International Business Machines Corp. (NYSE:IBM) saw a downside of -2.21% to close Tuesday at $143.24 after subtracting -$3.24 on the day. The 5-day average trading volume is 4,932,460 shares of the company’s common stock. It has gained $151.93 in the past week and touched a new high 1 time within the past 5 days. An average of 3,789,425 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,154,574.
IBM’s 1-month performance is -1.45% or -$2.11 on its low of $143.02 reached on 09/26/23. The company’s shares have touched a 52-week low of $115.54 and high of $153.21, with the stock’s rally to the 52-week high happening on 09/20/23. YTD, IBM has achieved 1.67% or $2.35 and has reached a new high 11 times. However, the current price is down -6.51% from the 52-week high price.
Insider Transactions
IBM stock investors last saw insider trading activity on Feb 01.KAVANAUGH JAMES J (Sr. VP and CFO) most recently sold 38,519 shares at $133.73 per share on Feb 01. This transaction cost the insider $5,151,038. VP, Controller, Del Bene Robert F, sold 3,000 shares at a price of $148.36 on Nov 22.
Valuation Metrics
IBM stock has a beta of 0.84. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.16 while the price-to-book (PB) in the most recent quarter is 5.88, with the price to cash flow ratio at 11.98.
International Business Machines Corp.’s quick ratio for the period ended June 30 was 0.98, with the current ratio over the same period at 1.03. As well, the company’s long term debt to equity for the quarter ending June 30 was 2.37, while the total debt to equity was 2.72.. In terms of profitability, the gross margin trailing 12 months is 53.43%. The trailing 12-month EBITDA margin is 20.76% while for the period ending June 30, International Business Machines Corp.’s operating margin was 13.45%. The firm’s gross profit as reported stood at $32.69 billion against revenue of $60.53 billion.
Earnings Surprise
For the quarterly period ending June 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 12.07% to $1.58 billion, while revenue of $927.0 million was 41.44% off the previous quarter. Analysts expected IBM to announce $2.01 per share in earnings in its latest quarter, but it posted $2.18, representing a 8.50% surprise. EBITDA for the quarter stood at more than $2.99 billion. IBM stock balance sheet for the quarter ending June 30 shows that total liabilities totaled 109.94 billion, with total debt at $60.3 billion. Shareholders hold equity totaling $911.01 million.
Let’s look briefly at International Business Machines Corp. (IBM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 26 September was 35.93% to suggest the stock is trending Neutral, with historical volatility in this time period at 20.26%.
The stock’s 5-day moving average is $146.77, reflecting a -2.24% or -$3.28 change from its current price. IBM is currently trading -1.90% above its 20-day SMA, +16.03% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +6.70% and SMA200 by-2.74%.
Stochastic %K and %D was 19.48% and 32.37% and the average true range (ATR) pointed at 2.08. The RSI (14) points at 42.23%, while the 14-day stochastic is at 2.47% with the period’s ATR at 1.96. The stock’s 9-day MACD Oscillator is pointing at -0.99 and -1.26 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for International Business Machines Corp. (NYSE: IBM), RBC Capital Mkts launched coverage with an Outperform rating. Analysts offering their rating for IBM stock have a consensus rating for the stock as Hold. Currently, 1 brokerage advisors rate IBM as a “sell,”, while 12 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 5 have offered a “buy” rating.
What is IBM’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $110.00 and a high of $188.00, with their median price target at $145.00. Looking at these predictions, the average price target given by analysts is for International Business Machines Corp. (IBM) stock is $147.47.
