International Business Machines (NYSE:IBM) Stock Price Up 1.2% – What’s Next?

International Business Machines Co. (NYSE:IBM) shares rose 1.2% on Tuesday . The company traded as high as $262.15 and last traded at $261.85. Approximately 1,001,082 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 4,202,524 shares. The stock had previously closed at $258.63.

Analysts Set New Price Targets

Several research analysts have issued reports on IBM shares. JPMorgan Chase & Co. upped their price target on International Business Machines from $233.00 to $244.00 and gave the company a “neutral” rating in a report on Thursday, January 30th. Citigroup reissued an “outperform” rating on shares of International Business Machines in a research note on Saturday, May 10th. Wedbush restated an “outperform” rating and set a $300.00 price target on shares of International Business Machines in a report on Wednesday, May 7th. Morgan Stanley decreased their price objective on shares of International Business Machines from $237.00 to $233.00 and set an “equal weight” rating for the company in a report on Thursday, April 24th. Finally, BMO Capital Markets reiterated a “market perform” rating on shares of International Business Machines in a report on Wednesday, April 23rd. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $249.06.

International Business Machines Price Performance

The stock’s 50-day moving average price is $245.26 and its 200 day moving average price is $238.85. The firm has a market cap of $244.99 billion, a price-to-earnings ratio of 41.12, a price-to-earnings-growth ratio of 5.81 and a beta of 0.64. The company has a quick ratio of 1.00, a current ratio of 1.04 and a debt-to-equity ratio of 1.82.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 23rd. The technology company reported $1.60 EPS for the quarter, beating analysts’ consensus estimates of $1.42 by $0.18. The business had revenue of $14.54 billion during the quarter, compared to analyst estimates of $14.41 billion. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. The firm’s revenue for the quarter was up .5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.68 earnings per share. Equities research analysts predict that International Business Machines Co. will post 10.78 earnings per share for the current year.

International Business Machines Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Friday, May 9th will be given a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.55%. This is a positive change from International Business Machines’s previous quarterly dividend of $1.67. International Business Machines’s dividend payout ratio is currently 115.66%.

Insider Activity

In related news, SVP Robert David Thomas sold 26,543 shares of the stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $253.01, for a total value of $6,715,644.43. Following the completion of the transaction, the senior vice president now owns 45,007 shares of the company’s stock, valued at $11,387,221.07. This represents a 37.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in IBM. Capital World Investors raised its stake in shares of International Business Machines by 413.5% in the fourth quarter. Capital World Investors now owns 11,984,609 shares of the technology company’s stock valued at $2,634,577,000 after acquiring an additional 9,650,534 shares during the last quarter. Norges Bank acquired a new stake in International Business Machines during the 4th quarter worth $1,236,176,000. GAMMA Investing LLC grew its holdings in International Business Machines by 29,564.2% during the 1st quarter. GAMMA Investing LLC now owns 4,399,790 shares of the technology company’s stock worth $10,940,520,000 after acquiring an additional 4,384,958 shares during the period. GQG Partners LLC acquired a new position in shares of International Business Machines in the 1st quarter valued at $1,040,057,000. Finally, Nuveen LLC acquired a new position in shares of International Business Machines in the 1st quarter valued at $960,386,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.