International Business Machines Corporation (NYSE:IBM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “IBM’s focus on “Strategic Imperatives” is anticipated to drive top-line growth in the long haul. However, third-quarter revenue guidance reflects negative impact from seasonality, which is anticipated to be partially neutralized by higher contributions from the new Mainframe z14 product and services contracts. Despite sluggish revenue growth projections in the near term, IBM maintained 2017 earnings guidance suggesting improving strength in cloud, mobile, security and social products as well as cost savings. The company’s expanding footprint in the rapidly growing blockchain market is positive in our view. Moreover, IBM’s solid patent portfolio is a key catalyst. On a year-to-date basis, the company has outperformed the industry it belongs to. However, intensifying competition in most of the markets remains a major concern. Notably, estimates have been going down ahead of the company's Q3 earnings release.”

A number of other equities analysts have also issued reports on the stock. UBS AG reiterated a “hold” rating and issued a $152.00 target price on shares of International Business Machines Corporation in a research report on Tuesday, September 5th. BidaskClub raised shares of International Business Machines Corporation from a “strong sell” rating to a “sell” rating in a report on Saturday, August 26th. Morgan Stanley reissued an “overweight” rating and issued a $192.00 price target on shares of International Business Machines Corporation in a report on Wednesday, August 23rd. Vetr raised shares of International Business Machines Corporation from a “hold” rating to a “buy” rating and set a $150.68 price target for the company in a report on Monday, July 31st. Finally, Drexel Hamilton reissued a “buy” rating and issued a $200.00 price target on shares of International Business Machines Corporation in a report on Tuesday, July 18th. Eight equities research analysts have rated the stock with a sell rating, sixteen have given a hold rating and nine have given a buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $157.12.

Shares of International Business Machines Corporation (IBM) traded down 0.215% during mid-day trading on Tuesday, hitting $146.515. 2,468,091 shares of the company traded hands. The firm has a 50-day moving average price of $145.27 and a 200 day moving average price of $151.70. International Business Machines Corporation has a 52-week low of $139.13 and a 52-week high of $182.79. The firm has a market cap of $136.54 billion, a price-to-earnings ratio of 12.160 and a beta of 0.95.

International Business Machines Corporation (NYSE:IBM) last announced its earnings results on Tuesday, July 18th. The technology company reported $2.97 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $2.74 by $0.23. The firm had revenue of $19.29 billion during the quarter, compared to analyst estimates of $19.45 billion. International Business Machines Corporation had a net margin of 14.58% and a return on equity of 71.53%. International Business Machines Corporation’s revenue was down 4.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.95 EPS. Equities research analysts anticipate that International Business Machines Corporation will post $13.75 EPS for the current fiscal year.

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A number of large investors have recently added to or reduced their stakes in IBM. Waldron LP increased its holdings in International Business Machines Corporation by 98.2% in the first quarter. Waldron LP now owns 4,141 shares of the technology company’s stock worth $715,000 after buying an additional 2,052 shares during the last quarter. Profund Advisors LLC increased its holdings in International Business Machines Corporation by 13.7% in the first quarter. Profund Advisors LLC now owns 30,956 shares of the technology company’s stock worth $5,391,000 after buying an additional 3,733 shares during the last quarter. Acadian Asset Management LLC increased its holdings in International Business Machines Corporation by 28.9% in the first quarter. Acadian Asset Management LLC now owns 37,487 shares of the technology company’s stock worth $6,527,000 after buying an additional 8,399 shares during the last quarter. Headinvest LLC increased its holdings in International Business Machines Corporation by 4.8% in the first quarter. Headinvest LLC now owns 2,943 shares of the technology company’s stock worth $512,000 after buying an additional 135 shares during the last quarter. Finally, Glen Harbor Capital Management LLC increased its holdings in International Business Machines Corporation by 54.4% in the first quarter. Glen Harbor Capital Management LLC now owns 82,858 shares of the technology company’s stock worth $14,429,000 after buying an additional 29,206 shares during the last quarter. Hedge funds and other institutional investors own 57.84% of the company’s stock.

International Business Machines Corporation Company Profile

International Business Machines Corporation (IBM) is a technology company. The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing. The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems.

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