Zacks Investment Research Lowers International Business Machines Corporation (IBM) to Sell

Zacks Investment Research lowered shares of International Business Machines Corporation (NYSE:IBM) from a hold rating to a sell rating in a research report sent to investors on Tuesday, October 17th.

According to Zacks, “IBM’s focus on “Strategic Imperatives” is anticipated to drive top-line growth in the long haul. However, third-quarter revenue guidance reflects negative impact from seasonality, which is anticipated to be partially neutralized by higher contributions from the new Mainframe z14 product and services contracts. Despite sluggish revenue growth projections in the near term, IBM maintained 2017 earnings guidance suggesting improving strength in cloud, mobile, security and social products as well as cost savings. The company’s expanding footprint in the rapidly growing blockchain market is positive in our view. Moreover, IBM’s solid patent portfolio is a key catalyst. On a year-to-date basis, the company has outperformed the industry it belongs to. However, intensifying competition in most of the markets remains a major concern. Notably, estimates have been going down ahead of the company's Q3 earnings release.”

Several other equities analysts have also issued reports on the company. Cantor Fitzgerald reissued a hold rating and issued a $154.00 price target on shares of International Business Machines Corporation in a research note on Friday, October 13th. Royal Bank Of Canada reissued a hold rating on shares of International Business Machines Corporation in a research note on Friday, October 13th. Stifel Nicolaus reissued a buy rating and issued a $182.00 price target on shares of International Business Machines Corporation in a research note on Friday, October 6th. ValuEngine raised International Business Machines Corporation from a hold rating to a buy rating in a research note on Monday, October 2nd. Finally, Jefferies Group LLC reissued a sell rating and issued a $125.00 price target on shares of International Business Machines Corporation in a research note on Thursday, September 21st. Eight investment analysts have rated the stock with a sell rating, seventeen have issued a hold rating and ten have assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average target price of $158.90.

Shares of International Business Machines Corporation (NYSE IBM) traded up 0.05% during trading on Tuesday, hitting $153.68. 4,895,186 shares of the stock were exchanged. The stock has a market cap of $142.83 billion, a price-to-earnings ratio of 12.82 and a beta of 0.95. The stock’s 50 day moving average is $148.51 and its 200-day moving average is $150.72. International Business Machines Corporation has a 12-month low of $139.13 and a 12-month high of $182.79.

International Business Machines Corporation (NYSE:IBM) last issued its quarterly earnings results on Tuesday, October 17th. The technology company reported $3.30 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $3.28 by $0.02. International Business Machines Corporation had a return on equity of 68.68% and a net margin of 14.43%. The firm had revenue of $19.15 billion for the quarter, compared to analyst estimates of $18.63 billion. During the same period in the previous year, the firm earned $3.29 earnings per share. The company’s revenue was down .4% compared to the same quarter last year. Equities research analysts anticipate that International Business Machines Corporation will post $13.80 EPS for the current year.

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Several hedge funds and other institutional investors have recently modified their holdings of IBM. Herndon Capital Management LLC lifted its position in shares of International Business Machines Corporation by 39.0% during the 2nd quarter. Herndon Capital Management LLC now owns 695 shares of the technology company’s stock valued at $107,000 after buying an additional 195 shares during the last quarter. Edge Wealth Management LLC lifted its holdings in International Business Machines Corporation by 5.6% during the 2nd quarter. Edge Wealth Management LLC now owns 760 shares of the technology company’s stock worth $117,000 after purchasing an additional 40 shares in the last quarter. ETF Managers Group LLC purchased a new stake in International Business Machines Corporation during the 2nd quarter worth about $121,000. Peddock Capital Advisors LLC lifted its holdings in International Business Machines Corporation by 7.3% during the 2nd quarter. Peddock Capital Advisors LLC now owns 912 shares of the technology company’s stock worth $140,000 after purchasing an additional 62 shares in the last quarter. Finally, Horan Securities Inc. lifted its holdings in International Business Machines Corporation by 845.5% during the 2nd quarter. Horan Securities Inc. now owns 936 shares of the technology company’s stock worth $144,000 after purchasing an additional 837 shares in the last quarter. 57.83% of the stock is currently owned by hedge funds and other institutional investors.

About International Business Machines Corporation

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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