International Business Machines (NYSE:IBM) Trading Down 2.6% – Here’s Why

International Business Machines Co. (NYSE:IBM)’s stock price dropped 2.6% during mid-day trading on Tuesday . The company traded as low as $246.02 and last traded at $246.31. Approximately 779,489 shares were traded during mid-day trading, a decline of 80% from the average daily volume of 3,874,623 shares. The stock had previously closed at $252.97.

Analyst Upgrades and Downgrades

IBM has been the subject of a number of analyst reports. UBS Group boosted their price objective on shares of International Business Machines from $150.00 to $160.00 and gave the company a “sell” rating in a research report on Tuesday, January 14th. JPMorgan Chase & Co. upped their target price on International Business Machines from $233.00 to $244.00 and gave the company a “neutral” rating in a research note on Thursday, January 30th. Wedbush initiated coverage on International Business Machines in a research note on Monday, February 3rd. They issued an “outperform” rating on the stock. StockNews.com downgraded shares of International Business Machines from a “buy” rating to a “hold” rating in a research note on Saturday, March 15th. Finally, Jefferies Financial Group raised their target price on shares of International Business Machines from $245.00 to $270.00 and gave the stock a “hold” rating in a research report on Thursday, January 30th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, International Business Machines presently has a consensus rating of “Hold” and a consensus target price of $231.44.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.00 and a current ratio of 1.04. The stock has a fifty day simple moving average of $245.88 and a two-hundred day simple moving average of $229.33. The stock has a market cap of $234.17 billion, a PE ratio of 39.40, a PEG ratio of 5.81 and a beta of 0.74.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, January 29th. The technology company reported $3.92 earnings per share for the quarter, beating the consensus estimate of $3.77 by $0.15. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. Equities analysts anticipate that International Business Machines Co. will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 10th. Investors of record on Monday, February 10th were issued a $1.67 dividend. This represents a $6.68 dividend on an annualized basis and a yield of 2.65%. The ex-dividend date of this dividend was Monday, February 10th. International Business Machines’s dividend payout ratio is currently 104.21%.

Insider Activity

In other news, SVP Robert David Thomas sold 26,543 shares of the stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the transaction, the senior vice president now owns 45,007 shares of the company’s stock, valued at approximately $11,387,221.07. This trade represents a 37.10 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.18% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of IBM. United Bank lifted its position in shares of International Business Machines by 53.3% in the 3rd quarter. United Bank now owns 5,628 shares of the technology company’s stock worth $1,244,000 after buying an additional 1,956 shares during the last quarter. Quest Partners LLC lifted its holdings in International Business Machines by 23,700.0% in the third quarter. Quest Partners LLC now owns 238 shares of the technology company’s stock worth $53,000 after acquiring an additional 237 shares during the last quarter. Pathstone Holdings LLC boosted its stake in International Business Machines by 3.2% in the third quarter. Pathstone Holdings LLC now owns 115,093 shares of the technology company’s stock valued at $25,445,000 after acquiring an additional 3,558 shares during the period. Meeder Asset Management Inc. grew its holdings in shares of International Business Machines by 40.9% during the third quarter. Meeder Asset Management Inc. now owns 572 shares of the technology company’s stock valued at $126,000 after purchasing an additional 166 shares during the last quarter. Finally, Thompson Davis & CO. Inc. acquired a new stake in shares of International Business Machines during the 3rd quarter worth approximately $229,000. Institutional investors own 58.96% of the company’s stock.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.