Analysts expect IBM (NYSE:IBM) to report earnings of $4.81 per share for the current fiscal quarter, Zacks reports. Five analysts have made estimates for IBM’s earnings, with the highest EPS estimate coming in at $4.87 and the lowest estimate coming in at $4.68. IBM posted earnings per share of $5.18 in the same quarter last year, which indicates a negative year over year growth rate of 7.1%. The company is scheduled to issue its next earnings report after the market closes on Tuesday, January 22nd.
According to Zacks, analysts expect that IBM will report full-year earnings of $13.78 per share for the current fiscal year, with EPS estimates ranging from $13.62 to $13.90. For the next fiscal year, analysts anticipate that the business will report earnings of $13.86 per share, with EPS estimates ranging from $13.28 to $14.40. Zacks Investment Research’s earnings per share averages are a mean average based on a survey of research analysts that follow IBM.
A number of brokerages have recently commented on IBM. ValuEngine lowered IBM from a “hold” rating to a “sell” rating in a report on Wednesday, October 17th. Moffett Nathanson began coverage on IBM in a report on Thursday, October 4th. They issued a “sell” rating and a $150.00 price target on the stock. Argus lowered IBM from a “buy” rating to a “hold” rating in a report on Thursday, October 18th. Wolfe Research began coverage on IBM in a report on Tuesday, December 11th. They issued a “market perform” rating on the stock. Finally, Cantor Fitzgerald cut their price target on IBM from $152.00 to $140.00 and set a “neutral” rating on the stock in a report on Wednesday, October 17th. Three research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have issued a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $159.18.
Shares of IBM stock opened at $123.82 on Thursday. The stock has a market capitalization of $112.53 billion, a PE ratio of 8.97, a PEG ratio of 1.79 and a beta of 1.14. IBM has a one year low of $105.94 and a one year high of $168.72. The company has a debt-to-equity ratio of 1.81, a quick ratio of 1.26 and a current ratio of 1.31.
IBM declared that its Board of Directors has approved a stock buyback plan on Tuesday, October 30th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the technology company to repurchase up to 3.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
In related news, Chairman Virginia M. Rometty acquired 8,500 shares of the company’s stock in a transaction dated Friday, November 2nd. The stock was bought at an average cost of $117.51 per share, with a total value of $998,835.00. Following the acquisition, the chairman now owns 11,368 shares of the company’s stock, valued at approximately $1,335,853.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Sidney Taurel acquired 4,311 shares of the company’s stock in a transaction dated Wednesday, October 31st. The shares were bought at an average cost of $115.02 per share, with a total value of $495,851.22. Following the completion of the acquisition, the director now directly owns 19,987 shares in the company, valued at approximately $2,298,904.74. The disclosure for this purchase can be found here. 0.17% of the stock is owned by company insiders.
A number of institutional investors have recently bought and sold shares of the business. Lathrop Investment Management Corp purchased a new position in shares of IBM during the third quarter valued at about $215,000. Paloma Partners Management Co lifted its holdings in shares of IBM by 127.4% in the 3rd quarter. Paloma Partners Management Co now owns 1,453 shares of the technology company’s stock worth $220,000 after acquiring an additional 6,757 shares during the last quarter. Harvest Fund Management Co. Ltd bought a new stake in shares of IBM in the 3rd quarter worth about $233,000. Cozad Asset Management Inc. increased its stake in IBM by 39.2% in the 4th quarter. Cozad Asset Management Inc. now owns 3,171 shares of the technology company’s stock worth $360,000 after buying an additional 893 shares during the period. Finally, Accuvest Global Advisors purchased a new position in IBM in the 3rd quarter worth about $525,000. 56.36% of the stock is owned by institutional investors and hedge funds.
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a computing platform that interacts in language, processes big data, and learns from interactions with people and computers. This segment also offers data and analytics solutions, including analytics and data management platforms, cloud data services, enterprise social software, talent management solutions, and tailored industry solutions; and transaction processing software that runs mission-critical systems in banking, airlines, and retail industries.
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