IBM (NYSE:IBM)’s share price gapped up prior to trading on Thursday after BMO Capital Markets raised their price target on the stock to $147.00. The stock had previously closed at $134.41, but opened at $132.89. BMO Capital Markets currently has a market perform rating on the stock. IBM shares last traded at $131.89, with a volume of 3368691 shares trading hands.
Several other equities research analysts also recently issued reports on the company. Royal Bank of Canada reiterated an “outperform” rating and issued a $160.00 price objective (up previously from $155.00) on shares of IBM in a report on Wednesday. Citigroup boosted their price objective on IBM from $125.00 to $130.00 and gave the company a “buy” rating in a report on Wednesday. Wells Fargo & Co reiterated a “market perform” rating and issued a $140.00 price objective (down previously from $155.00) on shares of IBM in a report on Wednesday. Cantor Fitzgerald reiterated a “hold” rating and issued a $140.00 price objective on shares of IBM in a report on Wednesday, January 16th. Finally, Stifel Nicolaus boosted their price objective on IBM from $145.00 to $178.00 and gave the company a “buy” rating in a report on Tuesday, January 15th. Four research analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $154.56.
In other IBM news, Chairman Virginia M. Rometty acquired 8,500 shares of the stock in a transaction dated Friday, November 2nd. The stock was acquired at an average cost of $117.51 per share, with a total value of $998,835.00. Following the transaction, the chairman now owns 11,368 shares in the company, valued at approximately $1,335,853.68. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Sidney Taurel acquired 4,311 shares of the stock in a transaction dated Wednesday, October 31st. The shares were acquired at an average cost of $115.02 per share, with a total value of $495,851.22. Following the completion of the transaction, the director now owns 19,987 shares in the company, valued at approximately $2,298,904.74. The disclosure for this purchase can be found here. 0.17% of the stock is owned by corporate insiders.
Large investors have recently added to or reduced their stakes in the company. Lathrop Investment Management Corp acquired a new stake in shares of IBM in the 3rd quarter valued at about $215,000. Paloma Partners Management Co lifted its position in IBM by 127.4% during the 3rd quarter. Paloma Partners Management Co now owns 1,453 shares of the technology company’s stock worth $220,000 after acquiring an additional 6,757 shares during the period. Harvest Fund Management Co. Ltd acquired a new stake in IBM during the 3rd quarter worth approximately $233,000. Strategic Advisors LLC lifted its position in IBM by 31.3% during the 4th quarter. Strategic Advisors LLC now owns 2,705 shares of the technology company’s stock worth $307,000 after acquiring an additional 645 shares during the period. Finally, Cozad Asset Management Inc. lifted its position in IBM by 39.2% during the 4th quarter. Cozad Asset Management Inc. now owns 3,171 shares of the technology company’s stock worth $360,000 after acquiring an additional 893 shares during the period. 56.26% of the stock is owned by institutional investors and hedge funds.
The company has a quick ratio of 1.26, a current ratio of 1.31 and a debt-to-equity ratio of 1.81. The stock has a market capitalization of $111.35 billion, a price-to-earnings ratio of 9.53, a P/E/G ratio of 1.78 and a beta of 1.14.
IBM (NYSE:IBM) last posted its quarterly earnings data on Tuesday, January 22nd. The technology company reported $4.87 earnings per share for the quarter, topping analysts’ consensus estimates of $4.82 by $0.05. IBM had a return on equity of 66.78% and a net margin of 10.97%. The company had revenue of $21.76 billion during the quarter, compared to analysts’ expectations of $21.79 billion. During the same period last year, the firm earned $5.14 EPS. The firm’s revenue for the quarter was down 3.5% on a year-over-year basis. On average, research analysts predict that IBM will post 13.86 EPS for the current year.
IBM announced that its board has authorized a share repurchase program on Tuesday, October 30th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the technology company to purchase up to 3.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.
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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