Somewhat Critical Media Coverage Extremely Likely to Impact IBM (IBM) Stock Price
News coverage about IBM (NYSE:IBM) has trended somewhat negative recently, InfoTrie Sentiment Analysis reports. InfoTrie identifies positive and negative press coverage by analyzing more than six thousand news and blog sources in real-time. The firm ranks coverage of publicly-traded companies on a scale of -5 to 5, with scores nearest to five being the most favorable. IBM earned a coverage optimism score of -1.67 on their scale. InfoTrie also gave media coverage about the technology company an news buzz score of 10 out of 10, indicating that recent press coverage is extremely likely to have an effect on the company’s share price in the near future.
Here are some of the news articles that may have impacted IBM’s ranking:
- Red Hat’s Jim Whitehurst on the IBM Merger, SUSE and Ubuntu – ITPro Today (itprotoday.com)
- Keep Red Hat independent within IBM? Please, no! – TechRepublic (techrepublic.com)
- IBM announces cloud-style ‘tailored fit’ pricing models for Z mainframe – www.computing.co.uk (computing.co.uk)
- IBM Sells $20 Billion In Bonds To Fund Red Hat Acquisition – CRN (crn.com)
- Wall Street Edge: IBM’s Eye-Popping Dividend – Forbes (forbes.com)
Several research firms have commented on IBM. ValuEngine upgraded shares of IBM from a “sell” rating to a “hold” rating in a research note on Wednesday, May 1st. Credit Suisse Group began coverage on shares of IBM in a research note on Thursday, April 11th. They issued an “outperform” rating and a $173.00 price target for the company. UBS Group set a $160.00 price target on shares of IBM and gave the stock a “buy” rating in a research note on Wednesday, April 17th. BMO Capital Markets boosted their price target on shares of IBM to $147.00 and gave the stock a “market perform” rating in a research note on Wednesday, January 23rd. They noted that the move was a valuation call. Finally, Zacks Investment Research downgraded shares of IBM from a “hold” rating to a “sell” rating in a research note on Monday, April 15th. Two research analysts have rated the stock with a sell rating, twelve have given a hold rating and seven have assigned a buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $155.72.
IBM (NYSE:IBM) last issued its earnings results on Tuesday, April 16th. The technology company reported $2.25 EPS for the quarter, topping analysts’ consensus estimates of $2.22 by $0.03. The firm had revenue of $18.18 billion during the quarter, compared to the consensus estimate of $18.53 billion. IBM had a net margin of 10.98% and a return on equity of 68.76%. The company’s revenue was down 4.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.45 earnings per share. On average, sell-side analysts anticipate that IBM will post 13.89 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, June 10th. Investors of record on Friday, May 10th will be paid a dividend of $1.62 per share. The ex-dividend date is Thursday, May 9th. This represents a $6.48 dividend on an annualized basis and a dividend yield of 4.82%. This is an increase from IBM’s previous quarterly dividend of $1.57. IBM’s payout ratio is presently 46.92%.
In related news, insider Erich Clementi sold 13,000 shares of the business’s stock in a transaction on 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 filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.19% of the company’s stock.
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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