International Business Machines (NYSE:IBM) Trading Up 0.9% – Should You Buy?

International Business Machines Co. (NYSE:IBM)’s share price traded up 0.9% during trading on Monday . The stock traded as high as $225.96 and last traded at $224.73. 5,481,686 shares changed hands during trading, an increase of 83% from the average session volume of 2,994,162 shares. The stock had previously closed at $222.66.

Analyst Upgrades and Downgrades

IBM has been the subject of a number of recent analyst reports. UBS Group upped their price objective on International Business Machines from $150.00 to $160.00 and gave the company a “sell” rating in a report on Tuesday, January 14th. BMO Capital Markets lifted their price objective on shares of International Business Machines from $235.00 to $260.00 and gave the stock a “market perform” rating in a research note on Thursday, October 24th. The Goldman Sachs Group upped 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. Stifel Nicolaus lifted 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 report on Wednesday, October 16th. Finally, Bank of America raised their price objective on International Business Machines from $209.00 to $250.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, International Business Machines presently has a consensus rating of “Hold” and an average price target of $216.87.

International Business Machines Stock Performance

The stock has a market capitalization of $207.40 billion, a P/E ratio of 32.65, a P/E/G ratio of 4.81 and a beta of 0.74. The company has a quick ratio of 1.01, a current ratio of 1.06 and a debt-to-equity ratio of 2.16. The stock has a 50 day simple moving average of $223.09 and a two-hundred day simple moving average of $211.48.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, October 23rd. The technology company reported $2.30 EPS for the quarter, topping analysts’ consensus estimates of $2.27 by $0.03. International Business Machines had a return on equity of 40.52% and a net margin of 10.22%. The business had revenue of $14.97 billion during the quarter, compared to analysts’ expectations of $15.08 billion. During the same quarter last year, the company posted $2.20 earnings per share. International Business Machines’s quarterly revenue was up 1.5% on a year-over-year basis. On average, equities analysts forecast that International Business Machines Co. will post 10.16 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 10th. Shareholders of record on Tuesday, November 12th were given a dividend of $1.67 per share. The ex-dividend date was Tuesday, November 12th. This represents a $6.68 dividend on an annualized basis and a yield of 2.98%. International Business Machines’s dividend payout ratio (DPR) 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 transaction of $774,720.00. Following the transaction, the senior vice president now directly owns 25,390 shares of the company’s stock, valued at approximately $5,463,928. This trade represents a 12.42 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.07% of the stock is currently owned by insiders.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds have recently added to or reduced their stakes in IBM. Hazlett Burt & Watson Inc. increased its stake in shares of International Business Machines by 1,054.5% in the 3rd quarter. Hazlett Burt & Watson Inc. now owns 127 shares of the technology company’s stock valued at $29,000 after purchasing an additional 116 shares during the last quarter. Hara Capital LLC bought a new position in International Business Machines in the third quarter valued at about $29,000. Avondale Wealth Management raised its stake in International Business Machines by 56.0% during the fourth quarter. Avondale Wealth Management now owns 156 shares of the technology company’s stock worth $34,000 after acquiring an additional 56 shares in the last quarter. Oliver Lagore Vanvalin Investment Group bought a new position in shares of International Business Machines in the second quarter worth about $36,000. Finally, Modus Advisors LLC acquired a new stake in shares of International Business Machines in the 4th quarter valued at approximately $40,000. Institutional investors own 58.96% of the company’s stock.

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.