International Business Machines Corp. (IBM) Lowered to “Sell” at Zacks Investment Research
International Business Machines Corp. (NYSE:IBM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Friday.
According to Zacks, “IBM's first-quarter 2017 result disappointed us. Although the company remains focus on cloud computing, mobile, cognitive technologies and artificial intelligence, we believe that the slow turnaround is affecting its overall growth prospect. We believe that intensifying competition in most of the “Strategic Imperatives” is hurting profitability. This is primarily due to continuing investment, which is necessary in order to remain competitive against the likes of Amazon, Microsoft, Alphabet, salesforce.com and Oracle. Although IBM has been expanding product portfolio into newer technologies like Blockchain, Quantum computing and Containers through frequent acquisitions, we believe that these are still in nascent stage and will take some time to contribute meaningfully towards top-line growth. Moreover, sluggish IT spending remains a concern. Notably, IBM has underperformed the broader market on a year-to-date basis.”
Other analysts have also recently issued research reports about the stock. Morgan Stanley raised their target price on shares of International Business Machines Corp. to $9.00 in a report on Thursday, January 12th. Sanford C. Bernstein raised their price objective on shares of International Business Machines Corp. to $150.00 in a report on Monday, March 6th. Drexel Hamilton reissued a “buy” rating and set a $186.00 price objective on shares of International Business Machines Corp. in a report on Tuesday, January 17th. Stifel Nicolaus raised their price objective on shares of International Business Machines Corp. from $165.00 to $192.00 and gave the stock a “buy” rating in a report on Thursday, January 12th. Finally, Argus reissued a “buy” rating and set a $185.00 price objective (up previously from $175.00) on shares of International Business Machines Corp. in a report on Monday, January 23rd. Eight research analysts have rated the stock with a sell rating, fourteen have given a hold rating and six have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $166.83.
International Business Machines Corp. (NYSE:IBM) traded down 0.77% during midday trading on Friday, hitting $161.05. 2,282,469 shares of the stock traded hands. The firm has a market cap of $151.90 billion, a P/E ratio of 13.01 and a beta of 0.96. International Business Machines Corp. has a 12-month low of $142.50 and a 12-month high of $182.79. The company’s 50-day moving average is $174.10 and its 200 day moving average is $167.58. International Business Machines Corp. also was the recipient of some unusual options trading activity on Tuesday. Stock investors acquired 3,300 call options on the stock. This is an increase of approximately 315% compared to the typical daily volume of 795 call options.
International Business Machines Corp. (NYSE:IBM) last issued its earnings results on Tuesday, April 18th. The technology company reported $2.38 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.35 by $0.03. The firm had revenue of $18.16 billion for the quarter, compared to analysts’ expectations of $18.37 billion. International Business Machines Corp. had a net margin of 14.85% and a return on equity of 78.32%. The firm’s revenue was down 2.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.35 earnings per share. On average, analysts anticipate that International Business Machines Corp. will post $13.78 EPS for the current fiscal year.
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In related news, insider Diane J. Gherson sold 5,000 shares of the business’s stock in a transaction dated Monday, February 13th. The shares were sold at an average price of $179.18, for a total value of $895,900.00. Following the sale, the insider now directly owns 20,952 shares in the company, valued at approximately $3,754,179.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider James J. Kavanaugh sold 559 shares of the business’s stock in a transaction dated Tuesday, February 7th. The stock was sold at an average price of $178.31, for a total transaction of $99,675.29. Following the completion of the sale, the insider now owns 29,856 shares in the company, valued at $5,323,623.36. The disclosure for this sale can be found here. 0.08% of the stock is owned by insiders.
Several large investors have recently added to or reduced their stakes in IBM. Massey Quick & Co. LLC purchased a new position in shares of International Business Machines Corp. during the fourth quarter valued at $108,000. Kernodle & Katon Asset Management Group LLC increased its position in shares of International Business Machines Corp. by 5.2% in the third quarter. Kernodle & Katon Asset Management Group LLC now owns 687 shares of the technology company’s stock valued at $109,000 after buying an additional 34 shares during the last quarter. Hemenway Trust Co LLC purchased a new position in shares of International Business Machines Corp. during the fourth quarter valued at $110,000. Thomas J. Herzfeld Advisors Inc. purchased a new position in shares of International Business Machines Corp. during the fourth quarter valued at $117,000. Finally, Capital Analysts LLC increased its position in shares of International Business Machines Corp. by 5.5% in the fourth quarter. Capital Analysts LLC now owns 726 shares of the technology company’s stock valued at $121,000 after buying an additional 38 shares during the last quarter. Institutional investors and hedge funds own 58.65% of the company’s stock.
About International Business Machines Corp.
International Business Machines Corporation (IBM) is a technology company. The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing. The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems.
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