International Business Machines (NYSE:IBM) Trading 12.8% Higher on Better-Than-Expected Earnings

International Business Machines Co. (NYSE:IBM)’s stock price traded up 12.8% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $261.80 and last traded at $257.81. 7,278,615 shares changed hands during trading, an increase of 81% from the average session volume of 4,018,613 shares. The stock had previously closed at $228.63.

The technology company reported $3.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.77 by $0.15. International Business Machines had a net margin of 10.22% and a return on equity of 40.52%.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Shareholders of record on Monday, February 10th will be issued a $1.67 dividend. The ex-dividend date is Monday, February 10th. This represents a $6.68 annualized dividend and a yield of 2.60%. International Business Machines’s payout ratio is 97.23%.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on IBM. StockNews.com lowered shares of International Business Machines from a “buy” rating to a “hold” rating in a research note on Wednesday, November 20th. JPMorgan Chase & Co. raised their price objective on shares of International Business Machines from $227.00 to $233.00 and gave the company a “neutral” rating in a research report on Thursday, January 23rd. Sanford C. Bernstein raised their price objective on shares of International Business Machines from $210.00 to $215.00 and gave the company a “market perform” rating in a research note on Friday, January 3rd. Jefferies Financial Group lifted their price target on International Business Machines from $200.00 to $245.00 and gave the stock a “hold” rating in a research note on Monday, October 21st. Finally, DZ Bank cut International Business Machines from a “buy” rating to a “hold” rating and set a $215.00 price target for the company. in a report on Wednesday, October 2nd. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, International Business Machines currently has a consensus rating of “Hold” and an average target price of $221.13.

Insider Activity

In other news, SVP Nickle Jaclyn Lamoreaux sold 3,600 shares of International Business Machines stock in a transaction dated Friday, November 8th. The stock was sold at an average price of $215.20, for a total transaction of $774,720.00. Following the completion of the sale, the senior vice president now directly owns 25,390 shares in the company, valued at $5,463,928. The trade was a 12.42 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.07% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

A number of institutional investors have recently made changes to their positions in the business. Compass Financial Services Inc acquired a new stake in International Business Machines during the fourth quarter worth $26,000. Hazlett Burt & Watson Inc. increased its holdings in shares of International Business Machines by 1,054.5% during the third quarter. Hazlett Burt & Watson Inc. now owns 127 shares of the technology company’s stock worth $29,000 after buying an additional 116 shares in the last quarter. Hara Capital LLC acquired a new position in shares of International Business Machines in the 3rd quarter worth approximately $29,000. Avondale Wealth Management grew its position in International Business Machines by 56.0% during the 4th quarter. Avondale Wealth Management now owns 156 shares of the technology company’s stock worth $34,000 after acquiring an additional 56 shares during the last quarter. Finally, Valued Wealth Advisors LLC increased its holdings in International Business Machines by 134.3% during the 4th quarter. Valued Wealth Advisors LLC now owns 157 shares of the technology company’s stock valued at $35,000 after purchasing an additional 90 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Trading Up 12.6 %

The company has a 50-day simple moving average of $225.24 and a 200-day simple moving average of $213.55. The stock has a market cap of $237.94 billion, a P/E ratio of 37.53, a P/E/G ratio of 4.78 and a beta of 0.74. The company has a debt-to-equity ratio of 2.16, a quick ratio of 1.01 and a current ratio of 1.06.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.