International Business Machines (NYSE:IBM) Shares Down 1.3% After Analyst Downgrade

International Business Machines Corporation (NYSE:IBM)’s share price dropped 1.3% during mid-day trading on Thursday after Morgan Stanley lowered their price target on the stock from $256.00 to $252.00. Morgan Stanley currently has an equal weight rating on the stock. International Business Machines traded as low as $263.56 and last traded at $283.91. Approximately 16,643,693 shares traded hands during mid-day trading, an increase of 247% from the average daily volume of 4,802,333 shares. The stock had previously closed at $287.51.

Other equities research analysts have also recently issued research reports about the stock. UBS Group boosted their target price on shares of International Business Machines from $200.00 to $210.00 and gave the company a “sell” rating in a research report on Thursday. Wall Street Zen downgraded International Business Machines from a “buy” rating to a “hold” rating in a research note on Saturday, October 18th. Bank of America boosted their price target on International Business Machines from $310.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday. JPMorgan Chase & Co. boosted their price target on International Business Machines from $244.00 to $290.00 and gave the company a “neutral” rating in a research note on Thursday, July 24th. Finally, Jefferies Financial Group boosted their price target on International Business Machines from $280.00 to $305.00 and gave the company a “hold” rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, International Business Machines has a consensus rating of “Hold” and an average price target of $288.00.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Lifestyle Asset Management Inc. raised its stake in International Business Machines by 1.7% during the second quarter. Lifestyle Asset Management Inc. now owns 2,144 shares of the technology company’s stock worth $632,000 after acquiring an additional 36 shares in the last quarter. Whelan Financial raised its stake in International Business Machines by 2.4% during the second quarter. Whelan Financial now owns 1,525 shares of the technology company’s stock worth $450,000 after acquiring an additional 36 shares in the last quarter. Ignite Planners LLC raised its stake in International Business Machines by 0.9% during the second quarter. Ignite Planners LLC now owns 3,964 shares of the technology company’s stock worth $1,133,000 after acquiring an additional 36 shares in the last quarter. Vishria Bird Financial Group LLC raised its stake in International Business Machines by 3.0% during the third quarter. Vishria Bird Financial Group LLC now owns 1,230 shares of the technology company’s stock worth $347,000 after acquiring an additional 36 shares in the last quarter. Finally, TI Trust Inc. raised its stake in International Business Machines by 0.8% during the third quarter. TI Trust Inc. now owns 4,492 shares of the technology company’s stock worth $1,267,000 after acquiring an additional 37 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Stock Performance

The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00. The stock has a market cap of $263.86 billion, a price-to-earnings ratio of 33.96, a P/E/G ratio of 4.42 and a beta of 0.73. The company has a 50 day simple moving average of $264.85 and a 200 day simple moving average of $262.96.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.45 by $0.20. International Business Machines had a return on equity of 37.99% and a net margin of 12.09%.The company had revenue of $16.33 billion during the quarter, compared to the consensus estimate of $16.10 billion. During the same quarter in the prior year, the firm posted $2.30 earnings per share. The firm’s revenue was up 9.1% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. As a group, equities research analysts forecast that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 10th. Stockholders of record on Monday, November 10th will be paid a $1.68 dividend. The ex-dividend date of this dividend is Monday, November 10th. This represents a $6.72 annualized dividend and a dividend yield of 2.4%. International Business Machines’s dividend payout ratio is currently 109.09%.

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.