International Business Machines Corporation is in the application software industry and is in the technology sector. The company CEO is Virginia M. Rometty. 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 -0.08% with an open at 133.53 and a close of 132.28. It reached an intraday high of 134.25 and a low of 131.59.
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Liquidity:
The stock has a market cap of $117.3b with 886.6m shares outstanding, of which the float is 884.6m shares. Trading volume reached 2,594,561 shares compared to its average volume of 3,850,552 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 -2.10% and in the past 30 trading days it returned -7.27%. Over three months, it changed -4.02%. In one year it has changed -3.79% and within that year its 52-week high was 154.36 and its 52-week low was 105.94. IBM stock is 24.86% above its 52 Week Low.
Our calculations show a 200 day moving average of 131.86 and a 50 day moving average of 138.08. Currently IBM stock is trading 0.32% above its 200 day moving average and may be a good opportunity to buy.
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Earnings:
The last annual fiscal EPS for the company was reported at 9.51 that ended on 31st of December 2018, which according to the previous close, that is a PE of 13.91. Based on 7 analyst estimates, the consensus EPS for the next quarter is 2.22. The TTM EPS is 13.82, which comes to a TTM PE of 9.57. 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 120.25, which is a decrease of -9.09%.
Below was the last reported quarterly diluted earnings per share:
| 1st | Qtr of 2019 | 1.78 |
|---|---|---|
| 4th | Qtr of 2018 | 2.15 |
| 3rd | Qtr of 2018 | 2.94 |
| 2nd | Qtr of 2018 | 2.61 |
| 1st | Qtr of 2018 | 1.81 |
The dividend per share is currently 6.48, which is a dividend yield of 4.90%. Also, the payout ratio is 46.89%, 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 136.71, which means it is possibly undervalued and has a margin of safety of 3.24%.
Indicators to Watch:
Based on the latest filings, there is 83.30% of institutional ownership. Short-interest was 14,299,518, which was 1.61% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.42. 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 1.24.
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Fundamental Indicators:
Based on last reported financials, the company’s return on equity is 49.87%, return on assets is 6.74%, profit margin is 10.98%, price-to-sales is 1.49 and price-to-book is 7.12.
Company Scores:
All scores are out of six:
2 :Valuation Score
3 :Past Performance Score
3 :Financial Strength Score
1 :Future Growth Score
6 :Dividend Score
3 :Overall Score
