International Business Machines (NYSE:IBM) Sees Large Volume Increase – Still a Buy?

International Business Machines Corporation (NYSE:IBM) saw unusually-high trading volume on Thursday . Approximately 5,306,239 shares were traded during mid-day trading, a decline of 11% from the previous session’s volume of 5,955,395 shares.The stock last traded at $237.0680 and had previously closed at $225.00.

International Business Machines News Roundup

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: IBM and the U.S. Commerce Department announced a plan to launch America’s first purpose-built quantum foundry, with IBM set to receive the largest share of federal support and contribute matching capital. IBM and U.S. Department of Commerce Announce America’s First Purpose-Built Quantum Foundry, Supported by Proposed $1 Billion CHIPS Award
• Positive Sentiment: Analysts and media reports say the quantum funding package is a major new catalyst for IBM, helping drive strong share-price momentum and lifting sentiment around the stock’s long-term growth prospects. IBM shares extend rally as Wedbush calls US quantum investment a “new catalyst”
• Positive Sentiment: IBM’s push into quantum computing and related hot tech segments is being viewed as evidence the company is expanding beyond legacy businesses into higher-growth opportunities. Why IBM Stock Was Rocking it This Week
• Neutral Sentiment: Some coverage highlights that IBM’s valuation, debt load, and execution risk will matter as the company commits capital to the quantum foundry project. IBM’s US$1b Anderon Quantum Foundry Puts Valuation And Debt In Focus

Analysts Set New Price Targets

IBM has been the topic of a number of research analyst reports. HSBC upgraded International Business Machines from a “reduce” rating to a “hold” rating and boosted their price target for the company from $218.00 to $231.00 in a report on Tuesday, April 28th. Weiss Ratings downgraded International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday. JPMorgan Chase & Co. reduced their price target on International Business Machines from $317.00 to $283.00 and set a “neutral” rating on the stock in a report on Wednesday, March 18th. Morgan Stanley boosted their price target on International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a report on Thursday, April 23rd. Finally, Jefferies Financial Group reduced their price target on International Business Machines from $370.00 to $320.00 and set a “buy” rating on the stock in a report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $294.41.

International Business Machines Price Performance

The business has a fifty day simple moving average of $238.70 and a two-hundred day simple moving average of $272.44. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The stock has a market cap of $238.62 billion, a PE ratio of 22.45, a P/E/G ratio of 2.62 and a beta of 0.58.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same quarter in the prior year, the business earned $1.60 EPS. The business’s revenue for the quarter was up 9.5% on a year-over-year basis. Research analysts forecast that International Business Machines Corporation will post 12.4 earnings per share for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be issued a dividend of $1.69 per share. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. International Business Machines’s dividend payout ratio (DPR) is currently 59.77%.

Insider Buying and Selling at International Business Machines

In other news, Director Michael Miebach bought 434 shares of International Business Machines stock in a transaction on Wednesday, February 25th. The shares were purchased at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the acquisition, the director owned 434 shares of the company’s stock, valued at approximately $101,265.22. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in shares of International Business Machines by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock worth $28,796,390,000 after purchasing an additional 1,439,824 shares in the last quarter. State Street Corp boosted its position in shares of International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock worth $16,290,452,000 after purchasing an additional 518,321 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of International Business Machines by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after purchasing an additional 336,069 shares in the last quarter. Capital World Investors boosted its position in shares of International Business Machines by 29.2% in the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after purchasing an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE boosted its position in shares of International Business Machines by 7.0% in the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after purchasing an additional 1,049,602 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM’s principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.