International Business Machines Corporation (NYSE:IBM – Get Free Report) shares were down 2.7% during trading on Thursday. The company traded as low as $245.72 and last traded at $247.3980. 5,244,844 shares traded hands during trading, a decline of 29% from the average daily volume of 7,337,301 shares. The stock had previously closed at $254.32.
Key International Business Machines News
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: Evercore’s sum-of-the-parts analysis values IBM at $290 a share, above its $275 price target, suggesting the firm sees potential value in IBM’s businesses, including quantum computing. IBM Stock Could Be More Than a ‘Safe Haven.’ Quantum Computing Is a Big Reason
- Positive Sentiment: IBM’s Quantum System Two is now operational at the University of Chicago, expanding its quantum-computing presence and partnerships in Illinois. The installation strengthens IBM’s research and commercialization ecosystem, though financial returns are likely longer term. IBM Unveils Its Most Advanced Quantum Computer in Chicago
- Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform combining quantum and high-performance computing to advance quantum error correction, supporting IBM’s technology roadmap. The initiative targets progress toward a scientifically relevant quantum computer by 2028. Oak Ridge National Laboratory, IBM, and AMD Launch New Co-Design Platform for Quantum Error Correction
- Neutral Sentiment: A recent valuation commentary questions whether IBM’s cash-flow outlook supports the stock’s longer-term share-price gains. The excerpt does not provide a firm valuation conclusion, but it highlights investor scrutiny of the company’s price relative to future cash generation. IBM Stock Could Trade At A Discount After Quantum Computing News
Analysts Set New Price Targets
A number of equities analysts have weighed in on IBM shares. Argus decreased their price target on International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a report on Thursday, July 16th. Jefferies Financial Group boosted their target price on shares of International Business Machines from $270.00 to $280.00 and gave the stock a “buy” rating in a research report on Thursday, October 22nd. BMO Capital Markets upped their target price on shares of International Business Machines from $230.00 to $265.00 and gave the company a “market perform” rating in a research note on Thursday, October 22nd. Yorkville Ives initiated coverage on shares of International Business Machines in a research note on Monday, October 5th. They set an “outperform” rating and a $275.00 price target on the stock. Finally, Citic Securities boosted their price objective on shares of International Business Machines from $294.00 to $297.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, International Business Machines currently has a consensus rating of “Moderate Buy” and an average target price of $266.88.
Get Our Latest Stock Analysis on IBM
International Business Machines Trading Down 1.0%
The company has a current ratio of 0.85, a quick ratio of 0.80 and a debt-to-equity ratio of 1.57. The company has a market cap of $231.28 billion, a price-to-earnings ratio of 20.86, a price-to-earnings-growth ratio of 2.49 and a beta of 0.78. The firm has a 50-day moving average price of $236.76 and a 200 day moving average price of $248.64.
International Business Machines (NYSE:IBM – Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The firm had revenue of $17.10 billion for the quarter, compared to analysts’ expectations of $16.82 billion. During the same period last year, the business posted $2.65 earnings per share. The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. As a group, sell-side analysts forecast that International Business Machines Corporation will post 12.41 EPS for the current year.
International Business Machines Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines’s dividend payout ratio is currently 57.63%.
Insiders Place Their Bets
In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.27% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On International Business Machines
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. MSH Capital Advisors LLC increased its position in International Business Machines by 84.1% in the 3rd quarter. MSH Capital Advisors LLC now owns 4,843 shares of the technology company’s stock valued at $1,079,000 after acquiring an additional 2,212 shares during the period. Cornerstone Advisory LLC boosted its position in International Business Machines by 3.1% during the 3rd quarter. Cornerstone Advisory LLC now owns 4,536 shares of the technology company’s stock worth $998,000 after acquiring an additional 136 shares during the period. Wellington Grp LLC boosted its position in International Business Machines by 4.1% during the 3rd quarter. Wellington Grp LLC now owns 1,889 shares of the technology company’s stock worth $415,000 after acquiring an additional 75 shares during the period. Bernicke Wealth Management Ltd. bought a new position in shares of International Business Machines in the third quarter worth $213,000. Finally, Channel Wealth LLC grew its stake in shares of International Business Machines by 14.0% in the third quarter. Channel Wealth LLC now owns 2,324 shares of the technology company’s stock worth $511,000 after purchasing an additional 286 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.
International Business Machines Company Profile
International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers.
IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.
The company traces its roots to the Computing-Tabulating-Recording Company, formed in 1911, and adopted the name International Business Machines in 1924.
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