IBM (IBM) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of IBM (NYSE:IBM) from a hold rating to a buy rating in a report released on Tuesday, September 18th. They currently have $166.00 target price on the technology company’s stock.
According to Zacks, “IBM provides advanced information technology solutions, including computer systems, software, storage systems and microelectronics. The company benefits from strong demand for z14 Mainframe and Power products. Moreover, IBM’s improving position in the cloud, security and analytics bodes well. Also, accretive acquisitions have expanded IBM’s product portfolio into higher-growth segments, such as cloud computing, AI and Big Data. Further, IBM’s advanced blockchain, cloud; machine learning ("ML") capabilities, among others poises its offerings well to gain robust adoption. However, 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 continues to hurt the stock, which has underperformed the industry, on a year-to-date basis.”
A number of other equities research analysts also recently commented on IBM. Wedbush reaffirmed a neutral rating and issued a $185.00 price objective on shares of IBM in a research report on Thursday, July 19th. BMO Capital Markets reduced their target price on IBM from $175.00 to $172.00 and set a $149.24 rating on the stock in a report on Thursday, July 19th. Nomura assumed coverage on IBM in a report on Wednesday, June 27th. They issued a buy rating and a $160.00 target price on the stock. Morgan Stanley reduced their target price on IBM from $198.00 to $185.00 and set a $149.24 rating on the stock in a report on Thursday, July 19th. Finally, Bank of America reiterated a buy rating and issued a $200.00 target price on shares of IBM in a report on Thursday, July 19th. Five analysts have rated the stock with a sell rating, ten have assigned a hold rating and ten have issued a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $168.45.
IBM (NYSE:IBM) last released its quarterly earnings results on Wednesday, July 18th. The technology company reported $3.08 earnings per share for the quarter, topping the consensus estimate of $3.04 by $0.04. The company had revenue of $20 billion during the quarter, compared to the consensus estimate of $19.85 billion. IBM had a return on equity of 69.84% and a net margin of 7.13%. IBM’s revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the business posted $2.94 earnings per share. As a group, equities research analysts predict that IBM will post 13.82 earnings per share for the current year.
In related news, insider Diane J. Gherson sold 11,451 shares of the business’s stock in a transaction dated Friday, August 3rd. The stock was sold at an average price of $145.42, for a total value of $1,665,204.42. Following the transaction, the insider now owns 19,114 shares in the company, valued at $2,779,557.88. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 0.17% of the company’s stock.
A number of institutional investors have recently made changes to their positions in IBM. Thrivent Financial for Lutherans increased its holdings in IBM by 4.1% in the first quarter. Thrivent Financial for Lutherans now owns 49,216 shares of the technology company’s stock valued at $7,551,000 after buying an additional 1,919 shares during the last quarter. KLCM Advisors Inc. increased its holdings in IBM by 61.7% in the first quarter. KLCM Advisors Inc. now owns 119,305 shares of the technology company’s stock valued at $18,305,000 after buying an additional 45,544 shares during the last quarter. SVA Plumb Wealth Management LLC increased its holdings in IBM by 5.0% in the first quarter. SVA Plumb Wealth Management LLC now owns 28,418 shares of the technology company’s stock valued at $4,123,000 after buying an additional 1,342 shares during the last quarter. Hanson & Doremus Investment Management increased its holdings in IBM by 16.3% in the first quarter. Hanson & Doremus Investment Management now owns 27,925 shares of the technology company’s stock valued at $4,285,000 after buying an additional 3,910 shares during the last quarter. Finally, Vantage Investment Advisors LLC increased its holdings in IBM by 99.8% in the first quarter. Vantage Investment Advisors LLC now owns 28,418 shares of the technology company’s stock valued at $4,360,000 after buying an additional 14,196 shares during the last quarter. 55.39% of the stock is owned by hedge funds and other institutional investors.
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.
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