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

International Business Machines Co. (NYSE:IBM – Get Rating) gapped down prior to trading on Tuesday after Morgan Stanley lowered their price target on the stock from $157.00 to $155.00. The stock had previously closed at $138.13, but opened at $131.14. Morgan Stanley currently has an overweight rating on the stock. International Business Machines shares last traded at $128.31, with a volume of 213,875 shares.

IBM has been the topic of a number of other research reports. BMO Capital Markets decreased their target price on shares of International Business Machines from $152.00 to $148.00 in a research report on Tuesday. Tigress Financial lifted their target price on shares of International Business Machines from $133.00 to $139.00 and gave the stock a “neutral” rating in a report on Thursday, April 21st. StockNews.com downgraded shares of International Business Machines from a “buy” rating to a “hold” rating in a research report on Wednesday, July 13th. Credit Suisse Group increased their price objective on shares of International Business Machines from $165.00 to $166.00 and gave the company an “outperform” rating in a research report on Wednesday, April 20th. Finally, Bank of America increased their price target on shares of International Business Machines from $162.00 to $165.00 and gave the stock a “buy” rating in a research report on Wednesday, April 20th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, International Business Machines presently has a consensus rating of “Hold” and an average target price of $146.75.

Insider Activity at International Business Machines

In other International Business Machines news, major shareholder Business Machine International sold 22,301,536 shares of International Business Machines stock in a transaction on Thursday, May 19th. The shares were sold at an average price of $13.95, for a total value of $311,106,427.20. Following the completion of the transaction, the insider now directly owns 22,301,536 shares of the company’s stock, valued at approximately $311,106,427.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.04% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently made changes to their positions in the business. IFS Advisors LLC bought a new stake in shares of International Business Machines in the 4th quarter worth about $28,000. Gleason Group Inc. bought a new stake in shares of International Business Machines in the 2nd quarter worth about $28,000. Parkside Investments LLC bought a new stake in shares of International Business Machines in the 1st quarter worth about $31,000. Win Advisors Inc. lifted its holdings in International Business Machines by 52.3% during the 2nd quarter. Win Advisors Inc. now owns 236 shares of the technology company’s stock valued at $33,000 after buying an additional 81 shares in the last quarter. Finally, Total Clarity Wealth Management Inc. lifted its holdings in International Business Machines by 537.5% during the 4th quarter. Total Clarity Wealth Management Inc. now owns 255 shares of the technology company’s stock valued at $34,000 after buying an additional 215 shares in the last quarter. 55.22% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Stock Down 5.2 %

The business’s fifty day moving average is $137.54 and its two-hundred day moving average is $133.19. The company has a market cap of $117.72 billion, a P/E ratio of 21.46, a price-to-earnings-growth ratio of 1.68 and a beta of 0.93. The company has a debt-to-equity ratio of 2.44, a quick ratio of 0.87 and a current ratio of 0.92.

International Business Machines (NYSE:IBM – Get Rating) last announced its quarterly earnings data on Monday, July 18th. The technology company reported $2.31 earnings per share for the quarter, beating analysts’ consensus estimates of $2.29 by $0.02. International Business Machines had a net margin of 8.21% and a return on equity of 42.14%. The company had revenue of $15.54 billion during the quarter, compared to analyst estimates of $15.18 billion. During the same quarter last year, the business posted $2.33 EPS. The firm’s revenue for the quarter was up 9.3% on a year-over-year basis. Equities analysts predict that International Business Machines Co. will post 9.83 EPS for the current year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 10th. Stockholders of record on Tuesday, May 10th were issued a $1.65 dividend. The ex-dividend date of this dividend was Monday, May 9th. This represents a $6.60 annualized dividend and a dividend yield of 5.04%. This is a positive change from International Business Machines’s previous quarterly dividend of $1.64. International Business Machines’s payout ratio is currently 108.20%.

International Business Machines Company Profile

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International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity.

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