The stock of International Business Machines Corporation (NYSE:IBM) increased by $0.67 on Monday to finish at $146.02, up 0.46 percent. The last five days have seen an average of 3,247,660 shares of common stock traded. 7 times new highs were reached in the current year, with a gain of $5.13. The average number of shares traded over the last 20 days was 3,768,185, while the average volume over the last 50 days totaled 4,288,446.
IBM stock appreciated 1.79% since last month. On 08/18/23, the company’s shares reached a one-month low of $139.76. The stock touched a high of $153.21 on 01/17/23, after rallying from a low of $115.54 in 52 weeks. The price of IBM stock has risen by 3.64% or $5.13 this year, reaching a new high 7 times. Still, the stock price is down -4.69% from the 52-week high.
Insider Transactions
IBM stock investors should be aware that International Business Machines Corporation (IBM) stock had its last reported insider trading activity 209 days ago on Feb 01. On Feb 01, Sr. VP and CFO KAVANAUGH JAMES J sold 38,519 shares at $133.73 each. This transaction resulted in the insider making $5,151,038. On Nov 22, Del Bene Robert F sold 3,000 shares at a price of US$148.36. After the transaction, the insider now owns 14,553 shares. Director FARR DAVID N had earlier bought 1,000 shares on Sep 15 for $125.00 a share. The transaction was completed for $125,000.
Valuation Metrics
International Business Machines Corporation (IBM) has a trailing price-to-earnings (P/E) ratio of 71.19. Beta for the stock is 0.84. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.17, the price-to-book (PB) ratio of 5.98, and the price-to-cash flow ratio of 12.76.
Company paid $1.66 per share in dividends, remained unchanged from $1.66 last year. A $0.01 dividend increase was reported on Tuesday April 25 2023.
Financial Health
For the three months ended June 29, International Business Machines Corporation’s quick ratio was 1.00, while its current ratio was 1.10, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.28, and the total debt to equity ratio is 2.59. As far as profitability goes, gross margin for the trailing twelve months is 54.60% percent. International Business Machines Corporation’s EBITDA margin for the year ended June 29 was 20.76%, whereas its operating margin stood at 3.10% for the same period. Based on annual data, it had gross profit of $32.69 billion and revenue of $60.53 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. IBM’s return on assets (ROA) during the last 12 months has been 1.60%. There was a 2.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 9.40%.
Earnings Surprise
According to International Business Machines Corporation’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $15.47 billion, while revenues fell by -0.39% to $14.25 billion. It was predicted that International Business Machines Corporation’s quarterly earnings would be $2.02, but it ended up being $1.86, beating the consensus by 8.60%. EBITDA was $2.99 billion for the quarter. At the end of International Business Machines Corporation’s most recent quarter ended June 29, its liabilities totaled 109.94 billion, while its total debt was $60.3 billion. Equity owned by shareholders amounts to $911.01 million.
Technical Picture
Here’s a quick look at International Business Machines Corporation’s (IBM) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 71.05%, suggesting the stock is Overbought, with a 10.78% historical volatility rate.
The stochastic %K and %D were 77.80% and 63.04% respectively, while the average true range (ATR) was 1.77. Based on the 14-day stochastic reading of 89.68%, the RSI (14) reading is 67.18%. On the 9-day MACD Oscillator, the stock is at 2.22, and the 14-day reading is at 2.30.
Analyst Ratings
In a note to investors, BMO Capital Markets maintained its a Market perform rating on International Business Machines Corporation (NYSE: IBM). However, the firm raised their price target to $150, indicating a possible decrease of -0.7% in the stock price. Analysts have assigned International Business Machines Corporation (IBM) an Hold rating. IBM is a stock that is recommended for selling by 1 brokerage firm, while 12 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 5 others recommend it as a buy.
What is IBM’s price target for the next 12 months?
The current consensus forecast for the stock is between $110.00 and $175.00, with a median target price of $145.00. In analyzing these forecasts, the average price target given by analysts for International Business Machines Corporation (IBM) is $145.73.
