International Business Machines (NYSE:IBM) Stock Price Up 12.8% Following Strong Earnings

International Business Machines Co. (NYSE:IBM) shares rose 12.8% during trading on Thursday following a stronger than expected earnings report. The company traded as high as $261.80 and last traded at $257.81. Approximately 7,278,615 shares changed hands during mid-day trading, an increase of 81% from the average daily 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 analysts’ consensus estimates of $3.77 by $0.15. International Business Machines had a return on equity of 40.52% and a net margin of 10.22%.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 10th. Stockholders of record on Monday, February 10th will be given a dividend of $1.67 per share. The ex-dividend date is Monday, February 10th. This represents a $6.68 dividend on an annualized basis and a dividend yield of 2.59%. International Business Machines’s dividend payout ratio (DPR) is presently 97.23%.

Analyst Upgrades and Downgrades

IBM has been the subject of a number of recent research reports. Stifel Nicolaus increased their price objective on International Business Machines from $205.00 to $246.00 and gave the company a “buy” rating in a research report on Wednesday, October 16th. UBS Group increased their target price on International Business Machines from $150.00 to $160.00 and gave the company a “sell” rating in a report on Tuesday, January 14th. Bernstein Bank increased their target price on International Business Machines from $185.00 to $210.00 and gave the company a “market perform” rating in a report on Thursday, October 3rd. Royal Bank of Canada restated an “outperform” rating and issued a $250.00 target price on shares of International Business Machines in a report on Monday. Finally, BMO Capital Markets increased their target price on International Business Machines from $260.00 to $280.00 and gave the company a “market perform” rating in a report on Thursday. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, International Business Machines presently has a consensus rating of “Hold” and a consensus price target of $225.53.

Insiders Place Their Bets

In other news, SVP Nickle Jaclyn Lamoreaux sold 3,600 shares of the firm’s stock in a transaction dated Friday, November 8th. The stock was sold at an average price of $215.20, for a total value of $774,720.00. Following the sale, the senior vice president now directly owns 25,390 shares of the company’s stock, valued at approximately $5,463,928. This trade represents a 12.42 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.07% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Meeder Asset Management Inc. lifted its stake in shares of International Business Machines by 40.9% in the third quarter. Meeder Asset Management Inc. now owns 572 shares of the technology company’s stock valued at $126,000 after buying an additional 166 shares during the period. Brady Martz Wealth Solutions LLC acquired a new stake in shares of International Business Machines during the fourth quarter worth approximately $1,940,000. Philip James Wealth Mangement LLC acquired a new stake in shares of International Business Machines during the third quarter worth approximately $5,117,000. Nordea Investment Management AB increased its holdings in shares of International Business Machines by 6.5% during the fourth quarter. Nordea Investment Management AB now owns 75,638 shares of the technology company’s stock worth $16,615,000 after buying an additional 4,625 shares in the last quarter. Finally, M.E. Allison & CO. Inc. acquired a new stake in shares of International Business Machines in the fourth quarter valued at approximately $1,034,000. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Trading Up 12.9 %

The company has a quick ratio of 1.01, a current ratio of 1.06 and a debt-to-equity ratio of 2.16. The firm has a market cap of $238.76 billion, a price-to-earnings ratio of 37.59, a price-to-earnings-growth ratio of 4.78 and a beta of 0.74. The business’s fifty day moving average is $225.24 and its two-hundred day moving average is $213.55.

International Business Machines Company Profile

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.