International Business Machines Corp. (IBM) Stock Rating Lowered by Zacks Investment Research
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.. “
Several other research analysts have also recently commented on IBM. Wells Fargo & Co. reiterated a “hold” rating and set a $142.50 price target on shares of International Business Machines Corp. in a report on Tuesday, May 24th. Vetr downgraded shares of International Business Machines Corp. from a “buy” rating to a “hold” rating and set a $157.34 price objective for the company. in a research report on Wednesday, May 25th. JMP Securities restated a “buy” rating and set a $157.00 price objective on shares of International Business Machines Corp. in a research report on Thursday, June 23rd. Credit Suisse Group AG restated a “sell” rating and set a $110.00 price objective on shares of International Business Machines Corp. in a research report on Thursday, June 23rd. Finally, Morgan Stanley restated an “overweight” rating on shares of International Business Machines Corp. in a research report on Wednesday, June 29th. Five investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and eight have given a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $153.22.
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International Business Machines Corp. (NYSE:IBM) traded up 0.12% during mid-day trading on Tuesday, hitting $155.06. 907,883 shares of the stock were exchanged. International Business Machines Corp. has a 52-week low of $116.90 and a 52-week high of $164.95. The company has a 50 day moving average price of $159.60 and a 200 day moving average price of $152.80. The firm has a market cap of $148.21 billion, a price-to-earnings ratio of 12.61 and a beta of 0.77.
International Business Machines Corp. (NYSE:IBM) last posted its quarterly earnings results on Monday, July 18th. The technology company reported $2.95 EPS for the quarter, topping the consensus estimate of $2.89 by $0.06. International Business Machines Corp. had a net margin of 14.86% and a return on equity of 88.92%. The company earned $20.20 billion during the quarter, compared to analysts’ expectations of $20.03 billion. During the same quarter in the previous year, the business posted $3.84 EPS. The firm’s revenue was down 2.8% on a year-over-year basis. On average, analysts anticipate that International Business Machines Corp. will post $13.51 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Saturday, September 10th. Stockholders of record on Wednesday, August 10th were issued a dividend of $1.40 per share. The ex-dividend date of this dividend was Monday, August 8th. This represents a $5.60 annualized dividend and a dividend yield of 3.62%. International Business Machines Corp.’s payout ratio is currently 45.53%.
In other news, insider Robert J. Picciano sold 1,922 shares of the stock in a transaction dated 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 directly owns 35,861 shares in the company, valued at approximately $5,707,636.76. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Robert J. Leblanc sold 15,708 shares of the stock in a transaction dated Tuesday, August 9th. The stock was sold at an average price of $162.25, for a total transaction of $2,548,623.00. Following the transaction, the insider now owns 61,374 shares in the company, valued at $9,957,931.50. The disclosure for this sale can be found here. Insiders own 0.08% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Sun Life Financial INC bought a new position in shares of International Business Machines Corp. during the first quarter valued at $45,284,000. Roble Belko & Company Inc raised its position in shares of 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 during the last quarter. Thomas J. Herzfeld Advisors Inc. bought a new position in shares of International Business Machines Corp. during the second quarter valued at $105,000. Cypress Capital Management LLC WY bought a new position in shares of International Business Machines Corp. during the second quarter valued at $107,000. Finally, Jackson Grant Investment Advisers Inc. raised its position in shares of 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 during the last quarter. Institutional investors and hedge funds own 57.63% of the company’s stock.
International Business Machines Corp. Company Profile
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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