International Business Machines (NYSE:IBM) Stock Price Down 2.6% - Here's Why

International Business Machines Co. (NYSE:IBM - Get Free Report) shares traded down 2.6% during mid-day trading on Tuesday . The company traded as low as $246.02 and last traded at $246.31. 779,489 shares changed hands during trading, a decline of 80% from the average session volume of 3,874,623 shares. The stock had previously closed at $252.97.

Wall Street Analyst Weigh In

IBM has been the subject of a number of research reports. Oppenheimer assumed coverage on shares of International Business Machines in a research report on Tuesday, February 11th. They set an "outperform" rating and a $320.00 target price for the company. StockNews.com downgraded International Business Machines from a "buy" rating to a "hold" rating in a research note on Saturday, March 15th. Sanford C. Bernstein increased their target price on International Business Machines from $210.00 to $215.00 and gave the company a "market perform" rating in a research report on Friday, January 3rd. JPMorgan Chase & Co. boosted their price target on shares of International Business Machines from $233.00 to $244.00 and gave the stock a "neutral" rating in a research report on Thursday, January 30th. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of International Business Machines in a research report on Wednesday, February 5th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, International Business Machines presently has an average rating of "Hold" and a consensus price target of $231.44.

Remove Ads

International Business Machines Stock Down 3.5 %

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 company has a market capitalization of $225.71 billion, a PE ratio of 37.98, a price-to-earnings-growth ratio of 5.81 and a beta of 0.74. The business's 50-day simple moving average is $245.88 and its 200-day simple moving average is $229.33.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, January 29th. The technology company reported $3.92 EPS for the quarter, topping the consensus estimate of $3.77 by $0.15. International Business Machines had a return on equity of 38.99% and a net margin of 9.60%. As a group, equities research analysts anticipate that International Business Machines Co. will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 10th. Shareholders of record on Monday, February 10th were issued a $1.67 dividend. The ex-dividend date of this dividend was Monday, February 10th. This represents a $6.68 dividend on an annualized basis and a yield of 2.74%. International Business Machines's payout ratio is 104.21%.

Insider Activity

In related news, SVP Robert David Thomas sold 26,543 shares of the company's stock in a transaction dated 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 sale, the senior vice president now owns 45,007 shares of the company's stock, valued at approximately $11,387,221.07. This represents a 37.10 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 0.18% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Capital World Investors increased its stake in International Business Machines by 413.5% during the fourth quarter. Capital World Investors now owns 11,984,609 shares of the technology company's stock worth $2,634,577,000 after purchasing an additional 9,650,534 shares during the period. Norges Bank acquired a new stake in shares of International Business Machines during the fourth quarter worth about $1,236,176,000. Raymond James Financial Inc. acquired a new stake in shares of International Business Machines in the fourth quarter valued at approximately $592,746,000. Holocene Advisors LP purchased a new stake in International Business Machines in the 3rd quarter valued at $573,306,000. Finally, Northern Trust Corp grew 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 worth $2,384,275,000 after purchasing an additional 1,704,209 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

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.