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

Shares of International Business Machines Corporation (NYSE:IBM) traded down 2.6% on Monday . The company traded as low as $222.55 and last traded at $223.6930. 6,659,289 shares traded hands during mid-day trading, an increase of 12% from the average session volume of 5,957,455 shares. The stock had previously closed at $229.76.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Argus set a $360.00 price objective on International Business Machines in a research note on Friday, January 30th. Royal Bank Of Canada cut their price objective on International Business Machines from $330.00 to $300.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 6th. Wedbush reaffirmed an “outperform” rating and issued a $320.00 price target on shares of International Business Machines in a research report on Wednesday, May 6th. Weiss Ratings lowered International Business Machines from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, May 4th. Finally, Erste Group Bank cut International Business Machines from a “buy” rating to a “hold” rating in a research report on Wednesday, February 18th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $294.41.

International Business Machines Stock Performance

The firm has a fifty day simple moving average of $243.05 and a 200 day simple moving average of $277.83. 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 $210.25 billion, a price-to-earnings ratio of 19.78, a PEG ratio of 2.38 and a beta of 0.58.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines’s quarterly revenue was up 9.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.60 earnings per share. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.4 earnings per share for the current year.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be given a dividend of $1.69 per share. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 3.0%. International Business Machines’s dividend payout ratio (DPR) is presently 59.77%.

Insiders Place Their Bets

In other International Business Machines news, Director Michael Miebach purchased 434 shares of the company’s stock in a transaction that occurred on Wednesday, February 25th. The stock was purchased at an average price of $233.33 per share, with a total value of $101,265.22. Following the completion of the transaction, the director directly owned 434 shares of the company’s stock, valued at approximately $101,265.22. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.27% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Basepoint Wealth LLC acquired a new position in International Business Machines in the fourth quarter worth about $25,000. Family CFO Inc acquired a new position in International Business Machines in the fourth quarter worth about $25,000. Joseph Group Capital Management acquired a new position in International Business Machines in the fourth quarter worth about $28,000. Cornerstone Financial Management LLC acquired a new position in International Business Machines in the fourth quarter worth about $28,000. Finally, Mountain Hill Investment Partners Corp. acquired a new position in International Business Machines in the third quarter worth about $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Company Profile

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.