International Business Machines (NYSE:IBM) Shares Down 1.2% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s share price traded down 1.2% during trading on Tuesday . The company traded as low as $230.20 and last traded at $232.02. 4,541,110 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 7,743,483 shares. The stock had previously closed at $234.77.

Analyst Upgrades and Downgrades

IBM has been the topic of a number of research analyst reports. The Goldman Sachs Group set a $270.00 price target on International Business Machines in a report on Thursday, July 23rd. Roth Capital reissued a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Weiss Ratings lowered shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th. Susquehanna lifted their price objective on International Business Machines from $225.00 to $235.00 and gave the company a “neutral” rating in a research report on Monday, August 31st. Finally, Needham & Company LLC assumed coverage on shares of International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating on the stock. Sixteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, International Business Machines currently has a consensus rating of “Moderate Buy” and a consensus target price of $265.90.

International Business Machines Stock Down 1.2%

The stock has a market cap of $218.59 billion, a P/E ratio of 20.59, a PEG ratio of 2.24 and a beta of 0.71. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The business has a 50-day simple moving average of $240.81 and a 200-day simple moving average of $246.86.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. During the same period in the previous year, the company earned $2.80 earnings per share. International Business Machines’s revenue for the quarter was up 1.1% on a year-over-year basis. Analysts expect that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio is 59.98%.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Basepoint Wealth LLC acquired a new position in International Business Machines during the 4th quarter valued at $25,000. Portus Wealth Advisors LLC acquired a new stake in International Business Machines in the 1st quarter worth $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines during the 2nd quarter worth about $27,000. Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines in the 4th quarter worth approximately $28,000. Finally, Hara Capital LLC bought a new position in International Business Machines in the second quarter worth $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.