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

Key Points

• IBM shares fell 1.1% to about $249.83, with trading volume 53% below the average session volume.
• Analysts maintain a “Moderate Buy” consensus and a $266.12 average price target; 19 rate the stock Buy, 13 Hold, and two Sell.
• IBM beat quarterly estimates, reporting EPS of $2.95 versus $2.85 expected and revenue of $17.10 billion, up 4.7% year over year. It also announced a $1.69 quarterly dividend.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) dropped 1.1% on Tuesday. The company traded as low as $244.61 and last traded at $249.8260. 3,428,726 shares changed hands during trading, a decline of 53% from the average session volume of 7,365,098 shares. The stock had previously closed at $252.51.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on IBM shares. The Goldman Sachs Group reiterated a "buy" rating and set a $300.00 price objective on shares of International Business Machines in a research note on Thursday, October 22nd. Citic Securities increased their target price on International Business Machines from $294.00 to $297.00 and gave the stock a "buy" rating in a research note on Wednesday, July 29th. Daiwa Securities Group reduced their price target on International Business Machines from $247.00 to $217.00 and set a "neutral" rating for the company in a report on Wednesday, July 29th. Citigroup lifted their price target on International Business Machines from $245.00 to $280.00 and gave the stock a "buy" rating in a research report on Thursday, October 22nd. Finally, Barclays upped their price target on shares of International Business Machines from $262.00 to $277.00 and gave the stock an "overweight" rating in a research note on Thursday, October 22nd. Nineteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, International Business Machines has a consensus rating of "Moderate Buy" and a consensus price target of $266.12.

International Business Machines Trading Down 1.1%

The company has a market cap of $236.12 billion, a P/E ratio of 21.30, a P/E/G ratio of 2.49 and a beta of 0.73. The stock's 50-day moving average is $235.51 and its two-hundred day moving average is $249.68. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80.

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 (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.10. The company had revenue of $17.10 billion for the quarter, compared to analysts' expectations of $16.82 billion. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The firm's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter last year, the company posted $2.65 earnings per share. As a group, equities research analysts predict that International Business Machines Corporation will post 12.41 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

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

Insider Activity at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the company's stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.27% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of IBM. BlackRock Inc. bought a new stake in International Business Machines in the second quarter worth approximately $21,586,659,000. Bank of America Corp DE bought a new position in shares of International Business Machines during the 2nd quarter valued at $4,214,868,000. Bank of New York Mellon Corp bought a new position in shares of International Business Machines during the 2nd quarter valued at $2,606,782,000. Legal & General Group Plc acquired a new stake in shares of International Business Machines in the 2nd quarter valued at $1,874,733,000. Finally, Wellington Management Group LLP lifted its stake in shares of International Business Machines by 2,362.2% in the 2nd quarter. Wellington Management Group LLP now owns 6,549,393 shares of the technology company's stock valued at $1,841,755,000 after purchasing an additional 6,283,395 shares during the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

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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