International Business Machines (NYSE:IBM) Stock Price Down 1.9% – Time to Sell?

International Business Machines Corporation (NYSE:IBM) fell 1.9% on Monday. The company traded as low as $252.36 and last traded at $252.9840. Approximately 5,434,523 shares traded hands 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

A number of analysts have recently issued reports on the stock. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 15th. Daiwa Securities Group reduced their target price on International Business Machines from $247.00 to $217.00 and set a “neutral” rating for the company in a research note on Wednesday, July 29th. Jefferies Financial Group boosted their target price on International Business Machines from $270.00 to $280.00 and gave the stock a “buy” rating in a report on Thursday, October 22nd. Wall Street Zen upgraded International Business Machines from a “sell” rating to a “hold” rating in a research note on Saturday, October 24th. Finally, Sanford C. Bernstein cut their price target on International Business Machines from $280.00 to $230.00 and set a “market perform” rating for the company in a report on Thursday, July 23rd. Nineteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $266.12.

International Business Machines Stock Performance

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

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.85 by $0.10. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The company had revenue of $17.10 billion during the quarter, compared to analysts’ expectations of $16.82 billion. During the same quarter in the previous year, the business posted $2.65 earnings per share. International Business Machines’s quarterly revenue was up 4.7% on a year-over-year basis. 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 announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be given a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. International Business Machines’s payout ratio is presently 57.63%.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of the business’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 transaction, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

Hedge funds and other institutional investors have recently modified their holdings of the stock. Harborfront Financial Group LLC bought a new position in International Business Machines in the second quarter valued at about $27,000. Hara Capital LLC acquired a new position in shares of International Business Machines in the second quarter valued at approximately $28,000. Bare Financial Services Inc increased its stake in shares of International Business Machines by 114.6% in the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock valued at $29,000 after buying an additional 55 shares during the period. Caitlin John LLC bought a new stake in International Business Machines during the 2nd quarter worth approximately $35,000. Finally, Axiom Investment Management LLC acquired a new position in International Business Machines in the 1st quarter valued at approximately $36,000. Institutional investors own 58.96% of the company’s stock.

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.