International Business Machines Corporation [NYSE: IBM] gained 0.21% or 0.29 points to close at $140.76 with a heavy trading volume of 2860162 shares. The company report on October 13, 2021 that Virgin Megastore in Saudi Arabia to Accelerate Digital Transformation with IBM and SAP.
The major entertainment retailer to migrate SAP ERP application workloads to IBM Cloud to gain flexibility, scale to help meet increasing consumer needs and bring increased levels of security to protect critical data.
IBM (NYSE: IBM), in collaboration with its business partner in Saudi Arabia Brmaja Commercial Company (Brmaja), has announced that Virgin Megastore KSA, a major entertainment retailer in the Kingdom of Saudi Arabia, is migrating its SAP ERP application workloads to IBM Cloud as part of its hybrid cloud strategy. The migration from on-premises to a cloud environment is designed to help the retailer create operational efficiencies and provide a platform for new digital services to their clients.
It opened the trading session at $140.52, the shares rose to $141.41 and dropped to $139.66, the range by which the price of stock traded the whole day. The daily chart for IBM points out that the company has recorded 6.17% gains over the past six months. However, it is still -32.89% lower than its most recent low trading price.
If we look at the average trading volume of 3.88M shares, IBM reached to a volume of 2860162 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about International Business Machines Corporation [IBM]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for IBM shares is $150.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on IBM stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Credit Suisse have made an estimate for International Business Machines Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 05, 2021. While these analysts kept the previous recommendation, Jefferies raised their target price to Buy. The new note on the price target was released on October 01, 2021, representing the official price target for International Business Machines Corporation stock. Previously, the target price had yet another raise from $121 to $140, while Societe Generale kept a Hold rating on IBM stock.
The Average True Range (ATR) for International Business Machines Corporation is set at 2.32, with the Price to Sales ratio for IBM stock in the period of the last 12 months amounting to 1.68. The Price to Book ratio for the last quarter was 5.74, with the Price to Cash per share for the same quarter was set at 8.96. Price to Free Cash Flow for IBM in the course of the last twelve months was 13.29 with Quick ratio for the last quarter at 0.80.
Trading performance analysis for IBM stock
International Business Machines Corporation [IBM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.12. With this latest performance, IBM shares gained by 3.33% in over the last four-week period, additionally plugging by 6.17% over the last 6 months – not to mention a rise of 12.52% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for IBM stock in for the last two-week period is set at 52.38, with the RSI for the last a single of trading hit 51.26, and the three-weeks RSI is set at 51.85 for International Business Machines Corporation [IBM]. The present Moving Average for the last 50 days of trading for this stock 139.71, while it was recorded at 141.74 for the last single week of trading, and 136.26 for the last 200 days.
International Business Machines Corporation [IBM]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and International Business Machines Corporation [IBM] shares currently have an operating margin of +13.14 and a Gross Margin at +47.34. International Business Machines Corporation’s Net Margin is presently recorded at +7.47.
Return on Total Capital for IBM is now 10.97, given the latest momentum, and Return on Invested Capital for the company is 6.99. Return on Equity for this stock inclined to 26.55, with Return on Assets sitting at 3.57. When it comes to the capital structure of this company, International Business Machines Corporation [IBM] has a Total Debt to Total Equity ratio set at 322.71. Additionally, IBM Total Debt to Total Capital is recorded at 76.34, with Total Debt to Total Assets ending up at 42.62. Long-Term Debt to Equity for the company is recorded at 281.25, with the Long-Term Debt to Total Capital now at 66.53.
Reflecting on the efficiency of the workforce at the company, International Business Machines Corporation [IBM] managed to generate an average of $14,658 per employee. Receivables Turnover for the company is 3.39 with a Total Asset Turnover recorded at a value of 0.48.International Business Machines Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 0.80.
International Business Machines Corporation [IBM]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for IBM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for International Business Machines Corporation go to 16.57%.
An analysis of insider ownership at International Business Machines Corporation [IBM]
There are presently around $71,396 million, or 57.80% of IBM stock, in the hands of institutional investors. The top three institutional holders of IBM stocks are: VANGUARD GROUP INC with ownership of 74,774,326, which is approximately 0.104% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 63,805,232 shares of the stock with an approximate value of $8.98 billion in IBM stocks shares; and STATE STREET CORP, currently with $7.3 billion in IBM stock with ownership of nearly 0.151% of the company’s market capitalization.
Positions in International Business Machines Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 1,080 institutional holders increased their position in International Business Machines Corporation [NYSE:IBM] by around 22,693,568 shares. Additionally, 886 investors decreased positions by around 17,561,804 shares, while 312 investors held positions by with 466,962,564 shares. The mentioned changes placed institutional holdings at 507,217,936 shares, according to the latest SEC report filing. IBM stock had 158 new institutional investments in for a total of 5,383,879 shares, while 79 institutional investors sold positions of 3,945,768 shares during the same period.