International Business Machines (NYSE:IBM) Stock Price Down 1.5% – Should You Sell?

International Business Machines Corporation (NYSE:IBM) dropped 1.5% during trading on Monday . The stock traded as low as $264.80 and last traded at $268.1930. Approximately 7,058,024 shares changed hands during trading, a decline of 1% from the average daily volume of 7,127,987 shares. The stock had previously closed at $272.24.

Analyst Upgrades and Downgrades

IBM has been the topic of several analyst reports. Royal Bank Of Canada reiterated an “outperform” rating on shares of International Business Machines in a report on Thursday, May 28th. UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price objective for the company in a research report on Wednesday, February 25th. Barclays began coverage on International Business Machines in a research report on Monday, June 1st. They issued an “overweight” rating and a $350.00 price objective for the company. Wedbush set a $350.00 price objective on International Business Machines in a research report on Tuesday, June 2nd. Finally, Erste Group Bank lowered International Business Machines from a “buy” rating to a “hold” rating in a research report on Wednesday, February 18th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $304.17.

International Business Machines Stock Performance

The stock has a market capitalization of $252.07 billion, a PE ratio of 23.71, a price-to-earnings-growth ratio of 2.82 and a beta of 0.66. The firm’s fifty day moving average is $250.02 and its 200-day moving average is $270.10. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.10. The firm had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines’s revenue was up 9.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.60 EPS. As a group, research analysts anticipate that International Business Machines Corporation will post 12.38 earnings per share for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were paid a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Friday, May 8th. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio is currently 59.77%.

Hedge Funds Weigh In On International Business Machines

Hedge funds and other institutional investors have recently bought and sold shares of the company. Shariaportfolio Inc. purchased a new stake in International Business Machines during the first quarter worth about $278,000. FAS Wealth Partners Inc. increased its stake in International Business Machines by 1.1% during the first quarter. FAS Wealth Partners Inc. now owns 7,598 shares of the technology company’s stock worth $1,842,000 after purchasing an additional 86 shares during the period. Pine Valley Investments Ltd Liability Co increased its stake in International Business Machines by 1.1% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 20,341 shares of the technology company’s stock worth $4,930,000 after purchasing an additional 225 shares during the period. Farmers National Bank increased its stake in International Business Machines by 13.9% during the first quarter. Farmers National Bank now owns 28,786 shares of the technology company’s stock worth $6,977,000 after purchasing an additional 3,518 shares during the period. Finally, Blue Edge Capital LLC increased its stake in International Business Machines by 22.9% during the first quarter. Blue Edge Capital LLC now owns 8,316 shares of the technology company’s stock worth $2,016,000 after purchasing an additional 1,551 shares during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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.