DZ Bank has recently reduced IBM Common Stock (IBM) stock to Hold rating, as announced on October 2, 2024, according to Finviz. Earlier, on June 24, 2024, Goldman had initiated the stock to Buy, setting a price target of $200. Exane BNP Paribas also initiated Underperform rating with a price target of $145. Additionally, Evercore ISI raised rating on January 19, 2024, with a target price of $200. Jefferies analysts, in their report published on January 5, 2024, also initiated Hold rating and set a price target of $180 for IBM Common Stock’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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IBM Common Stock (IBM) Stock Trading Recap
On Monday, IBM Common Stock (IBM) stock saw a decline, ending the day at $213.57 which represents a decrease of $-0.15 or -0.07% from the prior close of $213.72. The stock opened at $214.4 and touched a low of $213.48 during the day, reaching a high of $215.41. The volume of shares traded was 3.00 million falling short of the average volume of 3.83 million.
IBM Stock Performance and Moving Averages
In recent trading, IBM Common Stock (IBM) stock price has shown some volatility, fluctuating 3.51% over the last five trades and -8.44% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 27.46%, and it has gained 11.82% in the previous three months. Currently, IBM is trading at -2.33%, -2.14%, and 11.66% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, IBM, a Technology sector stock, is trading -10.03% below its 52-week high but remains 47.01% above its 52-week low. The Average True Range (ATR) (14 days) of 3.97 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
IBM Common Stock’s Profitability and Valuation Ratios
IBM Common Stock’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 17.33% and a profit margin of 10.22%, with a gross margin of 27.46%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, IBM Common Stock’s market capitalization stands at $197.50 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 31.08, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 19.91. Additionally, the Price-to-Sales Ratio is 3.16, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 8.08, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.10% of IBM Common Stock (IBM)’s shares, while financial institutions hold 61.09%.
Notable insider trades include LAMOREAUX NICKLE JACLYN, Senior Vice President at IBM Common Stock (IBM), who sold 3600 shares on Nov 08 ’24, at $215.2 each, totaling $0.77 million. On Feb 01 ’24, BROWDY MICHELLE H, Senior Vice President, sold 9800 shares for $184.85 each, amounting to $1.81 million.
