International Business Machines (NYSE:IBM) Shares Down 9.3% After Analyst Downgrade

International Business Machines Co. (NYSE:IBM)’s stock price was down 9.3% on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $190.00 to $185.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. International Business Machines traded as low as $165.66 and last traded at $167.06. Approximately 7,696,464 shares changed hands during trading, an increase of 59% from the average daily volume of 4,836,812 shares. The stock had previously closed at $184.10.

Other equities research analysts also recently issued research reports about the stock. Societe Generale reaffirmed a “sell” rating and set a $143.00 price objective on shares of International Business Machines in a research report on Friday, January 5th. StockNews.com downgraded shares of International Business Machines from a “buy” rating to a “hold” rating in a research report on Tuesday. Evercore ISI upgraded shares of International Business Machines from an “in-line” rating to an “outperform” rating and upped their target price for the stock from $165.00 to $200.00 in a research report on Friday, January 19th. Bank of America upped their target price on shares of International Business Machines from $200.00 to $220.00 and gave the stock a “buy” rating in a research report on Thursday, March 14th. Finally, UBS Group upped their target price on shares of International Business Machines from $125.00 to $130.00 and gave the stock a “sell” rating in a research report on Monday. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, International Business Machines has an average rating of “Hold” and a consensus target price of $180.31.

Institutional Trading of International Business Machines

Institutional investors have recently made changes to their positions in the stock. Naples Money Management LLC acquired a new stake in shares of International Business Machines in the 4th quarter worth approximately $28,000. Creekmur Asset Management LLC acquired a new stake in International Business Machines during the fourth quarter valued at approximately $29,000. Ables Iannone Moore & Associates Inc. acquired a new stake in International Business Machines during the fourth quarter valued at approximately $31,000. Financial Synergies Wealth Advisors Inc. lifted its stake in International Business Machines by 164.0% during the first quarter. Financial Synergies Wealth Advisors Inc. now owns 198 shares of the technology company’s stock valued at $38,000 after purchasing an additional 123 shares during the last quarter. Finally, Creative Capital Management Investments LLC lifted its stake in International Business Machines by 56.9% during the first quarter. Creative Capital Management Investments LLC now owns 204 shares of the technology company’s stock valued at $39,000 after purchasing an additional 74 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Trading Down 8.0 %

The firm has a market capitalization of $155.20 billion, a price-to-earnings ratio of 20.82, a price-to-earnings-growth ratio of 3.58 and a beta of 0.70. The firm’s 50 day moving average is $188.00 and its 200 day moving average is $169.97. The company has a quick ratio of 0.93, a current ratio of 0.96 and a debt-to-equity ratio of 2.22.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, April 24th. The technology company reported $1.68 EPS for the quarter, beating the consensus estimate of $1.59 by $0.09. International Business Machines had a net margin of 12.13% and a return on equity of 39.55%. The business had revenue of $14.46 billion during the quarter, compared to analyst estimates of $14.53 billion. During the same period in the prior year, the business earned $1.36 earnings per share. The business’s quarterly revenue was up 1.5% on a year-over-year basis. Equities analysts forecast that International Business Machines Co. will post 10.04 earnings per share for the current year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Saturday, March 9th. Investors of record on Friday, February 9th were given a $1.66 dividend. The ex-dividend date was Thursday, February 8th. This represents a $6.64 annualized dividend and a dividend yield of 3.92%. International Business Machines’s dividend payout ratio (DPR) is presently 81.67%.

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.