IBM stock: buy or sell?

IBM stock price: $141.88 -0.76% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Shares of International Business Machines declined a disappointing -0.76% and closed at $141.88.

International Business Machines Corporation provides information technology (IT) products and services worldwide. Its Cognitive Solutions segment includes Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.

Should I buy IBM stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with International Business Machines stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is International Business Machines stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 15 ratings published for IBM stock in the last month.

The general sentiment of these ratings is bullish for IBM stock, with 8 positive ratings.
Is IBM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-6Wells Fargo & Con/aMarket Perform
2019-8-5Nomuran/aBuy
2019-8-5Bank of American/aBuy
2019-8-12JPMorgan Chase & Co.n/aNeutral
2019-8-1Morgan Stanleyn/aOverweight
2019-7-19Credit Suisse Groupn/aBuy
2019-7-19Credit Suisse Groupn/aBuy
2019-7-18Nomuran/aBuy
2019-7-18JPMorgan Chase & Co.n/aNeutral
2019-4-17CitigroupPositiveNeutral
2019-4-11Credit Suisse Groupn/aOutperform
2019-1-23Wells Fargo & Con/aHold
2019-1-23WedbushNeutralHold
2019-1-23Royal Bank of CanadaOutperformOutperform
2019-1-23Citigroupn/aNeutral

IBM stock analysis

Daily outlook

International Business Machines declined a disappointing -0.76% and closed at $141.88.

The Big Blue shares declined -0.76% to $141.88 today. On August 27th IBM price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA100d and SMA200d crossed up on May, IBM price climbed $11.99 per share (9.23%).

IBM stock chart (daily)

Weekly outlook

Shares of International Business Machines slightly fell a lame -1.25% this week. Early August IBM collapsed a bloodcurdling -6.91% in just one week.

The Big Blue stock just marked a top under its last top. Athought it's not concerning right now, investors should be on alert as this could be a warning for future complications. It's important IBM stock price keeps the level, and maybe bounce up from there forming a double bottom shape. Since late August when IBM stock price broke up the SMA40w line, it gained $12.31 (9.50%). Since late April when SMA20w and SMA40w crossed up, IBM price gained $5.68 per share (4.17%).

IBM stock chart (weekly)

IBM stock price history

IBM stock historical price chart

IBM stock reached 52-week highs on August at $151.17, and all-time highs 2013-03-15 with a price of 169.3.

IBM stock price target is $157.60

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 14 price forecasts for IBM stock posted in the last month:
IBM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-6Wells Fargo & CoReiterates$140.00$147.005%
2019-8-5NomuraRaises Target$165.00$175.006.1%
2019-8-5Bank of AmericaRaises Target$165.00$170.003%
2019-8-12JPMorgan Chase & Co.Set Price Targetn/a$152.00-
2019-8-1Morgan StanleyInitiatesn/a$170.00-
2019-7-19Credit Suisse GroupSet Price Targetn/a$173.00-
2019-7-19Credit Suisse GroupReiteratesn/a$173.00-
2019-7-18NomuraRaises Target$160.00$165.003.1%
2019-7-18JPMorgan Chase & Co.Initiatesn/a$147.00-
2019-4-17CitigroupReiterates$130.00$140.007.7%
2019-4-11Credit Suisse GroupInitiatesn/a$173.00-
2019-1-23WedbushReiterates$131.00$131.000%
2019-1-23Royal Bank of CanadaReiterates$155.00$160.003.2%
2019-1-23CitigroupRaises Targetn/a$130.00-
(in average)$149.40$157.605.0%
The price target for International Business Machines stock is $157.60, moving in a range between $175.00 and $130.00. In average, analysts' outlook on IBM price target is positive, improving the prediction by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on April, International Business Machines . Unfortunately, reported EPS is not yet available in our database.
IBM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.29n/a
2017-Q32017-10-173.283.30.6%
2017-Q42018-01-185.175.180.2%
2018-Q12018-04-172.42.452.1%
2018-Q22018-07-183.033.081.7%
2018-Q32018-10-163.43.420.6%
2018-Q42019-01-224.814.871.2%
2019-Q12019-04-162.23n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a neutral move of 0.57% to $79,590.00 M USD. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) appreciated a 3.70% to 10.97%.

To have an updated picture of the financial situation of International Business Machines, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual International Business Machines TTM sales up to March 2019 were $78,699.00 and income was $8,640.00 M dollars. If we compare this TTM figures with the last reported annuality, we can review the Big Blue business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, slightly fell a lame -1.12%. Similarly, profit margin (net income/revenues) remained constant at 10.97%.

IBM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$98,370 M-$16,880 M17.2%-
2014$92,793 M-5.67%$12,022 M13.0%-28.78%
2015$81,742 M-11.91%$13,190 M16.1%9.72%
2016$79,920 M-2.23%$11,872 M14.9%-9.99%
2017$79,139 M-0.98%$5,753 M7.3%-51.54%
2018$79,590 M0.57%$8,728 M11.0%51.71%
TTM $78,699 M-1.12%$8,640 M11.0%-1.01%

Quarterly financial results

International Business Machines posted $18,181.00 M in sales for 2019-Q1, a -16.45% decline compared to previous quarter. Reported quarter earnings marked $1,591.00 million with a profit margin of 8.75%. Profit margin stayed stable a -0.22% compared to previous quarter when profit margin was 8.97%. When comparing turnover to same quarter last year, International Business Machines sales marked a fateful drop down and decreased a -4.67%.
IBM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$19,290 M-$2,330 M12.1%-
2017-Q3$19,150 M-0.73%$2,730 M14.3%17.17%
2017-Q4$22,543 M17.72%$-1,054 M-4.7%-138.61%
2018-Q1$19,071 M-15.40%$1,679 M8.8%-259.30%
2018-Q2$20,003 M4.89%$2,404 M12.0%43.18%
2018-Q3$18,755 M-6.24%$2,694 M14.4%12.06%
2018-Q4$21,760 M16.02%$1,951 M9.0%-27.58%
2019-Q1$18,181 M-16.45%$1,591 M8.8%-18.45%

International Business Machines ownership

When you are planning to invest in shares of a company, it's always worth to check its ownership structure.

International Business Machines shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.11% of all shares.

In case of International Business Machines stock, 57.50% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for IBM stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related stocks:

IBMAAPLACNCSCOGOOGL
Market cap$125.7 B$998.7 B$123.0 B$212.3 B$368.4 B
Total shares885.9 M4,520.0 M637.1 M4,280.0 M299.5 M
Float shares884.5 M4,260.0 M635.9 M4,240.0 M601.6 M
  - Institutional holdings (%)57.5%61.0%72.5%77.3%81.0%
  - Insider holdings (%)0.1%0.1%0.2%0.1%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

IBM summary

Friday, September 20th, 2019
Open$143.25
Close$141.88
Day range$141.82 - $143.83
Previous close$142.97
Session gain-0.76%
Average true range$2.30
50d mov avg$140.29
100d mov avg$137.29
200d mov avg$132.88
Daily pattern
Weekly pattern lt01a

International Business Machines performance

To better understand International Business Machines performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare International Business Machines performance to Apple, Accenture, Cisco Systems, Alphabet, HP, Intel, Microsoft, Oracle, and Vmware:
Stock3m6m12m
IBMInternational Bus...3.13%4.16%-1.67%
AAPLApple11.58%16.54%3.09%
ACNAccenture4.00%17.76%12.73%
CSCOCisco Systems-12.48%-4.76%4.95%
GOOGLAlphabet9.28%1.84%4.92%
HPQHP-10.03%-2.89%-26.15%
INTCIntel7.59%-3.54%11.50%
MSFTMicrosoft2.14%19.97%23.96%
ORCLOracle-4.38%2.14%6.33%
SAP-11.05%8.43%-0.41%
VMWVmware-13.02%-17.90%19.37%

International Business Machines competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for International Business Machines. We picked 10 companies as International Business Machines competitors as they are in the same industry or have similar market objectives.

Latest IBM stock news