International Business Machines (NYSE:IBM) Shares Down 2.6% – Should You Sell?

International Business Machines Co. (NYSE:IBM)’s stock price dropped 2.6% on Tuesday . The company traded as low as $246.02 and last traded at $246.31. Approximately 779,489 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 3,874,623 shares. The stock had previously closed at $252.97.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on IBM. BMO Capital Markets boosted their target price on shares of International Business Machines from $260.00 to $280.00 and gave the company a “market perform” rating in a research report on Thursday, January 30th. JPMorgan Chase & Co. boosted their price objective on International Business Machines from $233.00 to $244.00 and gave the company a “neutral” rating in a report on Thursday, January 30th. Jefferies Financial Group raised their target price on International Business Machines from $245.00 to $270.00 and gave the stock a “hold” rating in a report on Thursday, January 30th. UBS Group boosted their price target on International Business Machines from $150.00 to $160.00 and gave the company a “sell” rating in a report on Tuesday, January 14th. Finally, StockNews.com cut shares of International Business Machines from a “buy” rating to a “hold” rating in a research note on Saturday. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, International Business Machines currently has an average rating of “Hold” and a consensus price target of $231.44.

International Business Machines Trading Down 2.8 %

The company has a market capitalization of $227.97 billion, a PE ratio of 38.38, a price-to-earnings-growth ratio of 5.81 and a beta of 0.74. The company has a 50 day simple moving average of $244.84 and a 200 day simple moving average of $228.85. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.00 and a current ratio of 1.04.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, January 29th. The technology company reported $3.92 earnings per share for the quarter, beating analysts’ consensus estimates of $3.77 by $0.15. International Business Machines had a return on equity of 38.99% and a net margin of 9.60%. Analysts anticipate that International Business Machines Co. will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 10th. Stockholders of record on Monday, February 10th were given a $1.67 dividend. The ex-dividend date was Monday, February 10th. This represents a $6.68 dividend on an annualized basis and a dividend yield of 2.72%. International Business Machines’s dividend payout ratio (DPR) is presently 104.21%.

Insider Activity at International Business Machines

In other International Business Machines news, SVP Robert David Thomas sold 26,543 shares of International Business Machines stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the transaction, the senior vice president now directly owns 45,007 shares of the company’s stock, valued at $11,387,221.07. The trade was a 37.10 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.07% of the company’s stock.

Institutional Trading of International Business Machines

Several hedge funds have recently made changes to their positions in the company. Compass Financial Services Inc purchased a new stake in International Business Machines in the fourth quarter valued at $26,000. Vision Financial Markets LLC purchased a new stake in International Business Machines in the 4th quarter valued at about $31,000. Avondale Wealth Management raised its holdings in International Business Machines by 56.0% in the 4th quarter. Avondale Wealth Management now owns 156 shares of the technology company’s stock valued at $34,000 after buying an additional 56 shares during the period. Valued Wealth Advisors LLC boosted its stake in International Business Machines by 134.3% during the fourth quarter. Valued Wealth Advisors LLC now owns 157 shares of the technology company’s stock worth $35,000 after buying an additional 90 shares during the period. Finally, Rialto Wealth Management LLC acquired a new stake in shares of International Business Machines during the fourth quarter valued at about $35,000. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.