International Business Machines (NYSE:IBM) Shares Gap Down on Analyst Downgrade

International Business Machines Co. (NYSE:IBM - Get Free Report) shares gapped down before the market opened on Thursday after Morgan Stanley lowered their price target on the stock from $237.00 to $233.00. The stock had previously closed at $245.48, but opened at $231.18. Morgan Stanley currently has an equal weight rating on the stock. International Business Machines shares last traded at $231.15, with a volume of 5,791,240 shares.

A number of other equities analysts also recently weighed in on IBM. Oppenheimer started coverage on International Business Machines in a research report on Tuesday, February 11th. They set an "outperform" rating and a $320.00 price target on the stock. Erste Group Bank raised International Business Machines from a "hold" rating to a "strong-buy" rating in a report on Monday, March 17th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of International Business Machines in a report on Wednesday, February 5th. Jefferies Financial Group reiterated a "hold" rating on shares of International Business Machines in a research note on Wednesday. Finally, Wedbush reissued an "outperform" rating and issued a $300.00 target price on shares of International Business Machines in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, International Business Machines has a consensus rating of "Hold" and an average price target of $242.41.

Insider Transactions at International Business Machines

In related news, SVP Robert David Thomas sold 26,543 shares of the firm's stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $253.01, for a total value of $6,715,644.43. Following the completion of the transaction, the senior vice president now owns 45,007 shares in the company, valued at $11,387,221.07. This trade represents a 37.10 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.18% of the company's stock.

Hedge Funds Weigh In On International Business Machines

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in International Business Machines by 1.7% during the 4th quarter. Vanguard Group Inc. now owns 91,839,252 shares of the technology company's stock worth $20,189,023,000 after buying an additional 1,539,888 shares during the period. Geode Capital Management LLC lifted its stake in shares of International Business Machines by 2.1% in the fourth quarter. Geode Capital Management LLC now owns 20,909,646 shares of the technology company's stock worth $4,589,145,000 after acquiring an additional 427,499 shares during the period. Capital World Investors boosted its holdings in International Business Machines by 413.5% in the fourth quarter. Capital World Investors now owns 11,984,609 shares of the technology company's stock valued at $2,634,577,000 after acquiring an additional 9,650,534 shares during the last quarter. Northern Trust Corp increased its position in International Business Machines by 18.6% during the 4th quarter. Northern Trust Corp now owns 10,845,993 shares of the technology company's stock valued at $2,384,275,000 after purchasing an additional 1,704,209 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in International Business Machines by 9.8% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,112,092 shares of the technology company's stock worth $1,783,281,000 after purchasing an additional 722,582 shares during the last quarter. Institutional investors own 58.96% of the company's stock.

International Business Machines Stock Up 1.4 %

The stock's 50-day moving average price is $245.34 and its 200-day moving average price is $233.91. The company has a current ratio of 1.04, a quick ratio of 1.00 and a debt-to-equity ratio of 1.82. The stock has a market cap of $215.59 billion, a price-to-earnings ratio of 36.27, a P/E/G ratio of 5.81 and a beta of 0.67.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, April 23rd. The technology company reported $1.60 earnings per share for the quarter, topping analysts' consensus estimates of $1.42 by $0.18. The business had revenue of $14.54 billion during the quarter, compared to the consensus estimate of $14.41 billion. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. On average, sell-side analysts expect that International Business Machines Co. will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 10th. Investors of record on Monday, February 10th were paid a dividend of $1.67 per share. The ex-dividend date of this dividend was Monday, February 10th. This represents a $6.68 annualized dividend and a yield of 2.87%. International Business Machines's dividend payout ratio is currently 104.21%.

About International Business Machines

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.