A number of firms have modified their ratings and price targets on shares of IBM (NYSE: IBM) recently:

  • 1/24/2019 – IBM was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “IBM reported modest fourth quarter results. While the bottom line surpassed the Zacks Consensus Estimate, the top line matched the same. Moreover, revenues decreased on a year over year basis, primarily due to currency fluctuation and headwinds from IBM Z product cycle. Softness in Systems revenues and technology & cloud platforms remain a concern. Stiff competition does not bode well for Storage hardware segment. We believe the strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud is a headwind. Additionally, ballooning debt levels have been troubling IBM over time. However, IBM’s improving position in the hosted cloud, security and analytics bodes well for investors. RedHat acquisition aimed at enhancing hybrid cloud platform is likely to pave the way for IBM's growth prospects. “
  • 1/23/2019 – IBM had its “outperform” rating reaffirmed by analysts at Royal Bank of Canada. They now have a $160.00 price target on the stock, up previously from $155.00.
  • 1/23/2019 – IBM had its price target raised by analysts at BMO Capital Markets to $147.00. They now have a “market perform” rating on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 1/23/2019 – IBM had its “market perform” rating reaffirmed by analysts at Wells Fargo & Co. They now have a $140.00 price target on the stock, down previously from $155.00.
  • 1/23/2019 – IBM had its “hold” rating reaffirmed by analysts at Wedbush. They now have a $131.00 price target on the stock.
  • 1/23/2019 – IBM had its price target raised by analysts at Citigroup Inc from $125.00 to $130.00. They now have a “buy” rating on the stock.
  • 1/16/2019 – IBM had its “hold” rating reaffirmed by analysts at Cantor Fitzgerald. They now have a $140.00 price target on the stock. They wrote, “: We maintain our Neutral rating on IBM and our 12-month PT of $140*. It is almost Red Hat time, with the acquisition expected to close in 2H19 (Click here for note). We believe investor focus this quarter will be on whatever information it can gleam about Red Hat and recent divestitures, performance of the Strategic Imperatives, margin momentum, and 2019 outlook. IBM’s faster-growing Strategic Imperatives’ (SI) revenue growth decelerated in 3Q18, as all segments moderated. The SI has been offsetting continued declines in the rest of the business, and if IBM can maintain double-digit growth in these revenues, the inflection point for a return to sustained overall growth could be near.””
  • 1/15/2019 – IBM had its price target raised by analysts at Stifel Nicolaus from $145.00 to $178.00. They now have a “buy” rating on the stock.
  • 12/19/2018 – IBM was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “IBM is benefiting from operating efficiency, cost cutting and lower share count. Moreover, IBM’s improving position in the hosted cloud, security and analytics bodes well for investors. IBM is witnessing growth in industry verticals like health, key areas of analytics and security. Solid adoption of Watson Health and broad-based growth in Payer, Provider, Imaging and Life Sciences domains, is notable. RedHat acquisition aimed at enhancing hybrid cloud platform is likely to pave the way for IBM's growth prospects. However, softness in cognitive solutions and technology & cloud platforms remain a concern. Stiff competition does not bode well for Storage hardware segment. We believe the strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud is a headwind.”
  • 12/18/2018 – IBM was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $134.00 price target on the stock. According to Zacks, “IBM is benefiting from operating efficiency, cost cutting and lower share count. Moreover, IBM’s improving position in the hosted cloud, security and analytics bodes well for investors. IBM is witnessing growth in industry verticals like health, key areas of analytics and security. Solid adoption of Watson Health and broad-based growth in Payer, Provider, Imaging and Life Sciences domains, is notable. RedHat acquisition aimed at enhancing hybrid cloud platform is likely to pave the way for IBM's growth prospects. However, bleak results in cognitive solutions and technology & cloud platforms remain a concern. Stiff competition does not bode well for Storage hardware segment. We believe the strategic imperatives will take some more time to report meaningful growth and offset weakness in the traditional business. IBM’s ongoing heavily time-consuming business model transition to cloud is a headwind.”
  • 12/17/2018 – IBM had its “outperform” rating reaffirmed by analysts at Royal Bank of Canada. They now have a $167.00 price target on the stock, down previously from $175.00.

IBM stock opened at $133.71 on Monday. IBM has a 52 week low of $105.94 and a 52 week high of $162.11. The company has a debt-to-equity ratio of 2.10, a current ratio of 1.29 and a quick ratio of 1.24. The company has a market capitalization of $121.51 billion, a P/E ratio of 9.68, a PEG ratio of 2.37 and a beta of 1.25.

IBM (NYSE:IBM) last posted its quarterly earnings data on Tuesday, January 22nd. The technology company reported $4.87 EPS for the quarter, topping analysts’ consensus estimates of $4.82 by $0.05. IBM had a net margin of 10.97% and a return on equity of 68.61%. The firm had revenue of $21.76 billion during the quarter, compared to analyst estimates of $21.79 billion. During the same quarter last year, the business posted $5.14 EPS. The company’s revenue was down 3.5% on a year-over-year basis. Equities analysts forecast that IBM will post 13.92 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Saturday, March 9th. Investors of record on Friday, February 8th will be paid a $1.57 dividend. This represents a $6.28 dividend on an annualized basis and a yield of 4.70%. The ex-dividend date of this dividend is Thursday, February 7th. IBM’s dividend payout ratio is 45.47%.

In related news, insider Diane J. Gherson sold 5,754 shares of the firm’s stock in a transaction that occurred on Wednesday, February 6th. The shares were sold at an average price of $135.67, for a total value of $780,645.18. Following the completion of the transaction, the insider now owns 23,117 shares of the company’s stock, valued at approximately $3,136,283.39. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.17% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the business. Sharkey Howes & Javer lifted its position in IBM by 75.9% in the 4th quarter. Sharkey Howes & Javer now owns 721 shares of the technology company’s stock worth $82,000 after buying an additional 311 shares in the last quarter. Lathrop Investment Management Corp purchased a new stake in IBM in the 3rd quarter worth approximately $215,000. Paloma Partners Management Co lifted its position in IBM by 127.4% in the 3rd quarter. Paloma Partners Management Co now owns 1,453 shares of the technology company’s stock worth $220,000 after buying an additional 6,757 shares in the last quarter. Harvest Fund Management Co. Ltd purchased a new stake in IBM in the 3rd quarter worth approximately $233,000. Finally, Sonora Investment Management LLC lifted its position in IBM by 166.2% in the 4th quarter. Sonora Investment Management LLC now owns 1,637 shares of the technology company’s stock worth $186,000 after buying an additional 1,022 shares in the last quarter. Institutional investors own 61.97% of the company’s stock.

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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