International Business Machines Corporation (IBM) Is A Stock You Should Watch

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As of Wednesday close, International Business Machines Corporation’s (NYSE:IBM) stock was down -$0.35, moving down -0.23 percent to $148.75. The average number of shares traded per day over the past five days has been 4,562,680 shares. 4 times new highs have been achieved over the past 5 days, with a $4.23 gain in that time frame. In the last twenty days, the average volume was 4,687,355, while in the previous 50 days, it was 4,981,006.

Since last month, IBM stock rose 11.90%. Shares of the company fell to $129.85 on 10/24/22, the lowest level in the past month. A 52-week high of $149.35 was reached on 11/23/22 after having rallying from a 52-week low of $114.56. Since the beginning of this year, IBM’s stock price has risen by 11.29% or $15.09, and marked a new high 11 times. However, the stock has declined by -0.40% since its 52-week high.


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IBM stock investors should be aware that International Business Machines Corporation (IBM) stock had its last reported insider trading activity 3 days ago on Nov 22. Del Bene Robert F, the VP, Controller of the company, disposed of 3,000 shares for $148.36 on Nov 22. It resulted in a $445,088 divestment by the insider. FARR DAVID N added 1,000 shares at an average price of $125.00 on Sep 15. The insider now owns 1,000 shares following the transaction. On Jun 02, VP, Controller Del Bene Robert F sold 1,600 shares at $139.04 apiece. The transaction was valued at $222,465.

Valuation Metrics

Right now, International Business Machines Corporation (IBM) has a P/E ratio of about 91.82. The stock’s beta is 0.88. Besides these, the trailing price-to-sales (P/S) ratio of 2.20, the price-to-book (PB) ratio of 6.70, and the price-to-cash flow ratio of 78.37 may also be considered.

The latest dividend of $1.65 per share was paid out, remained unchanged from last year’s $1.65. On Tuesday April 26 2022, a $0.01 dividend increase was announced.

Financial Health

In the three months ended September 29, International Business Machines Corporation’s quick ratio stood at 0.90, while its current ratio was 1.00, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 2.24, and the total debt-to-equity ratio was 2.53. On the profitability front, the trailing twelve-month gross margin is 53.80% percent. In the year ended September 29, operating margins totaled 1.20%. Based on annual data, IBM earned $31.49 billion in gross profit and brought in $57.35 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 6.50%. Return on equity (ROE) for the past 12 months was 6.50%.

In International Business Machines Corporation’s quarter-end financial report for September 29, it reported total debt of $44.94 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. IBM’s revenue fell -24.89% to $15.54 billion during the quarter, while net income inched up to $14.11 billion. While analysts expected International Business Machines Corporation to report $1.77 quarterly earnings, the actual figure was $1.81 per share, beating the consensus estimate by 2.30%. During the quarter, the company generated $2.59 billion in EBITDA. The liabilities of International Business Machines Corporation were 105.7 billion at the end of its most recent quarter ended September 29, and its total debt was $53.83 billion. The value of shareholders’ equity is $904.13 million.

Technical Picture

This quick technical analysis looks at International Business Machines Corporation’s (IBM) price momentum. With a historical volatility rate of 10.66%, the RSI 9-day stood at 76.66% on 23 November.

With respect to its five-day moving average, the current International Business Machines Corporation price is up by +2.93% percent or $4.23. At present, IBM shares trade +10.18% above its 20-day simple moving average and +8.09% percent above its 100-day simple moving average. However, the stock is currently trading approximately +16.49% above its SMA50 and +8.56% above its SMA200.

Stochastic coefficient K was 92.00% and Stochastic coefficient D was 93.51%, while ATR was 2.68. Given the Stochastic reading of 88.98% for the 14-day period, the RSI (14) reading has been calculated as 73.59%. As of today, the MACD Oscillator reading stands at 2.12, while the 14-day reading stands at 4.72.

Analyst Ratings

UBS reiterated its a Sell rating on International Business Machines Corporation (NYSE: IBM) in a note to investors. The analysts firm has however raised their price target to $111, representing a possible -32.81% increase in the stock price. International Business Machines Corporation (IBM) has been rated Hold by analysts. According to 2 brokerage firms, IBM is a sell, and 10 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate International Business Machines Corporation stock as buy, with 6 recommending it as overweight.

With a median target price of $140.00, the current consensus forecast for the stock is $111.00 – $160.00. Based on these forecasts, analysts predict International Business Machines Corporation (IBM) will achieve an average price target of $139.62.

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