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

International Business Machines Co. (NYSE:IBM)’s share price gapped down before the market opened on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $190.00 to $185.00. The stock had previously closed at $184.10, but opened at $168.20. JPMorgan Chase & Co. currently has a neutral rating on the stock. International Business Machines shares last traded at $167.30, with a volume of 6,297,897 shares.

Several other research firms have also recently weighed in on IBM. StockNews.com cut shares of International Business Machines from a “buy” rating to a “hold” rating in a report on Tuesday. Royal Bank of Canada upped their target price on International Business Machines from $179.00 to $200.00 and gave the stock an “outperform” rating in a research note on Thursday, January 25th. BMO Capital Markets dropped their price target on International Business Machines from $210.00 to $190.00 and set a “market perform” rating for the company in a research report on Thursday. Sanford C. Bernstein boosted their price objective on International Business Machines from $165.00 to $186.00 and gave the stock a “market perform” rating in a report on Thursday, March 7th. Finally, Societe Generale reaffirmed a “sell” rating and issued a $143.00 target price on shares of International Business Machines in a research note on Friday, January 5th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $180.31.

Institutional Trading of International Business Machines

Hedge funds and other institutional investors have recently bought and sold shares of the company. Naples Money Management LLC purchased a new stake in shares of International Business Machines in the 4th quarter valued at $28,000. Creekmur Asset Management LLC purchased a new stake in International Business Machines during the fourth quarter valued at about $29,000. Briaud Financial Planning Inc purchased a new stake in International Business Machines during the third quarter valued at about $31,000. Ables Iannone Moore & Associates Inc. purchased a new position in shares of International Business Machines in the fourth quarter worth about $31,000. Finally, Stone House Investment Management LLC lifted its stake in shares of International Business Machines by 971.4% in the 3rd quarter. Stone House Investment Management LLC now owns 225 shares of the technology company’s stock valued at $32,000 after acquiring an additional 204 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Price Performance

The firm has a fifty day moving average of $188.00 and a two-hundred day moving average of $169.97. The company has a current ratio of 0.96, a quick ratio of 0.93 and a debt-to-equity ratio of 2.22. The company has a market capitalization of $155.20 billion, a PE ratio of 20.82, a PEG ratio of 3.58 and a beta of 0.70.

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

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Saturday, March 9th. Shareholders of record on Friday, February 9th were issued a $1.66 dividend. This represents a $6.64 dividend on an annualized basis and a yield of 3.92%. The ex-dividend date of this dividend was Thursday, February 8th. 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.