Market Analysts see International Business Machines Corporation [IBM] falling to $111. Time to buy?

International Business Machines Corporation [NYSE: IBM] loss -0.16% or -0.23 points to close at $147.27 with a heavy trading volume of 3969843 shares. The company report on December 7, 2022 that IBM to Acquire Octo.

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Acquisition to bring Octo’s expertise and agility together with IBM’s reach and scale to help accelerate U.S. federal government digital transformation.

IBM (NYSE: IBM) today announced an agreement to acquire Octo, a U.S.-based IT modernization and digital transformation services provider exclusively serving the U.S. federal government, including defense, health, and civilian agencies. IBM’s acquisition of Octo establishes one of the largest digital transformation partners to the federal government. Upon the close of the acquisition, Octo’s approximately 1,500 employees will join IBM Consulting’s U.S. public and federal market organization.

It opened the trading session at $147.33, the shares rose to $148.105 and dropped to $146.29, the range by which the price of stock traded the whole day. The daily chart for IBM points out that the company has recorded 4.57% gains over the past six months. However, it is still -27.46% lower than its most recent low trading price.

If we look at the average trading volume of 4.65M shares, IBM reached to a volume of 3969843 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 $141.08 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.

UBS have made an estimate for International Business Machines Corporation shares, keeping their opinion on the stock as Sell, with their previous recommendation back on October 20, 2022. While these analysts kept the previous recommendation, Evercore ISI raised their target price from $125 to $135. The new note on the price target was released on October 20, 2022, representing the official price target for International Business Machines Corporation stock. Previously, the target price had yet another drop from $158 to $155, while Credit Suisse kept a Outperform rating on IBM stock. On October 12, 2022, analysts decreased their price target for IBM shares from 163 to 158.

The Average True Range (ATR) for International Business Machines Corporation is set at 2.39, with the Price to Sales ratio for IBM stock in the period of the last 12 months amounting to 2.21. The Price to Book ratio for the last quarter was 6.63, with the Price to Cash per share for the same quarter was set at 10.55. Price to Free Cash Flow for IBM in the course of the last twelve months was 78.67 with Quick ratio for the last quarter at 0.90.

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 -1.09. With this latest performance, IBM shares gained by 6.46% in over the last four-week period, additionally plugging by 4.57% over the last 6 months – not to mention a rise of 21.13% 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 62.57, with the RSI for the last a single of trading hit 58.19, and the three-weeks RSI is set at 63.05 for International Business Machines Corporation [IBM]. The present Moving Average for the last 50 days of trading for this stock 135.14, while it was recorded at 148.00 for the last single week of trading, and 132.91 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 +12.25 and a Gross Margin at +53.72. International Business Machines Corporation’s Net Margin is presently recorded at +8.22.

Return on Equity for this stock inclined to 23.86, with Return on Assets sitting at 3.27.

International Business Machines Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.00.

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 9.22%.

An analysis of insider ownership at International Business Machines Corporation [IBM]

There are presently around $76,226 million, or 58.40% of IBM stock, in the hands of institutional investors. The top three institutional holders of IBM stocks are: VANGUARD GROUP INC with ownership of 79,079,065, which is approximately 2.21% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 69,910,978 shares of the stock with an approximate value of $10.3 billion in IBM stocks shares; and STATE STREET CORP, currently with $7.83 billion in IBM stock with ownership of nearly 0.39% 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 1,161 institutional holders increased their position in International Business Machines Corporation [NYSE:IBM] by around 20,743,807 shares. Additionally, 969 investors decreased positions by around 12,887,937 shares, while 329 investors held positions by with 483,963,737 shares. The mentioned changes placed institutional holdings at 517,595,481 shares, according to the latest SEC report filing. IBM stock had 104 new institutional investments in for a total of 1,753,467 shares, while 163 institutional investors sold positions of 1,709,673 shares during the same period.

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