International Business Machines (NYSE:IBM) Shares Down 1.6% – Here’s Why

International Business Machines Corporation (NYSE:IBM) shares traded down 1.6% on Tuesday . The stock traded as low as $254.65 and last traded at $258.25. 4,922,950 shares changed hands during mid-day trading, a decline of 9% from the average session volume of 5,407,202 shares. The stock had previously closed at $262.38.

Analyst Upgrades and Downgrades

IBM has been the topic of several recent research reports. Erste Group Bank upgraded International Business Machines from a “hold” rating to a “buy” rating in a research report on Friday, December 5th. JPMorgan Chase & Co. upped their price objective on International Business Machines from $312.00 to $317.00 and gave the stock a “neutral” rating in a research report on Thursday, January 29th. Bank of America upped their price target on shares of International Business Machines from $315.00 to $335.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Argus set a $360.00 price objective on shares of International Business Machines in a report on Friday, January 30th. Finally, BMO Capital Markets reaffirmed a “market perform” rating and set a $350.00 target price on shares of International Business Machines in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and an average target price of $330.07.

International Business Machines Stock Performance

The firm has a market cap of $241.39 billion, a P/E ratio of 22.68, a PEG ratio of 2.63 and a beta of 0.69. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 1.67. The company’s 50-day moving average is $298.30 and its two-hundred day moving average is $284.26.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, January 28th. The technology company reported $4.52 EPS for the quarter, beating the consensus estimate of $4.33 by $0.19. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The company had revenue of $19.69 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same quarter in the prior year, the company posted $3.92 earnings per share. The firm’s revenue for the quarter was up 12.2% on a year-over-year basis. As a group, equities analysts predict that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be issued a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Tuesday, February 10th. International Business Machines’s dividend payout ratio (DPR) is 60.27%.

Insiders Place Their Bets

In other International Business Machines news, Director David N. Farr bought 1,000 shares of the firm’s stock in a transaction dated Friday, January 30th. The stock was purchased at an average cost of $304.00 per share, with a total value of $304,000.00. Following the transaction, the director directly owned 9,258 shares in the company, valued at $2,814,432. This trade represents a 12.11% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.18% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently added to or reduced their stakes in the company. DV Equities LLC purchased a new stake in shares of International Business Machines in the fourth quarter worth about $390,000. J. Goldman & Co LP increased its holdings in International Business Machines by 1,197.8% during the 4th quarter. J. Goldman & Co LP now owns 72,480 shares of the technology company’s stock worth $21,469,000 after acquiring an additional 66,895 shares during the period. GAM Holding AG increased its holdings in International Business Machines by 1.0% during the 4th quarter. GAM Holding AG now owns 51,039 shares of the technology company’s stock worth $15,118,000 after acquiring an additional 486 shares during the period. Abel Hall LLC lifted its stake in International Business Machines by 141.5% in the 4th quarter. Abel Hall LLC now owns 3,120 shares of the technology company’s stock worth $924,000 after purchasing an additional 1,828 shares in the last quarter. Finally, EFG International AG bought a new position in International Business Machines in the 4th quarter valued at $2,394,000. 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.