IBM (IBM) Shares Gap Down After Insider Selling

IBM (NYSE:IBM) gapped down before the market opened on Thursday after an insider sold shares in the company. The stock had previously closed at $139.09, but opened at $136.32. IBM shares last traded at $133.19, with a volume of 4378111 shares traded.

Specifically, insider Diane J. Gherson sold 5,754 shares of IBM stock in a transaction dated Wednesday, February 6th. The stock was sold at an average price of $135.67, for a total value of $780,645.18. Following the sale, the insider now directly owns 23,117 shares of the company’s stock, valued at $3,136,283.39. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.17% of the company’s stock.

Several research analysts recently commented on IBM shares. UBS Group set a $180.00 price target on IBM and gave the stock a “buy” rating in a research report on Wednesday, October 10th. Cantor Fitzgerald dropped their price target on IBM from $152.00 to $140.00 and set a “neutral” rating for the company in a research report on Wednesday, October 17th. BMO Capital Markets dropped their price target on IBM from $172.00 to $164.00 and set a “market perform” rating for the company in a research report on Wednesday, October 17th. Morgan Stanley dropped their price target on IBM from $185.00 to $168.00 and set an “overweight” rating for the company in a research report on Wednesday, October 17th. Finally, Bank of America restated a “buy” rating and set a $200.00 target price on shares of IBM in a research report on Wednesday, October 17th. Four analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $154.56.

The stock has a market cap of $123.89 billion, a PE ratio of 9.64, a P/E/G ratio of 2.40 and a beta of 1.25. The company has a debt-to-equity ratio of 2.10, a current ratio of 1.29 and a quick ratio of 1.24.

IBM (NYSE:IBM) last announced its earnings results on Tuesday, January 22nd. The technology company reported $4.87 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $4.82 by $0.05. The business had revenue of $21.76 billion during the quarter, compared to analyst estimates of $21.79 billion. IBM had a return on equity of 68.61% and a net margin of 10.97%. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $5.14 earnings per share. Analysts forecast that IBM will post 13.92 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Saturday, March 9th. Investors of record on Friday, February 8th will be issued a $1.57 dividend. The ex-dividend date is Thursday, February 7th. This represents a $6.28 dividend on an annualized basis and a dividend yield of 4.72%. IBM’s payout ratio is 45.47%.

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

Several hedge funds and other institutional investors have recently made changes to their positions in IBM. Swedbank raised its stake in IBM by 214.6% in the third quarter. Swedbank now owns 1,123,724 shares of the technology company’s stock worth $169,918,000 after buying an additional 766,478 shares in the last quarter. Berkshire Asset Management LLC PA raised its stake in IBM by 2.4% in the third quarter. Berkshire Asset Management LLC PA now owns 20,690 shares of the technology company’s stock worth $3,129,000 after buying an additional 481 shares in the last quarter. Nisa Investment Advisors LLC raised its stake in IBM by 3.6% in the third quarter. Nisa Investment Advisors LLC now owns 320,951 shares of the technology company’s stock worth $48,531,000 after buying an additional 11,129 shares in the last quarter. Adams Asset Advisors LLC raised its stake in IBM by 14.0% in the third quarter. Adams Asset Advisors LLC now owns 48,705 shares of the technology company’s stock worth $7,364,000 after buying an additional 5,970 shares in the last quarter. Finally, Aperio Group LLC raised its stake in IBM by 9.0% in the third quarter. Aperio Group LLC now owns 454,228 shares of the technology company’s stock worth $68,684,000 after buying an additional 37,393 shares in the last quarter. Hedge funds and other institutional investors own 56.09% of the company’s stock.

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IBM Company Profile (NYSE:IBM)

International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a computing platform that interacts in language, processes big data, and learns from interactions with people and computers. This segment also offers data and analytics solutions, including analytics and data management platforms, cloud data services, enterprise social software, talent management solutions, and tailored industry solutions; and transaction processing software that runs mission-critical systems in banking, airlines, and retail industries.

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