Royal Bank of Canada Reaffirms IBM Stock Rating

The stock of International Business Machines (NYSE:IBM) has had its "outperform" rating restated by analysts from the Royal Bank of Canada. This reaffirmation was noted in a research report released on Thursday. The analysts at Royal Bank of Canada have set a target price of $250.00 for IBM shares. This target suggests a potential upside of 14.91% from IBM's current trading price, indicating positive growth prospects for the company.

In addition to the Royal Bank of Canada’s report, several other analysts have also recently provided their assessments of IBM's stock. DZ Bank downgraded IBM from a "buy" rating to a "hold" rating, assigning a target price of $215.00 in their report from early October. Meanwhile, Bernstein Bank has raised their price target for IBM from $185.00 to $210.00 while maintaining a "market perform" rating. Evercore ISI also raised their price target from $215.00 to $240.00 and retained an "outperform" rating.

Furthermore, BMO Capital Markets has increased their price target from $235.00 to $260.00 while rating the stock as "market perform." Earlier in the fall, The Goldman Sachs Group also lifted their target price from $220.00 to $250.00, giving IBM a "buy" rating. The overall consensus from market analysts indicates that three have rated the stock as a sell, eight have categorized it as a hold, and seven have expressed a buy rating, leading to an average price target of approximately $208.12.

IBM Stock Performance

During trading on Thursday, shares of IBM saw a decrease of $15.18, bringing the price down to $217.57. The volume of shares traded was around 7,042,949, significantly higher than the average volume of 4,205,208 shares. As of now, IBM's 50-day moving average stands at $214.67, and the 200-day moving average is $190.05. The company's market capitalization is approximately $199.86 billion, with a PE ratio of 24.64 and a P/E/G ratio of 5.21. Additionally, IBM's current ratio is 1.12, the quick ratio is 1.08, and the debt-to-equity ratio is 2.20. Over the past year, IBM's stock has fluctuated between a low of $136.33 and a high of $237.37.

In its latest quarterly earnings report released on October 23rd, IBM reported earnings of $2.30 per share, slightly exceeding analysts' expectations of $2.25 per share. The company reported a revenue of $14.97 billion for the quarter, albeit falling short of the consensus estimate of $15.08 billion. IBM registered a net margin of 13.52% and a return on equity of 40.59%. In comparison to the same quarter last year, revenue saw a year-over-year increase of 1.5%, as the company earned $2.20 EPS during that period. Looking ahead, analysts anticipate IBM will post a total of $10.1 EPS for the entire year.

Institutional Holdings

Recently, several institutional investors have modified their positions regarding IBM shares. Goldstein Advisors LLC reported a 4.0% increase in their stake in IBM during the third quarter, now holding 1,217 shares valued at approximately $269,000. Clear Harbor Asset Management LLC increased its stake by 20.5%, now owning 2,323 shares with a value of $514,000 after acquiring an additional 395 shares. Smith Salley Wealth Management reported a 2.1% gain in their holdings, amounting to 9,173 shares valued at $2,028,000. Additionally, DekaBank Deutsche Girozentrale added a notable 7.9% to their stake, acquiring 98,516 new shares, bringing their total to 1,351,453 shares worth around $298.14 million. Modera Wealth Management also raised their holdings by 14.9%, resulting in a total of 22,414 shares valued at approximately $4,955,000.

Currently, institutional and hedge fund investors hold around 58.96% of IBM's stock, reflecting significant investment interest in the company.

About International Business Machines

International Business Machines Corporation, widely known as IBM, offers a range of integrated solutions and services worldwide. The company operates through several segments including Software, Consulting, Infrastructure, and Financing. Its Software segment specializes in hybrid cloud and AI platforms, assisting clients in achieving their digital transformation goals through innovative applications and data management solutions.

IBM, Stock, Investment