Investors Buy IBM (IBM) on Weakness After Analyst Downgrade

Investors bought shares of IBM (NYSE:IBM) on weakness during trading on Thursday after Argus downgraded the stock from a buy rating to a hold rating. $330.68 million flowed into the stock on the tick-up and $288.50 million flowed out of the stock on the tick-down, for a money net flow of $42.18 million into the stock. Of all equities tracked, IBM had the 23rd highest net in-flow for the day. IBM traded down ($3.50) for the day and closed at $130.55

Several other research firms 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 set a “sell” rating and a $150.00 price target for the company. JPMorgan Chase & Co. restated a “$149.24” rating and set 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 stock a “sell” rating in a report on Thursday, July 19th. Finally, Wedbush restated a “neutral” rating and set a $185.00 price target on shares of IBM in a report on Thursday, July 19th. Three investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and ten have given a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $167.39.

In other news, insider Diane J. Gherson sold 11,451 shares of IBM 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 sale, the insider now owns 19,114 shares in the company, valued at approximately $2,779,557.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.17% of the company’s stock.

Several large investors have recently added to or reduced their stakes in IBM. Berkshire Asset Management LLC PA grew its position 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 valued at $3,129,000 after purchasing an additional 481 shares during the period. Grassi Investment Management boosted its holdings 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 acquiring an additional 965 shares during the last quarter. Viking Fund Management LLC boosted its holdings 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 acquiring an additional 1,000 shares during the last quarter. Coastline Trust Co boosted its holdings 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 acquiring an additional 2,475 shares during the last quarter. Finally, Argus Investors Counsel Inc. boosted its holdings 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 acquiring an additional 4,349 shares during the last quarter. Institutional investors own 55.39% of the company’s stock.

The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.27 and a current ratio of 1.32. The firm has a market capitalization of $138.02 billion, a PE ratio of 9.45, a price-to-earnings-growth ratio of 2.20 and a beta of 0.87.

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

About IBM (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.

Read More: Market Capitalization – What it Means for Investors

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