ValuEngine Upgrades IBM (IBM) to “Sell”

ValuEngine upgraded shares of IBM (NYSE:IBM) from a strong sell rating to a sell rating in a report issued on Saturday morning.

A number of other equities analysts have also commented on IBM. Zacks Investment Research raised IBM from a sell rating to a hold rating in a report on Thursday, October 18th. Cantor Fitzgerald cut their price target on IBM from $152.00 to $140.00 and set a neutral rating for the company in a report on Wednesday, October 17th. BMO Capital Markets cut their price target on IBM from $172.00 to $164.00 and set a market perform rating for the company in a report on Wednesday, October 17th. Wedbush cut their price target on IBM from $185.00 to $165.00 and set a neutral rating for the company in a report on Thursday, October 18th. Finally, Goldman Sachs Group reaffirmed a neutral rating and issued a $155.00 price target on shares of IBM in a report on Monday, October 29th. Three analysts have rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the stock. The stock currently has an average rating of Hold and an average target price of $165.02.

IBM stock opened at $125.31 on Friday. IBM has a one year low of $114.09 and a one year high of $171.13. The company has a debt-to-equity ratio of 1.81, a current ratio of 1.31 and a quick ratio of 1.26. The firm has a market capitalization of $112.94 billion, a PE ratio of 9.08, a P/E/G ratio of 1.81 and a beta of 1.20.

IBM (NYSE:IBM) last posted its quarterly earnings results on Tuesday, October 16th. The technology company reported $3.42 EPS for the quarter, topping the Zacks’ consensus estimate of $3.40 by $0.02. IBM had a return on equity of 69.98% and a net margin of 7.12%. The firm had revenue of $18.76 billion during the quarter, compared to analyst estimates of $19.04 billion. During the same period last year, the company earned $3.30 earnings per share. The business’s revenue for the quarter was down 2.1% on a year-over-year basis. Analysts anticipate that IBM will post 13.81 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 10th. Investors of record on Friday, November 9th will be paid a dividend of $1.57 per share. This represents a $6.28 annualized dividend and a yield of 5.01%. The ex-dividend date of this dividend is Thursday, November 8th. IBM’s dividend payout ratio is 45.51%.

IBM announced that its board has initiated a stock buyback plan on Tuesday, October 30th that allows the company to buyback $4.00 billion in shares. This buyback authorization allows the technology company to buy up to 3.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

In other IBM news, Director Sidney Taurel acquired 4,311 shares of the company’s stock in a transaction that occurred on Wednesday, October 31st. The stock was bought at an average price of $115.02 per share, with a total value of $495,851.22. Following the completion of the purchase, the director now owns 19,987 shares of the company’s stock, valued at $2,298,904.74. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Virginia M. Rometty acquired 8,500 shares of the company’s stock in a transaction that occurred on Friday, November 2nd. The shares were acquired at an average cost of $117.51 per share, with a total value of $998,835.00. Following the purchase, the chairman now directly owns 11,368 shares of the company’s stock, valued at approximately $1,335,853.68. The disclosure for this purchase can be found here. 0.17% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. Tocqueville Asset Management L.P. raised its position in IBM by 4.3% during the second quarter. Tocqueville Asset Management L.P. now owns 205,622 shares of the technology company’s stock valued at $28,725,000 after purchasing an additional 8,571 shares in the last quarter. Schroder Investment Management Group raised its position in IBM by 24.1% during the second quarter. Schroder Investment Management Group now owns 1,854,109 shares of the technology company’s stock valued at $259,649,000 after purchasing an additional 359,868 shares in the last quarter. Viking Fund Management LLC raised its position in IBM by 3.8% during the third quarter. Viking Fund Management LLC now owns 27,000 shares of the technology company’s stock valued at $4,083,000 after purchasing an additional 1,000 shares in the last quarter. Swedbank raised its position in IBM by 214.6% during the third quarter. Swedbank now owns 1,123,724 shares of the technology company’s stock valued at $169,918,000 after purchasing an additional 766,478 shares in the last quarter. Finally, Berkshire Asset Management LLC PA raised its position in IBM by 2.4% during the third quarter. Berkshire Asset Management LLC PA now owns 20,690 shares of the technology company’s stock valued at $3,129,000 after purchasing an additional 481 shares in the last quarter. Institutional investors and hedge funds own 56.48% 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 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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To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for IBM (NYSE:IBM)

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