International Business Machines (NYSE:IBM) Sets New 1-Year High on Analyst Upgrade

International Business Machines Co. (NYSE:IBM)’s share price hit a new 52-week high on Friday after Royal Bank of Canada raised their price target on the stock from $276.00 to $285.00. Royal Bank of Canada currently has an outperform rating on the stock. International Business Machines traded as high as $267.43 and last traded at $266.55, with a volume of 4853284 shares trading hands. The stock had previously closed at $257.82.

Several other research firms have also commented on IBM. Bank of America upped their target price on International Business Machines from $260.00 to $270.00 and gave the company a “buy” rating in a report on Thursday, January 30th. Citigroup reiterated an “outperform” rating on shares of International Business Machines in a research report on Saturday, May 10th. Morgan Stanley reduced their price objective on International Business Machines from $237.00 to $233.00 and set an “equal weight” rating for the company in a research report on Thursday, April 24th. Wedbush reiterated an “outperform” rating and set a $300.00 price objective on shares of International Business Machines in a research report on Wednesday, May 7th. Finally, Erste Group Bank upgraded International Business Machines from a “hold” rating to a “strong-buy” rating in a research report on Monday, March 17th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $249.06.

Insider Activity

In other news, SVP Robert David Thomas sold 26,543 shares of the stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the completion of the sale, the senior vice president now owns 45,007 shares in the company, valued at approximately $11,387,221.07. This represents a 37.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.18% of the company’s stock.

Institutional Trading of International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Compass Financial Services Inc acquired a new stake in International Business Machines during the 4th quarter valued at $26,000. Christopher J. Hasenberg Inc acquired a new stake in International Business Machines during the 1st quarter valued at $27,000. SSA Swiss Advisors AG acquired a new stake in International Business Machines during the 1st quarter valued at $28,000. Vision Financial Markets LLC acquired a new stake in International Business Machines during the 4th quarter valued at $31,000. Finally, Dagco Inc. acquired a new stake in International Business Machines during the 1st quarter valued at $31,000. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Stock Performance

The firm’s 50 day simple moving average is $243.74 and its 200-day simple moving average is $236.48. 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 $247.87 billion, a price-to-earnings ratio of 41.61, a P/E/G ratio of 5.81 and a beta of 0.64.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, April 23rd. The technology company reported $1.60 earnings per share for the quarter, topping analysts’ consensus estimates of $1.42 by $0.18. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. The business had revenue of $14.54 billion for the quarter, compared to the consensus estimate of $14.41 billion. During the same period in the prior year, the business posted $1.68 earnings per share. International Business Machines’s revenue for the quarter was up .5% compared to the same quarter last year. Analysts expect that International Business Machines Co. will post 10.78 EPS for the current year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Friday, May 9th will be paid a $1.68 dividend. This is an increase from International Business Machines’s previous quarterly dividend of $1.67. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.52%. International Business Machines’s dividend payout ratio is 115.66%.

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.