional 1,082 shares during the last quarter. Narus Financial Partners LLC boosted its holdings in International Business Machines by 1.7% during the 3rd quarter. Narus Financial Partners LLC now owns 5,802 shares of the technology company's stock worth $1,276,000 after acquiring an additional 98 shares during the last quarter. Finally, Grant Private Wealth Management Inc grew its stake in shares of International Business Machines by 83.2% in the 3rd quarter. Grant Private Wealth Management Inc now owns 6,200 shares of the technology company's stock worth $1,363,000 after acquiring an additional 2,815 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company Profile

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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