International Business Machines (NYSE:IBM) Shares Down 1.1% – What’s Next?

International Business Machines Corporation (NYSE:IBM) dropped 1.1% during mid-day trading on Friday . The stock traded as low as $267.68 and last traded at $271.77. Approximately 5,094,060 shares traded hands during trading, a decline of 28% from the average daily volume of 7,122,593 shares. The stock had previously closed at $274.85.

Analyst Upgrades and Downgrades

IBM has been the subject of several analyst reports. Needham & Company LLC initiated coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating for the company. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price objective for the company in a research report on Friday, April 24th. Oppenheimer reduced their price objective on International Business Machines from $380.00 to $320.00 and set an “outperform” rating for the company in a research report on Thursday, April 16th. HSBC upgraded International Business Machines from a “reduce” rating to a “hold” rating and upped their target price for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. Finally, Jefferies Financial Group cut their target price on International Business Machines from $370.00 to $320.00 and set a “buy” rating for the company in a research report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $304.17.

International Business Machines Price Performance

The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The firm has a market capitalization of $255.43 billion, a price-to-earnings ratio of 24.03, a P/E/G ratio of 2.82 and a beta of 0.67. The stock’s 50 day moving average price is $249.46 and its two-hundred day moving average price is $270.33.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period in the prior year, the business posted $1.60 earnings per share. Analysts anticipate that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a dividend of $1.69 per share. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date was Friday, May 8th. International Business Machines’s dividend payout ratio is 59.77%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Brighton Jones LLC increased its position in International Business Machines by 12.4% during the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after buying an additional 2,323 shares during the period. Sivia Capital Partners LLC grew its holdings in International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock worth $571,000 after acquiring an additional 186 shares in the last quarter. Jump Financial LLC bought a new stake in shares of International Business Machines in the 2nd quarter valued at approximately $211,000. Ieq Capital LLC increased its holdings in shares of International Business Machines by 2.2% in the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock valued at $11,383,000 after acquiring an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP increased its holdings in shares of International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock valued at $300,000 after acquiring an additional 106 shares during the last quarter. Institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

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.