International Business Machines Corporation is part of the application software industry and is in the technology sector. International Business Machines Corp offers a variety of IT services along with software, and hardware. It has operations in over 170 countries and provides planning, build, manage, and maintain IT infrastructure, platforms, applications, and services.
Previous Intraday Trading Performance:
The IBM stock showed a previous change of 0.39% with an open at 132.35 and a close of 133.71. It reached an intraday high of 133.71 and a low of 132.19.
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The stock has a market cap of $121.5b with 908.8m shares outstanding, of which the float is 906.8m shares. Trading volume reached 3,139,491 shares compared to its average volume of 5,407,173 shares. Based on the current average volume and close price, the trading liquidity is good.
Historical Trading Performance:
Over the last five trading days, International Business Machines Corporation shares returned 0.06% and in the past 30 trading days it returned 18.89%. Over three months, it changed 14.50%. In one year it has changed -15.24% and within that year its 52-week high was 162.11 and its 52-week low was 105.94. IBM stock is 26.21% above its 52 Week Low.
Our calculations show a 200 day moving average of 133.33 and a 50 day moving average of 121.68. Currently IBM stock is trading 0.28% above its 200 day moving average and may be a good opportunity to buy.
The last annual fiscal EPS for the company was reported at 13.82 that ended on 31st of December 2018, which according to the previous close, that is a PE of 14.06. Based on 7 analyst estimates, the consensus EPS for the next quarter is 4.81. The TTM EPS is 13.82, which comes to a TTM PE of 9.68. Historically, the PE high was 27.80 and the PE low was 8.70. If the stock reached its PE low, that would represent a price of 120.17, which is a decrease of -10.12%.
The following are the last four quarter reported earnings per share:
The dividend per share is currently 6.28, which is a dividend yield of 4.70%. Also, the payout ratio is 45.44%, therefore the dividend is safe according to our calculations. IBM stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.
Base on our calculations, the intrinsic value per share is 123.97, which means it may be overvalued by -7.85%
Indicators to Watch:
Based on the latest filings, there is 83.50% of institutional ownership. Short-interest is 13,093,463, which is 1.44% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.43. This stock has some short interest, but it may be normal and no cause for concern if long the position.
The current calculated beta is 1.25
Based on last reported financials, the company’s return on equity is 51.89%, return on assets is 7.17%, profit margin is 10.99%, price-to-sales is 1.52 and price-to-book is 7.23.
All scores are out of six:
2 :Valuation Score
3 :Past Performance Score
3 :Financial Strength Score
2 :Future Growth Score
6 :Dividend Score
3 :Overall Score