International Business Machines Corp. (NYSE:IBM) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “IBM’s revenues are likely to remain affected in the near term due to the long drawn business transition to higher-growth markets that are not yielding enough to offset declines in traditional segments yet. Intensifying competition in the cloud computing & data analytics arena add to its woes. Nonetheless, IBM’s investments in cloud computing, Big Data, mobile and security have started to gain steam. In the last reported quarter, “Strategic Imperatives” revenues of $8.3 billion formed over 40% of total revenue with Cognitive solutions reporting growth of 3.5%. Also, IBM’s history of strategic acquisitions/deals, which has increased its scale of operations globally, will bolster growth. Additionally, collaborations with the likes of Workday will boost the company's top-line growth in the near term.”
Several other analysts also recently issued reports on IBM. Vetr raised shares of International Business Machines Corp. from a “sell” rating to a “hold” rating and set a $156.55 price target on the stock in a report on Monday, August 29th. Cantor Fitzgerald reaffirmed a “hold” rating and issued a $162.00 price target on shares of International Business Machines Corp. in a report on Monday, September 12th. Cowen and Company reaffirmed an “outperform” rating on shares of International Business Machines Corp. in a report on Wednesday, July 20th. Credit Suisse Group AG reaffirmed a “sell” rating and issued a $110.00 price target on shares of International Business Machines Corp. in a report on Thursday, June 23rd. Finally, Citigroup Inc. upped their price target on shares of International Business Machines Corp. from $140.00 to $160.00 and gave the company a “neutral” rating in a report on Tuesday, July 19th. Three investment analysts have rated the stock with a sell rating, seventeen have given a hold rating and eight have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $154.47.
International Business Machines Corp. (NYSE:IBM) opened at 156.77 on Monday. The stock has a market cap of $149.85 billion, a PE ratio of 12.75 and a beta of 0.77. International Business Machines Corp. has a 52-week low of $116.90 and a 52-week high of $164.95. The company’s 50 day moving average is $158.52 and its 200-day moving average is $153.47.
International Business Machines Corp. (NYSE:IBM) last released its quarterly earnings data on Monday, July 18th. The technology company reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.89 by $0.06. The firm had revenue of $20.20 billion for the quarter, compared to the consensus estimate of $20.03 billion. International Business Machines Corp. had a net margin of 14.86% and a return on equity of 88.92%. The firm’s revenue was down 2.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.84 earnings per share. On average, equities analysts anticipate that International Business Machines Corp. will post $13.51 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Saturday, September 10th. Stockholders of record on Wednesday, August 10th were paid a $1.40 dividend. The ex-dividend date of this dividend was Monday, August 8th. This represents a $5.60 annualized dividend and a dividend yield of 3.57%. International Business Machines Corp.’s dividend payout ratio (DPR) is presently 45.53%.
In other International Business Machines Corp. news, insider Erich Clementi sold 2,984 shares of the stock in a transaction on Thursday, August 25th. The shares were sold at an average price of $159.00, for a total transaction of $474,456.00. Following the transaction, the insider now directly owns 22,531 shares in the company, valued at approximately $3,582,429. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Robert J. Picciano sold 1,922 shares of the stock in a transaction on Wednesday, August 31st. The shares were sold at an average price of $159.16, for a total transaction of $305,905.52. Following the transaction, the insider now owns 35,861 shares in the company, valued at $5,707,636.76. The disclosure for this sale can be found here. 0.27% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of IBM. Roble Belko & Company Inc increased its position in International Business Machines Corp. by 2.9% in the second quarter. Roble Belko & Company Inc now owns 674 shares of the technology company’s stock worth $102,000 after buying an additional 19 shares during the period. Thomas J. Herzfeld Advisors Inc. bought a new position in International Business Machines Corp. during the second quarter worth approximately $105,000. Cypress Capital Management LLC WY bought a new position in International Business Machines Corp. during the second quarter worth approximately $107,000. Jackson Grant Investment Advisers Inc. increased its position in International Business Machines Corp. by 0.7% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 726 shares of the technology company’s stock worth $110,000 after buying an additional 5 shares during the period. Finally, Americafirst Capital Management LLC bought a new position in International Business Machines Corp. during the second quarter worth approximately $120,000. Hedge funds and other institutional investors own 57.61% of the company’s stock.
About International Business Machines Corp.
International Business Machines Corporation (IBM) is a technology company. The Company operates through five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems Hardware and Global Financing. The Company’s GTS segment offers services, including strategic outsourcing, integrated technology services, cloud and technology support services (maintenance services).
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