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

International Business Machines Corporation (NYSE:IBM)’s stock price gapped down prior to trading on Thursday after Morgan Stanley lowered their price target on the stock from $256.00 to $252.00. The stock had previously closed at $287.51, but opened at $264.95. Morgan Stanley currently has an equal weight rating on the stock. International Business Machines shares last traded at $274.15, with a volume of 3,375,629 shares.

Other equities research analysts have also issued research reports about the stock. The Goldman Sachs Group raised their price target on shares of International Business Machines from $270.00 to $310.00 and gave the stock a “buy” rating in a report on Wednesday, July 2nd. Wall Street Zen lowered shares of International Business Machines from a “buy” rating to a “hold” rating in a report on Saturday, October 18th. Royal Bank Of Canada cut their price target on shares of International Business Machines from $315.00 to $300.00 and set an “outperform” rating on the stock in a report on Thursday. UBS Group raised their price target on shares of International Business Machines from $200.00 to $210.00 and gave the stock a “sell” rating in a report on Thursday. Finally, Jefferies Financial Group raised their price target on shares of International Business Machines from $280.00 to $305.00 and gave the stock a “hold” rating in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, International Business Machines presently has an average rating of “Hold” and an average price target of $288.00.

Institutional Investors Weigh In On International Business Machines

Hedge funds and other institutional investors have recently made changes to their positions in the company. Family CFO Inc acquired a new stake in shares of International Business Machines during the 2nd quarter worth approximately $25,000. Christopher J. Hasenberg Inc acquired a new stake in shares of International Business Machines during the 1st quarter worth approximately $27,000. Winnow Wealth LLC acquired a new stake in shares of International Business Machines during the 2nd quarter worth approximately $27,000. SSA Swiss Advisors AG acquired a new stake in shares of International Business Machines during the 1st quarter worth approximately $28,000. Finally, Dagco Inc. purchased a new position in shares of International Business Machines during the 1st quarter valued at approximately $31,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Stock Down 1.3%

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

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, October 22nd. The technology company reported $2.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.45 by $0.20. The firm had revenue of $16.33 billion for the quarter, compared to analyst estimates of $16.10 billion. International Business Machines had a return on equity of 37.99% and a net margin of 12.09%.The business’s revenue was up 9.1% on a year-over-year basis. During the same quarter last year, the firm posted $2.30 EPS. International Business Machines has set its FY 2025 guidance at EPS. As a group, analysts forecast that International Business Machines Corporation will post 10.78 earnings per share 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. Shareholders of record on Monday, November 10th will be issued a $1.68 dividend. The ex-dividend date is Monday, November 10th. This represents a $6.72 dividend on an annualized basis and a yield of 2.4%. International Business Machines’s dividend payout ratio (DPR) is presently 109.09%.

International Business Machines Company Profile

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.