International Business Machines (NYSE:IBM) Trading Up 1.1% – Here’s Why
by Teresa Graham · The Cerbat GemInternational Business Machines Corporation (NYSE:IBM – Get Free Report) shares were up 1.1% during trading on Wednesday . The company traded as high as $225.00 and last traded at $224.7120. Approximately 4,860,751 shares traded hands during trading, a decline of 19% from the average daily volume of 5,973,443 shares. The stock had previously closed at $222.33.
Key Headlines Impacting International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: IBM and the U.S. Commerce Department announced a plan to launch America’s first purpose-built quantum foundry, with IBM set to receive the largest share of federal support and contribute matching capital. IBM and U.S. Department of Commerce Announce America’s First Purpose-Built Quantum Foundry, Supported by Proposed $1 Billion CHIPS Award
- Positive Sentiment: Analysts and media reports say the quantum funding package is a major new catalyst for IBM, helping drive strong share-price momentum and lifting sentiment around the stock’s long-term growth prospects. IBM shares extend rally as Wedbush calls US quantum investment a “new catalyst”
- Positive Sentiment: IBM’s push into quantum computing and related hot tech segments is being viewed as evidence the company is expanding beyond legacy businesses into higher-growth opportunities. Why IBM Stock Was Rocking it This Week
- Neutral Sentiment: Some coverage highlights that IBM’s valuation, debt load, and execution risk will matter as the company commits capital to the quantum foundry project. IBM’s US$1b Anderon Quantum Foundry Puts Valuation And Debt In Focus
Analyst Upgrades and Downgrades
A number of research analysts recently commented on IBM shares. UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price objective for the company in a research note on Wednesday, February 25th. Oppenheimer lowered their price objective on International Business Machines from $380.00 to $320.00 and set an “outperform” rating for the company in a research note on Thursday, April 16th. Morgan Stanley upped their price objective on International Business Machines from $215.00 to $225.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 23rd. BMO Capital Markets decreased their price target on International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a research note on Thursday, April 23rd. Finally, Wedbush reissued an “outperform” rating on shares of International Business Machines in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $294.41.
International Business Machines Stock Performance
The company has a market cap of $238.62 billion, a P/E ratio of 22.45, a PEG ratio of 2.33 and a beta of 0.58. The company has a 50 day moving average price of $238.60 and a 200-day moving average price of $272.57. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.
International Business Machines (NYSE:IBM – Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. During the same quarter in the prior year, the business posted $1.60 earnings per share. The company’s revenue for the quarter was up 9.5% compared to the same quarter last year. Equities analysts expect that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.
International Business Machines Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. International Business Machines’s payout ratio is currently 59.77%.
Insider Buying and Selling at International Business Machines
In other news, Director Michael Miebach acquired 434 shares of the business’s stock in a transaction dated Wednesday, February 25th. The stock was acquired at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the acquisition, the director directly owned 434 shares in the company, valued at $101,265.22. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. 0.27% of the stock is currently owned by company insiders.
Institutional Trading of International Business Machines
Several institutional investors have recently modified their holdings of IBM. Family CFO Inc acquired a new stake in shares of International Business Machines in the fourth quarter valued at $25,000. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines in the fourth quarter valued at $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines in the first quarter valued at $26,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines in the fourth quarter valued at $28,000. Finally, Cornerstone Financial Management LLC acquired a new stake in shares of International Business Machines in the fourth quarter valued at $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.
International Business Machines Company Profile
International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.
IBM’s principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.