International Business Machines (NYSE:IBM) Reaches New 12-Month High - Should You Buy?

International Business Machines Co. (NYSE:IBM - Get Free Report) shares reached a new 52-week high on Friday . The company traded as high as $237.37 and last traded at $237.00, with a volume of 230505 shares trading hands. The stock had previously closed at $234.75.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on IBM. StockNews.com cut International Business Machines from a "buy" rating to a "hold" rating in a research report on Wednesday, November 20th. Royal Bank of Canada reaffirmed an "outperform" rating and set a $250.00 price objective on shares of International Business Machines in a report on Thursday, October 24th. DZ Bank downgraded shares of International Business Machines from a "buy" rating to a "hold" rating and set a $215.00 target price on the stock. in a report on Wednesday, October 2nd. The Goldman Sachs Group raised their target price on shares of International Business Machines from $220.00 to $250.00 and gave the company a "buy" rating in a research note on Monday, September 30th. Finally, Stifel Nicolaus boosted their price target on shares of International Business Machines from $205.00 to $246.00 and gave the stock a "buy" rating in a research note on Wednesday, October 16th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat, International Business Machines presently has a consensus rating of "Hold" and an average target price of $208.12.

International Business Machines Stock Up 1.4 %

The company has a market cap of $220.11 billion, a PE ratio of 34.65, a price-to-earnings-growth ratio of 5.14 and a beta of 0.73. The company has a fifty day moving average of $221.40 and a two-hundred day moving average of $199.02. The company has a debt-to-equity ratio of 2.16, a quick ratio of 1.01 and a current ratio of 1.06.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, October 23rd. The technology company reported $2.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.27 by $0.03. The firm had revenue of $14.97 billion during the quarter, compared to analyst estimates of $15.08 billion. International Business Machines had a net margin of 10.22% and a return on equity of 40.52%. The business's revenue was up 1.5% on a year-over-year basis. During the same quarter last year, the business earned $2.20 EPS. As a group, analysts anticipate that International Business Machines Co. will post 10.12 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 10th. Stockholders of record on Tuesday, November 12th will be paid a dividend of $1.67 per share. The ex-dividend date is Tuesday, November 12th. This represents a $6.68 dividend on an annualized basis and a dividend yield of 2.81%. International Business Machines's dividend payout ratio is 97.23%.

Insider Buying and Selling

In related news, SVP Nickle Jaclyn Lamoreaux sold 3,600 shares of the firm's stock in a transaction dated Friday, November 8th. The shares were sold at an average price of $215.20, for a total value of $774,720.00. Following the transaction, the senior vice president now owns 25,390 shares of the company's stock, valued at $5,463,928. This trade represents a 12.42 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.07% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

Hedge funds have recently added to or reduced their stakes in the stock. State Street Corp grew its stake in International Business Machines by 2.2% in the third quarter. State Street Corp now owns 55,671,883 shares of the technology company's stock worth $12,307,940,000 after purchasing an additional 1,200,803 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of International Business Machines by 4.1% in the 2nd quarter. Legal & General Group Plc now owns 8,487,827 shares of the technology company's stock worth $1,467,974,000 after buying an additional 330,694 shares during the period. Ameriprise Financial Inc. grew its position in shares of International Business Machines by 6.4% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,366,715 shares of the technology company's stock worth $1,274,074,000 after buying an additional 444,698 shares in the last quarter. FMR LLC increased its stake in shares of International Business Machines by 6.0% during the third quarter. FMR LLC now owns 5,195,933 shares of the technology company's stock valued at $1,148,717,000 after buying an additional 294,276 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in shares of International Business Machines by 6.8% in the second quarter. Dimensional Fund Advisors LP now owns 4,796,206 shares of the technology company's stock valued at $829,431,000 after acquiring an additional 304,390 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Company Profile

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.