International Business Machines (NYSE:IBM) Shares Gap Down on Analyst Downgrade

International Business Machines Co. (NYSE:IBM) shares gapped down before the market opened on Thursday after Morgan Stanley lowered their price target on the stock from $237.00 to $233.00. The stock had previously closed at $245.48, but opened at $231.18. Morgan Stanley currently has an equal weight rating on the stock. International Business Machines shares last traded at $231.15, with a volume of 5,791,240 shares.

Several other research firms have also issued reports on IBM. The Goldman Sachs Group reissued a “buy” rating on shares of International Business Machines in a research report on Wednesday, February 5th. JPMorgan Chase & Co. raised their target price on International Business Machines from $233.00 to $244.00 and gave the stock a “neutral” rating in a research report on Thursday, January 30th. Oppenheimer began coverage on International Business Machines in a research note on Tuesday, February 11th. They issued an “outperform” rating and a $320.00 price target on the stock. BMO Capital Markets reiterated a “market perform” rating on shares of International Business Machines in a research note on Wednesday. Finally, Wedbush reaffirmed an “outperform” rating and issued a $300.00 target price on shares of International Business Machines in a report on Thursday. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, International Business Machines currently has a consensus rating of “Hold” and a consensus price target of $242.41.

Insider Activity

In related news, SVP Robert David Thomas sold 26,543 shares of the firm’s stock in a transaction dated Monday, March 3rd. The stock was sold at an average price of $253.01, for a total value of $6,715,644.43. Following the transaction, the senior vice president now owns 45,007 shares in the company, valued at $11,387,221.07. This trade represents a 37.10 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.18% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. JBR Co Financial Management Inc boosted its stake in International Business Machines by 0.6% in the fourth quarter. JBR Co Financial Management Inc now owns 6,390 shares of the technology company’s stock valued at $1,405,000 after acquiring an additional 40 shares during the last quarter. Wealth Dimensions Group Ltd. boosted its position in shares of International Business Machines by 1.0% in the 4th quarter. Wealth Dimensions Group Ltd. now owns 3,972 shares of the technology company’s stock worth $873,000 after purchasing an additional 40 shares during the last quarter. Pallas Capital Advisors LLC grew its stake in shares of International Business Machines by 0.9% during the first quarter. Pallas Capital Advisors LLC now owns 4,805 shares of the technology company’s stock worth $1,195,000 after purchasing an additional 42 shares during the period. Schechter Investment Advisors LLC lifted its stake in International Business Machines by 0.7% in the fourth quarter. Schechter Investment Advisors LLC now owns 6,351 shares of the technology company’s stock valued at $1,396,000 after buying an additional 43 shares during the period. Finally, Titleist Asset Management LLC boosted its holdings in International Business Machines by 3.1% during the fourth quarter. Titleist Asset Management LLC now owns 1,431 shares of the technology company’s stock worth $315,000 after buying an additional 43 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Price 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 company has a market capitalization of $215.59 billion, a price-to-earnings ratio of 36.27, a price-to-earnings-growth ratio of 5.81 and a beta of 0.67. The company has a 50-day moving average price of $245.34 and a 200-day moving average price of $233.91.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, April 23rd. The technology company reported $1.60 EPS for the quarter, beating the consensus estimate of $1.42 by $0.18. The firm had revenue of $14.54 billion during the quarter, compared to the consensus estimate of $14.41 billion. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. On average, equities research analysts expect 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. Shareholders of record on Monday, February 10th were issued a $1.67 dividend. The ex-dividend date was Monday, February 10th. This represents a $6.68 annualized dividend and a dividend yield of 2.87%. International Business Machines’s dividend payout ratio (DPR) is currently 104.21%.

International Business Machines Company Profile

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.