International Business Machines Corp. (NYSE:IBM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.

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.. “

A number of other analysts have also recently issued reports on IBM. Barclays PLC reissued a “sell” rating on shares of International Business Machines Corp. in a research report on Sunday, July 17th. Morgan Stanley reaffirmed a “buy” rating and issued a $168.00 price target on shares of International Business Machines Corp. in a research report on Sunday, July 17th. Cantor Fitzgerald reaffirmed a “hold” rating on shares of International Business Machines Corp. in a research report on Sunday, July 17th. Vetr cut International Business Machines Corp. from a “hold” rating to a “sell” rating and set a $148.79 price target for the company. in a research report on Tuesday, May 31st. Finally, Credit Suisse Group AG reaffirmed an “underperform” rating and issued a $110.00 price target on shares of International Business Machines Corp. in a research report on Saturday, September 3rd. Five investment analysts have rated the stock with a sell rating, fifteen have given a hold rating and eight have assigned a buy rating to the company. International Business Machines Corp. has an average rating of “Hold” and an average price target of $153.22.

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Shares of International Business Machines Corp. (NYSE:IBM) traded down 0.02% on Tuesday, hitting $154.84. The stock had a trading volume of 1,648,594 shares. International Business Machines Corp. has a 1-year low of $116.90 and a 1-year high of $164.95. The firm’s 50-day moving average is $159.60 and its 200 day moving average is $152.80. The stock has a market cap of $148.00 billion, a P/E ratio of 12.59 and a beta of 0.77.

International Business Machines Corp. (NYSE:IBM) last released its quarterly earnings data on Monday, July 18th. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.89 by $0.06. The firm earned $20.20 billion during the quarter, compared to analysts’ expectations of $20.03 billion. International Business Machines Corp. had a return on equity of 88.92% and a net margin of 14.86%. The business’s revenue for the quarter was down 2.8% on a year-over-year basis. During the same quarter last year, the firm earned $3.84 earnings per share. Equities analysts forecast that International Business Machines Corp. will post $13.51 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Saturday, September 10th. Stockholders of record on Wednesday, August 10th were issued a $1.40 dividend. This represents a $5.60 annualized dividend and a dividend yield of 3.62%. The ex-dividend date of this dividend was Monday, August 8th. International Business Machines Corp.’s payout ratio is currently 45.53%.

In other news, insider John E. Kelly III sold 6,698 shares of the business’s stock in a transaction that occurred on Tuesday, August 2nd. The stock was sold at an average price of $160.89, for a total value of $1,077,641.22. Following the transaction, the insider now directly owns 33,576 shares of the company’s stock, valued at approximately $5,402,042.64. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Erich Clementi sold 2,984 shares of the business’s stock in a transaction that occurred on Thursday, August 25th. The stock was sold at an average price of $159.00, for a total value of $474,456.00. Following the completion of the transaction, the insider now directly owns 22,531 shares in the company, valued at $3,582,429. The disclosure for this sale can be found here. 0.08% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in 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 valued at $102,000 after buying an additional 19 shares in the last quarter. Thomas J. Herzfeld Advisors Inc. purchased a new position in International Business Machines Corp. during the second quarter valued at about $105,000. Cypress Capital Management LLC WY purchased a new position in International Business Machines Corp. during the second quarter valued at about $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 valued at $110,000 after buying an additional 5 shares in the last quarter. Finally, Americafirst Capital Management LLC purchased a new position in International Business Machines Corp. during the second quarter valued at about $120,000. 57.63% of the stock is currently owned by institutional investors and hedge funds.

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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