According to Zacks, “IBM provides advanced information technology solutions, including computer systems, software, storage systems and microelectronics. Softness in Systems revenues and technology & cloud platforms remain a concern. Stiff competition does not bode well for Storage hardware segment. We believe the strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud is a headwind. Additionally, ballooning debt levels have been troubling IBM over time. However, IBM’s improving position in the hosted cloud, security and analytics bodes well for investors. RedHat acquisition aimed at enhancing hybrid cloud platform is likely to pave the way for IBM's growth prospects.”
Other equities research analysts also recently issued research reports about the stock. Credit Suisse Group initiated coverage on shares of IBM in a research report on Thursday, April 11th. They set an outperform rating and a $173.00 price target for the company. ValuEngine raised shares of IBM from a sell rating to a hold rating in a research report on Wednesday, February 13th. Royal Bank of Canada reissued an outperform rating and set a $160.00 price target (up previously from $155.00) on shares of IBM in a research report on Wednesday, January 23rd. Wedbush reissued a hold rating and set a $131.00 price target on shares of IBM in a research report on Wednesday, January 23rd. Finally, BMO Capital Markets raised their price target on shares of IBM to $147.00 and gave the company a market perform rating in a research report on Wednesday, January 23rd. They noted that the move was a valuation call. Four investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and seven have given a buy rating to the stock. IBM presently has an average rating of Hold and an average target price of $155.72.
IBM (NYSE:IBM) last announced its earnings results on Tuesday, April 16th. The technology company reported $2.25 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.22 by $0.03. IBM had a net margin of 10.97% and a return on equity of 68.61%. The business had revenue of $18.18 billion during the quarter, compared to the consensus estimate of $18.53 billion. During the same quarter last year, the firm earned $2.45 earnings per share. The business’s revenue for the quarter was down 4.7% on a year-over-year basis. On average, sell-side analysts anticipate that IBM will post 13.9 EPS for the current year.
In related news, insider Diane J. Gherson sold 5,754 shares of the firm’s stock in a transaction that occurred on Wednesday, February 6th. The shares were sold at an average price of $135.67, for a total value of $780,645.18. Following the sale, the insider now owns 23,117 shares in the company, valued at $3,136,283.39. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Diane J. Gherson sold 1,989 shares of the firm’s stock in a transaction that occurred on Wednesday, February 13th. The stock was sold at an average price of $137.25, for a total transaction of $272,990.25. The disclosure for this sale can be found here. Insiders sold 20,867 shares of company stock worth $2,877,569 in the last 90 days. 0.19% of the stock is currently owned by corporate insiders.
Hedge funds have recently modified their holdings of the stock. Nalls Sherbakoff Group LLC purchased a new stake in IBM in the fourth quarter worth approximately $34,000. Sycomore Asset Management purchased a new position in shares of IBM during the 4th quarter worth $81,000. Sharkey Howes & Javer boosted its stake in shares of IBM by 75.9% during the 4th quarter. Sharkey Howes & Javer now owns 721 shares of the technology company’s stock worth $82,000 after acquiring an additional 311 shares during the last quarter. Sonora Investment Management LLC boosted its stake in shares of IBM by 166.2% during the 4th quarter. Sonora Investment Management LLC now owns 1,637 shares of the technology company’s stock worth $186,000 after acquiring an additional 1,022 shares during the last quarter. Finally, Paloma Partners Management Co boosted its stake in shares of IBM by 127.4% during the 3rd quarter. Paloma Partners Management Co now owns 1,453 shares of the technology company’s stock worth $220,000 after acquiring an additional 6,757 shares during the last quarter. Institutional investors own 55.58% of the company’s stock.
IBM Company Profile
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers a portfolio of enterprise artificial intelligence platforms, such as analytics and data management platforms, cloud data services, talent management, and industry solutions primarily under the Watson Platform, Watson Health, and Watson Internet of Things names.
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