International Business Machines (NYSE:IBM) Stock Price Down 1.6% – Should You Sell?

Shares of International Business Machines Corporation (NYSE:IBM) dropped 1.6% during mid-day trading on Tuesday . The company traded as low as $254.65 and last traded at $258.25. Approximately 4,922,950 shares traded hands during mid-day trading, a decline of 9% from the average daily volume of 5,407,202 shares. The stock had previously closed at $262.38.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Bank of America upped their target price on International Business Machines from $315.00 to $335.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Jefferies Financial Group boosted their price objective on International Business Machines from $360.00 to $370.00 and gave the stock a “buy” rating in a report on Thursday, January 29th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. Erste Group Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating in a research report on Friday, December 5th. Finally, Oppenheimer set a $380.00 price target on shares of International Business Machines and gave the stock an “outperform” rating in a report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $330.07.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. The company has a market cap of $241.39 billion, a PE ratio of 22.68, a PEG ratio of 2.63 and a beta of 0.69. The business’s 50-day moving average is $298.30 and its 200 day moving average is $284.26.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.33 by $0.19. The business had revenue of $19.69 billion during the quarter, compared to analyst estimates of $19.23 billion. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The company’s revenue was up 12.2% on a year-over-year basis. During the same period in the prior year, the business posted $3.92 earnings per share. On average, equities research analysts predict that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be paid a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, February 10th. International Business Machines’s payout ratio is 60.27%.

Insiders Place Their Bets

In other news, Director David N. Farr bought 1,000 shares of the firm’s stock in a transaction that occurred on Friday, January 30th. The shares were bought at an average cost of $304.00 per share, with a total value of $304,000.00. Following the completion of the purchase, the director directly owned 9,258 shares in the company, valued at $2,814,432. This represents a 12.11% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Insiders own 0.18% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

A number of large investors have recently added to or reduced their stakes in the company. DV Equities LLC purchased a new position in shares of International Business Machines in the fourth quarter valued at about $390,000. J. Goldman & Co LP grew its stake in shares of International Business Machines by 1,197.8% in the fourth quarter. J. Goldman & Co LP now owns 72,480 shares of the technology company’s stock worth $21,469,000 after purchasing an additional 66,895 shares during the last quarter. GAM Holding AG increased its holdings in International Business Machines by 1.0% during the 4th quarter. GAM Holding AG now owns 51,039 shares of the technology company’s stock valued at $15,118,000 after purchasing an additional 486 shares during the period. Abel Hall LLC raised its position in International Business Machines by 141.5% during the 4th quarter. Abel Hall LLC now owns 3,120 shares of the technology company’s stock valued at $924,000 after purchasing an additional 1,828 shares during the last quarter. Finally, EFG International AG purchased a new stake in International Business Machines in the 4th quarter worth approximately $2,394,000. Institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM’s principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.