International Business Machines Corporation (NYSE: IBM)’s stock price has decreased by -0.62 compared to its previous closing price of 145.99. However, the company has seen a -2.22% decrease in its stock price over the last five trading sessions. Market Watch reported 2023-09-18 that International Business Machines Corp. IBM, -0.62% said Monday it is committing to training 2 million people in artificial-intelligence technologies over the next three years, and offering course accreditation for its products. IBM shares closed Monday down 0.6% at $145.09, while the Dow Jones Industrial Average DJIA, +0.02% rose less than 0.1%.
Is It Worth Investing in International Business Machines Corporation (NYSE: IBM) Right Now?
International Business Machines Corporation (NYSE: IBM) has a higher price-to-earnings ratio of 70.74x compared to its average ratio. compared to its average ratio and a 36-month beta value of 0.85. Analysts have mixed views on the stock, with 4 analysts rating it as a “buy,” 0 as “overweight,” 12 as “hold,” and 1 as “sell.”
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The average price point forecasted by analysts for International Business Machines Corporation (IBM) is $144.57, which is -$0.82 below the current market price. The public float for IBM is 910.15M, and currently, short sellers hold a 3.03% ratio of that float. The average trading volume of IBM on September 19, 2023 was 4.11M shares.
IBM’s Market Performance
IBM stock saw an increase of -2.22% in the past week, with a monthly gain of 3.15% and a quarterly increase of 5.54%. The volatility ratio for the week is 1.13%, and the volatility levels for the last 30 days are 1.03% for International Business Machines Corporation (IBM). The simple moving average for the last 20 days is -0.54% for IBM stock, with a simple moving average of 6.92% for the last 200 days.
Analysts’ Opinion of IBM
Many brokerage firms have already submitted their reports for IBM stocks, with BMO Capital Markets repeating the rating for IBM by listing it as a “Market Perform.” The predicted price for IBM in the upcoming period, according to BMO Capital Markets is $150 based on the research report published on July 17, 2023 of the current year 2023.
IBM Trading at 1.99% from the 50-Day Moving Average
After a stumble in the market that brought IBM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.30% of loss for the given period.
Volatility was left at 1.03%, however, over the last 30 days, the volatility rate increased by 1.13%, as shares surge +2.60% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +9.85% upper at present.
During the last 5 trading sessions, IBM fell by -2.22%, which changed the moving average for the period of 200-days by -0.96% in comparison to the 20-day moving average, which settled at $146.06. In addition, International Business Machines Corporation saw 2.98% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at IBM starting from KAVANAUGH JAMES J, who sale 38,519 shares at the price of $133.73 back on Feb 01. After this action, KAVANAUGH JAMES J now owns 74,467 shares of International Business Machines Corporation, valued at $5,151,038 using the latest closing price.
Del Bene Robert F, the VP, Controller of International Business Machines Corporation, sale 3,000 shares at $148.36 during a trade that took place back on Nov 22, which means that Del Bene Robert F is holding 14,553 shares at $445,088 based on the most recent closing price.
Stock Fundamentals for IBM
Current profitability levels for the company are sitting at:
- +12.83 for the present operating margin
- +51.71 for the gross margin
The net margin for International Business Machines Corporation stands at +2.95. The total capital return value is set at 10.34, while invested capital returns managed to touch 2.61. Equity return is now at value 9.40, with 1.60 for asset returns.
Based on International Business Machines Corporation (IBM), the company’s capital structure generated 246.14 points at debt to equity in total, while total debt to capital is 71.11. Total debt to assets is 42.45, with long-term debt to equity ratio resting at 220.47. Finally, the long-term debt to capital ratio is 63.69.
When we switch over and look at the enterprise to sales, we see a ratio of 2.94, with the company’s debt to enterprise value settled at 0.31. The receivables turnover for the company is 3.81 and the total asset turnover is 0.47. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.89.
Conclusion
To put it simply, International Business Machines Corporation (IBM) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
