International Business Machines Corp. (NYSE: IBM)’s stock price has plunge by -0.59relation to previous closing price of 190.96. Nevertheless, the company has seen a -0.53% plunge in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-01 that In the closing of the recent trading day, IBM (IBM) stood at $189.83, denoting a -0.59% change from the preceding trading day.
Is It Worth Investing in International Business Machines Corp. (NYSE: IBM) Right Now?
International Business Machines Corp. (NYSE: IBM) has a higher price-to-earnings ratio of 23.37x compared to its average ratio. IBM has 36-month beta value of 0.70. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 4 as “overweight,” 15 as “hold,” and 3 as “sell.”
The public float for IBM is 915.86M, and currently, short sellers hold a 2.55% ratio of that float. The average trading volume of IBM on April 02, 2024 was 5.18M shares.
IBM’s Market Performance
IBM’s stock has seen a -0.53% decrease for the week, with a 2.59% rise in the past month and a 15.93% gain in the past quarter. The volatility ratio for the week is 1.00%, and the volatility levels for the past 30 days are at 1.76% for International Business Machines Corp. The simple moving average for the past 20 days is -1.47% for IBM’s stock, with a 21.08% simple moving average for the past 200 days.
Analysts’ Opinion of IBM
Many brokerage firms have already submitted their reports for IBM stocks, with Evercore ISI repeating the rating for IBM by listing it as a “Outperform.” The predicted price for IBM in the upcoming period, according to Evercore ISI is $200 based on the research report published on January 19, 2024 of the current year 2024.
Jefferies, on the other hand, stated in their research note that they expect to see IBM reach a price target of $180. The rating they have provided for IBM stocks is “Hold” according to the report published on January 05th, 2024.
Societe Generale gave a rating of “Sell” to IBM, setting the target price at $143 in the report published on January 05th of the current year.
IBM Trading at 1.59% 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 -4.69% of loss for the given period.
Volatility was left at 1.76%, however, over the last 30 days, the volatility rate increased by 1.00%, as shares surge +0.87% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +13.78% upper at present.
During the last 5 trading sessions, IBM fell by -0.53%, which changed the moving average for the period of 200-days by +37.96% in comparison to the 20-day moving average, which settled at $192.75. In addition, International Business Machines Corp. saw 16.07% 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 BROWDY MICHELLE H, who sale 9,800 shares at the price of $184.85 back on Feb 01 ’24. After this action, BROWDY MICHELLE H now owns 119,498 shares of International Business Machines Corp., valued at $1,811,524 using the latest closing price.
Stock Fundamentals for IBM
Current profitability levels for the company are sitting at:
- 0.14 for the present operating margin
- 0.55 for the gross margin
The net margin for International Business Machines Corp. stands at 0.12. The total capital return value is set at 0.09. Equity return is now at value 33.79, with 5.73 for asset returns.
Based on International Business Machines Corp. (IBM), the company’s capital structure generated 0.72 points at debt to capital in total, while cash flow to debt ratio is standing at 0.24. The debt to equity ratio resting at 2.53. The interest coverage ratio of the stock is 5.51.
Currently, EBITDA for the company is 14.74 billion with net debt to EBITDA at 3.7. When we switch over and look at the enterprise to sales, we see a ratio of 3.57. The receivables turnover for the company is 4.11for trailing twelve months and the total asset turnover is 0.46. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.94.
Conclusion
To put it simply, International Business Machines Corp. (IBM) has had a better performance in recent times. Analysts have a mixed 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.
