IBM (IBM) Reaches New 1-Year Low After Analyst Downgrade

IBM (NYSE:IBM)’s share price hit a new 52-week low during mid-day trading on Wednesday after Argus downgraded the stock from a buy rating to a hold rating. The stock traded as low as $133.43 and last traded at $135.91, with a volume of 870361 shares trading hands. The stock had previously closed at $145.12.

Several other brokerages have also issued reports on IBM. Zacks Investment Research lowered shares of IBM from a “hold” rating to a “sell” rating in a report on Wednesday, October 3rd. Moffett Nathanson assumed coverage on shares of IBM in a report on Thursday, October 4th. They issued a “sell” rating and a $150.00 price target for the company. JPMorgan Chase & Co. reissued a “$149.24” rating and issued a $157.00 price target on shares of IBM in a report on Thursday, July 19th. Societe Generale set a $149.00 price target on shares of IBM and gave the company a “sell” rating in a report on Thursday, July 19th. Finally, Wedbush reissued a “neutral” rating and issued a $185.00 price target on shares of IBM in a report on Thursday, July 19th. Three research analysts have rated the stock with a sell rating, eleven have issued a hold rating and ten have assigned a buy rating to the company. IBM has a consensus rating of “Hold” and an average price target of $167.39.

In related news, insider Diane J. Gherson sold 11,451 shares of the company’s stock in a transaction on Friday, August 3rd. The shares were sold at an average price of $145.42, for a total value of $1,665,204.42. Following the completion of the transaction, the insider now directly owns 19,114 shares of the company’s stock, valued at approximately $2,779,557.88. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.17% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Berkshire Asset Management LLC PA boosted its stake in IBM by 2.4% in the 3rd quarter. Berkshire Asset Management LLC PA now owns 20,690 shares of the technology company’s stock worth $3,129,000 after purchasing an additional 481 shares during the period. Grassi Investment Management lifted its position in IBM by 2.0% during the 2nd quarter. Grassi Investment Management now owns 49,795 shares of the technology company’s stock worth $6,956,000 after buying an additional 965 shares in the last quarter. Viking Fund Management LLC lifted its position in IBM by 3.8% during the 3rd quarter. Viking Fund Management LLC now owns 27,000 shares of the technology company’s stock worth $4,083,000 after buying an additional 1,000 shares in the last quarter. Coastline Trust Co lifted its position in IBM by 14.7% during the 2nd quarter. Coastline Trust Co now owns 19,353 shares of the technology company’s stock worth $2,704,000 after buying an additional 2,475 shares in the last quarter. Finally, Argus Investors Counsel Inc. lifted its position in IBM by 18.8% during the 2nd quarter. Argus Investors Counsel Inc. now owns 27,425 shares of the technology company’s stock worth $3,831,000 after buying an additional 4,349 shares in the last quarter. 55.39% of the stock is owned by hedge funds and other institutional investors.

The company has a current ratio of 1.32, a quick ratio of 1.27 and a debt-to-equity ratio of 2.03. The stock has a market capitalization of $138.02 billion, a P/E ratio of 9.45, a PEG ratio of 2.20 and a beta of 0.87.

IBM (NYSE:IBM) last issued its quarterly earnings results on Tuesday, October 16th. The technology company reported $3.42 EPS for the quarter, topping the consensus estimate of $3.40 by $0.02. IBM had a net margin of 7.13% and a return on equity of 69.84%. The firm had revenue of $18.76 billion for the quarter, compared to analysts’ expectations of $19.04 billion. During the same period in the previous year, the firm posted $3.30 EPS. The company’s revenue for the quarter was down 2.1% on a year-over-year basis. As a group, equities analysts anticipate that IBM will post 13.82 EPS for the current year.

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 cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.

See Also: How are the companies in the S&P 500 selected?

Receive News & Ratings for IBM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for IBM and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply