International Business Machines (IBM) Downgraded by Zacks Investment Research to “Sell”

International Business Machines (NYSE:IBM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday, December 19th.

According to Zacks, “IBM provides advanced information technology solutions, including computer systems, software, storage systems and microelectronics. Shares of the company have underperformed the industry over the past one year. IBM is having a tough time, given the ongoing and heavily time-consuming business model transition to cloud.  Further, sluggish IT spending particularly on on-premise and data center hardware and foreign exchange volatility remain concerns. Moreover, intensifying competition in most of the markets is a major concern. Nonetheless, IBM is benefiting from robust performance of cognitive solutions, which are driven by strong demand for security, IoT and analytics offerings. Moreover, continuing strength in cloud, mobile, security and analytics as well as cost savings are expected to drive profitability.  The company’s expanding footprint in the rapidly growing blockchain market is positive in our view. “

A number of other brokerages have also weighed in on IBM. Berenberg Bank set a $125.00 price objective on International Business Machines and gave the company a “sell” rating in a research note on Wednesday, October 18th. Vetr lowered International Business Machines from a “buy” rating to a “hold” rating and set a $160.68 price objective for the company. in a research note on Thursday, October 19th. Tigress Financial restated a “buy” rating on shares of International Business Machines in a research note on Friday, December 1st. Pivotal Research started coverage on International Business Machines in a report on Friday, October 27th. They set a “buy” rating and a $180.00 target price on the stock. Finally, KeyCorp reaffirmed a “hold” rating on shares of International Business Machines in a report on Friday, November 3rd. Seven equities research analysts have rated the stock with a sell rating, seventeen have given a hold rating and twelve have given a buy rating to the stock. International Business Machines currently has an average rating of “Hold” and a consensus target price of $159.90.

Shares of International Business Machines (NYSE:IBM) traded down $1.06 during midday trading on Tuesday, reaching $163.14. The company’s stock had a trading volume of 5,007,300 shares, compared to its average volume of 4,810,000. International Business Machines has a 12-month low of $139.13 and a 12-month high of $182.79. The company has a current ratio of 1.41, a quick ratio of 1.36 and a debt-to-equity ratio of 2.09. The firm has a market cap of $151,030.00, a price-to-earnings ratio of 13.62, a PEG ratio of 2.39 and a beta of 0.94.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Tuesday, October 17th. The technology company reported $3.30 earnings per share for the quarter, beating analysts’ consensus estimates of $3.28 by $0.02. International Business Machines had a return on equity of 68.68% and a net margin of 14.43%. The firm had revenue of $19.15 billion during the quarter, compared to analyst estimates of $18.63 billion. During the same quarter last year, the firm earned $3.29 EPS. International Business Machines’s quarterly revenue was down .4% on a year-over-year basis. equities analysts anticipate that International Business Machines will post 13.78 EPS for the current year.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Massmutual Trust Co. FSB ADV raised its stake in International Business Machines by 89.1% during the 1st quarter. Massmutual Trust Co. FSB ADV now owns 27,443 shares of the technology company’s stock valued at $4,779,000 after acquiring an additional 12,928 shares in the last quarter. Checchi Capital Advisers LLC raised its stake in International Business Machines by 7.9% during the 1st quarter. Checchi Capital Advisers LLC now owns 13,052 shares of the technology company’s stock valued at $2,273,000 after acquiring an additional 954 shares in the last quarter. Buffington Mohr McNeal raised its stake in International Business Machines by 21.8% during the 1st quarter. Buffington Mohr McNeal now owns 4,700 shares of the technology company’s stock valued at $818,000 after acquiring an additional 841 shares in the last quarter. Pinnacle Financial Partners Inc. raised its stake in International Business Machines by 6.2% during the 1st quarter. Pinnacle Financial Partners Inc. now owns 15,542 shares of the technology company’s stock valued at $2,706,000 after acquiring an additional 913 shares in the last quarter. Finally, NTV Asset Management LLC raised its stake in International Business Machines by 1.5% during the 1st quarter. NTV Asset Management LLC now owns 13,679 shares of the technology company’s stock valued at $2,382,000 after acquiring an additional 200 shares in the last quarter. 57.11% of the stock is currently owned by institutional investors and hedge funds.

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International Business Machines Company Profile

International Business Machines Corporation (IBM) is a technology company. The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing. The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems.

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