According to Zacks, “IBM provides advanced information technology solutions, including computer systems, software, storage systems and microelectronics. Softness in Systems revenues and technology & cloud platforms remain a concern. Stiff competition does not bode well for Storage hardware segment. We believe the strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud is a headwind. Additionally, ballooning debt levels have been troubling IBM over time. However, IBM’s improving position in the hosted cloud, security and analytics bodes well for investors. RedHat acquisition aimed at enhancing hybrid cloud platform is likely to pave the way for IBM's growth prospects.”
IBM has been the topic of several other research reports. Cantor Fitzgerald reaffirmed a hold rating and issued a $140.00 target price on shares of IBM in a report on Wednesday, January 16th. ValuEngine raised shares of IBM from a sell rating to a hold rating in a report on Wednesday, February 13th. Royal Bank of Canada reaffirmed an outperform rating and issued a $167.00 target price (down previously from $175.00) on shares of IBM in a report on Monday, December 17th. Citigroup upped their target price on shares of IBM from $125.00 to $130.00 and gave the stock a buy rating in a report on Wednesday, January 23rd. Finally, Stifel Nicolaus upped their target price on shares of IBM from $145.00 to $178.00 and gave the stock a buy rating in a report on Tuesday, January 15th. Four research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have issued a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $155.72.
IBM opened at $140.33 on Monday. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.24 and a current ratio of 1.29. IBM has a twelve month low of $105.94 and a twelve month high of $154.36. The stock has a market capitalization of $124.43 billion, a PE ratio of 10.16, a PEG ratio of 2.55 and a beta of 1.25.
IBM (NYSE:IBM) last posted its earnings results on Tuesday, April 16th. The technology company reported $2.25 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $2.22 by $0.03. IBM had a net margin of 10.97% and a return on equity of 68.61%. The business had revenue of $18.18 billion for the quarter, compared to analyst estimates of $18.53 billion. During the same quarter in the prior year, the firm earned $2.45 EPS. The firm’s quarterly revenue was down 4.7% compared to the same quarter last year. Analysts expect that IBM will post 13.9 earnings per share for the current year.
In other IBM news, insider Erich Clementi sold 13,000 shares of the stock in a transaction dated Friday, March 1st. The shares were sold at an average price of $139.01, for a total transaction of $1,807,130.00. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Diane J. Gherson sold 1,989 shares of the stock in a transaction dated Wednesday, February 13th. The stock was sold at an average price of $137.25, for a total transaction of $272,990.25. The disclosure for this sale can be found here. In the last three months, insiders have sold 20,867 shares of company stock worth $2,877,569. Insiders own 0.19% of the company’s stock.
A number of large investors have recently modified their holdings of the business. Paloma Partners Management Co boosted its stake in shares of IBM by 127.4% in the 3rd quarter. Paloma Partners Management Co now owns 1,453 shares of the technology company’s stock valued at $220,000 after purchasing an additional 6,757 shares during the last quarter. Glenmede Trust Co. NA boosted its stake in shares of IBM by 9.1% in the 3rd quarter. Glenmede Trust Co. NA now owns 456,696 shares of the technology company’s stock valued at $69,056,000 after purchasing an additional 38,181 shares during the last quarter. Albion Financial Group UT boosted its stake in shares of IBM by 1.5% in the 3rd quarter. Albion Financial Group UT now owns 18,471 shares of the technology company’s stock valued at $2,793,000 after purchasing an additional 281 shares during the last quarter. Cozad Asset Management Inc. boosted its stake in shares of IBM by 39.2% in the 4th quarter. Cozad Asset Management Inc. now owns 3,171 shares of the technology company’s stock valued at $360,000 after purchasing an additional 893 shares during the last quarter. Finally, Edmp Inc. boosted its stake in shares of IBM by 2.3% in the 4th quarter. Edmp Inc. now owns 11,032 shares of the technology company’s stock valued at $1,254,000 after purchasing an additional 243 shares during the last quarter. 55.58% of the stock is currently owned by hedge funds and other institutional investors.
IBM Company Profile
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers a portfolio of enterprise artificial intelligence platforms, such as analytics and data management platforms, cloud data services, talent management, and industry solutions primarily under the Watson Platform, Watson Health, and Watson Internet of Things names.
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