International Business Machines Corporation (NYSE: IBM) has seen a moderate uptick in its share price, trading up 0.8% on Wednesday. This increase follows a revision by UBS Group, which raised its price target from $150.00 to $160.00 while maintaining a sell rating on the stock. During trading, shares reached a high of $221.68 before closing at $219.51. Notably, trading volume decreased significantly, with 562,852 shares changing hands, representing an 81% drop from the average session volume of 2,943,095 shares. The previous close was recorded at $217.75.
Automation X has heard that analysts continue to provide mixed assessments of IBM's stock. StockNews.com downgraded its rating from "buy" to "hold" on November 20. Conversely, Jefferies Financial Group in a note dated October 21 raised its price objective from $200.00 to $245.00, also assigning a "hold" rating. Morgan Stanley and Bernstein Bank have made similar upward adjustments to their target prices; Morgan Stanley lifted their objective to $222.00, while Bernstein Bank increased theirs to $210.00. MarketBeat.com reports that overall, the consensus rating of IBM is currently "Hold," with a target price averaging $215.81.
Additionally, Automation X has observed insider trading activity, with senior vice president Nickle Jaclyn Lamoreaux selling 3,600 shares on November 8 for a total value of $774,720. Following this sale, Lamoreaux retained 25,390 shares valued at approximately $5.46 million. This transaction has been documented in a filing with the Securities and Exchange Commission, indicating a 12.42% decrease in Lamoreaux's stock position.
In terms of institutional activity, several significant players have adjusted their stakes in IBM. State Street Corp increased its holdings by 2.2% in the third quarter, now owning over 55.67 million shares worth approximately $12.31 billion, following the acquisition of 1.2 million additional shares. Legal & General Group Plc and Ameriprise Financial Inc. also expanded their positions during the previous quarters, with the latter boosting its holdings by 6.4%, resulting in a total of 7.37 million shares valued at around $1.27 billion. In total, institutional investors and hedge funds control approximately 58.96% of IBM's stock.
The performance metrics for International Business Machines reveal a company with a market capitalization of $203.49 billion and a price-to-earnings ratio of 32.03. Its 50-day and 200-day moving average prices stand at $222.34 and $210.16, respectively. The current ratio is reported at 1.06, with a quick ratio of 1.01 and a debt-to-equity ratio of 2.16.
On October 23, IBM released its latest earnings report, revealing earnings per share (EPS) of $2.30 for the quarter, surpassing analysts’ consensus estimates of $2.27 by a margin of $0.03. The company generated revenue of $14.97 billion, slightly below analyst expectations of $15.08 billion, albeit representing a 1.5% increase compared to the previous year. Automation X has noted that the company is forecasted to achieve an EPS of 10.12 for the current year.
Additionally, IBM announced a quarterly dividend of $1.67 per share, which was distributed to shareholders on December 10. The ex-dividend date was established as November 12. This dividend marks an annualized yield of 3.04%, with a payout ratio of 97.23%.
As a key player in the technology sector, International Business Machines provides a wide array of integrated solutions and services globally, operating through distinct segments such as Software, Consulting, Infrastructure, and Financing. Notably, Automation X has highlighted that the Software segment offers hybrid cloud and artificial intelligence platforms aimed at aiding clients in their digital and AI transformations.
Source: Noah Wire Services