Traders Sell IBM (IBM) on Strength (IBM)
Investors sold shares of IBM (NYSE:IBM) on strength during trading on Thursday. $284.45 million flowed into the stock on the tick-up and $371.98 million flowed out of the stock on the tick-down, for a money net flow of $87.53 million out of the stock. Of all equities tracked, IBM had the 0th highest net out-flow for the day. IBM traded up $0.11 for the day and closed at $123.38
IBM has been the topic of a number of research analyst reports. Societe Generale set a $149.00 price target on shares of IBM and gave the stock a “sell” rating in a report on Thursday, July 19th. Wedbush reissued a “neutral” rating and issued a $185.00 price target on shares of IBM in a report on Thursday, July 19th. Zacks Investment Research raised shares of IBM from a “sell” rating to a “hold” rating in a report on Thursday, October 18th. JPMorgan Chase & Co. reissued a “$149.24” rating and issued a $157.00 price target on shares of IBM in a report on Thursday, July 19th. Finally, BMO Capital Markets decreased their price target on shares of IBM from $175.00 to $172.00 and set a “$149.24” rating on the stock in a report on Thursday, July 19th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and ten have given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $165.02.
The company has a debt-to-equity ratio of 1.81, a quick ratio of 1.26 and a current ratio of 1.31. The firm has a market cap of $113.45 billion, a P/E ratio of 8.95, a price-to-earnings-growth ratio of 1.82 and a beta of 1.18.
The company also recently declared a quarterly dividend, which will be paid on Monday, December 10th. Shareholders of record on Friday, November 9th will be issued a $1.57 dividend. This represents a $6.28 dividend on an annualized basis and a yield of 5.08%. The ex-dividend date of this dividend is Thursday, November 8th. IBM’s dividend payout ratio (DPR) is presently 45.51%.
IBM announced that its Board of Directors has initiated a share repurchase program on Tuesday, October 30th that permits the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization permits the technology company to buy up to 3.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.
In other news, Chairman Virginia M. Rometty purchased 8,500 shares of the business’s stock in a transaction on Friday, November 2nd. The shares were acquired at an average price of $117.51 per share, with a total value of $998,835.00. Following the acquisition, the chairman now directly owns 11,368 shares in the company, valued at $1,335,853.68. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Sidney Taurel purchased 4,311 shares of the business’s stock in a transaction on Wednesday, October 31st. The stock was purchased at an average cost of $115.02 per share, for a total transaction of $495,851.22. Following the acquisition, the director now owns 19,987 shares in the company, valued at $2,298,904.74. The disclosure for this purchase can be found here. 0.17% of the stock is owned by company insiders.
Institutional investors have recently made changes to their positions in the business. Schroder Investment Management Group lifted its position in shares of IBM by 24.1% in the 2nd quarter. Schroder Investment Management Group now owns 1,854,109 shares of the technology company’s stock worth $259,649,000 after purchasing an additional 359,868 shares during the period. Swedbank lifted its position in IBM by 214.6% during the 3rd quarter. Swedbank now owns 1,123,724 shares of the technology company’s stock valued at $169,918,000 after acquiring an additional 766,478 shares during the period. Fort Washington Investment Advisors Inc. OH lifted its position in IBM by 1.7% during the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 555,127 shares of the technology company’s stock valued at $83,941,000 after acquiring an additional 9,215 shares during the period. Aperio Group LLC lifted its position in IBM by 9.0% during the 3rd quarter. Aperio Group LLC now owns 454,228 shares of the technology company’s stock valued at $68,684,000 after acquiring an additional 37,393 shares during the period. Finally, Nisa Investment Advisors LLC lifted its position in IBM by 3.6% during the 3rd quarter. Nisa Investment Advisors LLC now owns 320,951 shares of the technology company’s stock valued at $48,531,000 after acquiring an additional 11,129 shares during the period. 55.33% of the stock is currently owned by institutional investors and hedge funds.
About IBM (NYSE:IBM)
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.
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