ValuEngine Downgrades IBM (IBM) to Sell

ValuEngine downgraded shares of IBM (NYSE:IBM) from a hold rating to a sell rating in a report released on Thursday, April 18th, ValuEngine reports.

IBM has been the topic of several other research reports. Citigroup boosted their price target on IBM from $130.00 to $140.00 and gave the company a neutral rating in a research note on Wednesday, April 17th. BMO Capital Markets boosted their price target on IBM from $147.00 to $155.00 and gave the company a market perform rating in a research note on Wednesday, April 17th. They noted that the move was a valuation call. Zacks Investment Research lowered IBM from a hold rating to a sell rating in a research note on Monday, April 15th. Credit Suisse Group initiated coverage on IBM in a research note on Thursday, April 11th. They issued an outperform rating and a $173.00 price objective on the stock. Finally, Wells Fargo & Co reissued a market perform rating and issued a $140.00 price objective (down previously from $155.00) on shares of IBM in a research note on Wednesday, January 23rd. Two analysts have rated the stock with a sell rating, twelve have given a hold rating and seven have given a buy rating to the company’s stock. The company has an average rating of Hold and a consensus target price of $155.72.

NYSE IBM traded down $0.02 during trading on Thursday, hitting $135.32. The company’s stock had a trading volume of 3,977,586 shares, compared to its average volume of 3,977,767. The company has a quick ratio of 1.31, a current ratio of 1.36 and a debt-to-equity ratio of 2.39. The company has a market cap of $120.00 billion, a P/E ratio of 9.80, a P/E/G ratio of 2.46 and a beta of 1.23. IBM has a 52 week low of $105.94 and a 52 week high of $154.36.

IBM (NYSE:IBM) last issued its quarterly earnings results on Tuesday, April 16th. The technology company reported $2.25 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.22 by $0.03. The company had revenue of $18.18 billion for the quarter, compared to the consensus estimate of $18.53 billion. IBM had a return on equity of 68.76% and a net margin of 10.98%. The company’s revenue for the quarter was down 4.7% on a year-over-year basis. During the same period in the previous year, the business posted $2.45 EPS. Sell-side analysts expect that IBM will post 13.89 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 10th. Stockholders of record on Friday, May 10th will be given a dividend of $1.62 per share. This is a boost from IBM’s previous quarterly dividend of $1.57. This represents a $6.48 annualized dividend and a dividend yield of 4.79%. The ex-dividend date of this dividend is Thursday, May 9th. IBM’s dividend payout ratio is currently 46.92%.

In other news, insider Erich Clementi sold 13,000 shares of the company’s stock in a transaction dated Friday, March 1st. The stock was sold at an average price of $139.01, for a total transaction of $1,807,130.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Diane J. Gherson sold 1,989 shares of the company’s stock in a transaction dated Wednesday, February 13th. The stock was sold at an average price of $137.25, for a total value of $272,990.25. The disclosure for this sale can be found here. Insiders have sold 15,113 shares of company stock valued at $2,096,923 over the last ninety days. 0.19% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Swedbank boosted its position in IBM by 21.1% during the first quarter. Swedbank now owns 1,404,199 shares of the technology company’s stock valued at $198,132,000 after purchasing an additional 244,949 shares during the last quarter. OLD Republic International Corp lifted its position in shares of IBM by 14.4% in the first quarter. OLD Republic International Corp now owns 572,000 shares of the technology company’s stock valued at $80,709,000 after buying an additional 72,000 shares during the last quarter. MUFG Securities EMEA plc lifted its position in shares of IBM by 44.8% in the fourth quarter. MUFG Securities EMEA plc now owns 216,780 shares of the technology company’s stock valued at $24,641,000 after buying an additional 67,055 shares during the last quarter. Oak Associates Ltd. OH lifted its position in shares of IBM by 1.3% in the fourth quarter. Oak Associates Ltd. OH now owns 184,274 shares of the technology company’s stock valued at $20,946,000 after buying an additional 2,403 shares during the last quarter. Finally, Azimuth Capital Management LLC lifted its position in shares of IBM by 10.3% in the first quarter. Azimuth Capital Management LLC now owns 160,424 shares of the technology company’s stock valued at $22,636,000 after buying an additional 14,930 shares during the last quarter. 55.65% of the stock is owned by hedge funds and other institutional investors.

About IBM

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.

Further Reading: Debt-To-Equity Ratio

To view ValuEngine’s full report, visit ValuEngine’s official website.

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