Home » International Business Machines Corporation (IBM) Shares Down Despite Recent Market Volatility

International Business Machines Corporation (IBM) Shares Down Despite Recent Market Volatility

International Business Machines Corporation (NYSE: IBM)’s stock price has decreased by -0.55 compared to its previous closing price of 124.05. However, the company has experienced a -1.07% decline in its stock price over the last five trading sessions. The Wall Street Journal reported on 01/25/23 that IBM to Cut 3,900 Jobs Amid Broader Tech Slowdown

Is It Worth Investing in International Business Machines Corporation (NYSE: IBM) Right Now?

International Business Machines Corporation (NYSE: IBM) has a price-to-earnings ratio of 64.97x that is above its average ratio. Additionally, the 36-month beta value for IBM is 0.85. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 0 rating it as “overweight,” 10 rating it as “hold,” and 1 rating it as “sell.”


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The average price predicted by analysts for IBM is $146.00, which is $23.82 above the current price. The public float for IBM is 903.33M and currently, short sellers hold a 2.88% ratio of that float. The average trading volume of IBM on March 24, 2023 was 5.05M shares.

IBM’s Market Performance

The stock of International Business Machines Corporation (IBM) has seen a -1.07% decrease in the past week, with a -5.80% drop in the past month, and a -12.68% fall in the past quarter. The volatility ratio for the week is 1.71%, and the volatility levels for the past 30 days are at 1.64% for IBM. The simple moving average for the last 20 days is -3.03% for IBM stock, with a simple moving average of -8.57% for the last 200 days.

Analysts’ Opinion of IBM

MoffettNathanson, on the other hand, stated in their research note that they expect to see IBM reach a price target of $140. The rating they have provided for IBM stocks is “Market Perform” according to the report published on January 24th, 2023.

MoffettNathanson gave a rating of “Market Perform” to IBM, setting the target price at $140 in the report published on January 19th of the current year.

IBM Trading at -7.72% 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 -19.48% of loss for the given period.

Volatility was left at 1.64%, however, over the last 30 days, the volatility rate increased by 1.71%, as shares sank -5.67% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -14.80% lower at present.

During the last 5 trading sessions, IBM fell by -1.07%, which changed the moving average for the period of 200-days by -13.65% in comparison to the 20-day moving average, which settled at $126.85. In addition, International Business Machines Corporation saw -12.44% in overturn over a single year, with a tendency to cut further losses.

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 8.10, with 1.30 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 2.60, 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

In conclusion, International Business Machines Corporation (IBM) has seen bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. 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.