International Business Machines Corp. (NYSE: IBM)’s stock price has soared by 0.18 in relation to previous closing price of 181.58. Nevertheless, the company has seen a gain of 0.36% in its stock price over the last five trading days. InvestorPlace reported 2024-04-22 that In a market cycle where the spotlight shines on artificial intelligence and cryptocurrencies among other growth-centric concepts, targeting dividend stocks is inherently a conservative venture. Turns out, that might be the most prudent plan given the circumstances.
Is It Worth Investing in International Business Machines Corp. (NYSE: IBM) Right Now?
The price-to-earnings ratio for International Business Machines Corp. (NYSE: IBM) is above average at 22.40x, Company’s 36-month beta value is 0.71.Analysts have differing opinions 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 915.85M, and currently, short sellers hold a 2.54% ratio of that floaft. The average trading volume of IBM on April 23, 2024 was 4.93M shares.
IBM’s Market Performance
IBM stock saw a decrease of 0.36% in the past week, with a monthly decline of -5.21% and a quarterly a decrease of 5.25%. The volatility ratio for the week is 1.56%, and the volatility levels for the last 30 days are 1.54% for International Business Machines Corp. (IBM).. The simple moving average for the past 20 days is -2.76% for IBM’s stock, with a 13.21% 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 -3.40% 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 -8.68% of loss for the given period.
Volatility was left at 1.54%, however, over the last 30 days, the volatility rate increased by 1.56%, as shares sank -4.68% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.33% lower at present.
During the last 5 trading sessions, IBM rose by +0.36%, which changed the moving average for the period of 200-days by +37.64% in comparison to the 20-day moving average, which settled at $186.61. In addition, International Business Machines Corp. saw 11.22% 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 3.45. 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
In a nutshell, International Business Machines Corp. (IBM) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
