IBM stock: buy or sell

IBM stock price: $143.55 3.90% At close on Apr 21st, 2021

Updated on:
Apr 22nd, 2021

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IBM stock brief

  • IBM closed on Wednesday at $143.55 after exploding a 3.90%.
  • The price is currently above the upper Bollinger band, which is usually an indicator of a near-term correction
  • IBM posted its earnings report last Monday
  • BMO Capital Markets, Credit Suisse Group, Morgan Stanley and Stifel Nicolaus posted strong buy ratings for IBM on Tuesday, with an average forecast of $154.50
  • International Business Machines Corporation provides integrated solutions and services worldwide.

Should I buy IBM stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $IBM stock a buy?

Currently, IBM stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $IBM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell IBM stock?

"To sell or not to sell", if you are holding IBM stock?. Trading strategies give us the ability us to avoid rash decisions based on our feelings or the buzz that surrounds the market. We like very simple strategies to guide us on when is a good time to sell our shares. Be aware that these strategies should not be used for shorting IBM stock

A guiding principle is that you should not mantain an open trade that generates losses greater than those expected upon purchase. When to sell your stock should always be dictated by the stop-loss (automatic or manual)

Is it time to sell IBM stock?

In the current situation of IBM there is not any eligible sell setup, so IBM stock holders with operations in green can keep their positions

IBM ratings

In the last month, 6 brokerage ratings were published for IBM

IBM analysts' ratings - Last 30 days
Brokerage firmRating
Apr 8th, 2021
Morgan Stanley
Apr 14th, 2021
Morgan Stanley
Apr 20th, 2021
BMO Capital Markets
Credit Suisse Group Buy
Morgan Stanley
Stifel Nicolaus Strong buy

IBM stock analysis

SMAs overview

IBM stock SMAs chart

Supports and resistances

The current resistance levels are:

  • R1: $144.62 (0.75% above)
  • R2: $144.69 (0.79% above)
  • R3: $145.48 (1.34% above)
  • The current support levels are:

  • S1: $143.20 (-0.24% below)
  • S2: $143.03 (-0.36% below)
  • S3: $142.93 (-0.43% below)
  • Bollinger bands

    When the price moves out of the band (above the upper line or below the lower line) it tells that the price action is currently maintaining a very strong trend and therefore can correct the trend to the average. For this case, the price is over the upper band, which should mean a short-term correction (at least) until it is below the band

    IBM stock Bollinger Bands chart

    Relative strength index

    Climbed above the overbought line Wednesday, marking a reading of 73.4. Breaking through above the level of 70 is not a sell signal, as stock price can rally during several weeks being above the level of 70

    IBM stock RSI chart

    IBM stock price history

    IBM started trading priced at an adjusted price1 of $1.88 on Jan 1962. Since then, IBM stock surged by 7,535.64%, with an average of 127.72% per year. If you had invested thousand dollars in IBM stock at that time, it would be valued $76,356.38 today.

    1: Adjusted price after possible price splits or reverse-splits

    IBM stock price history chart

    Price target for IBM stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis forecasting how a particular stock will performance in the future.

    Along with buy or sell recommendations, financial institutions release their price target based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental data by the company, and usually. Again, these targets are not direct recommendations for small traders and should not be trusted blindly.

    The average price target for IBM stock calculated from the table below is $153.00. IBM closed at $143.55 on Wednesday, that is a 6.18% than the predicted price.

    IBM stock price predictions
    Brokerage firmPrice target
    Apr 8th, 2021
    Morgan Stanley $140.00$150.00
    Apr 14th, 2021
    Morgan Stanley $140.00$150.00
    Apr 20th, 2021
    BMO Capital Markets $138.00$150.00
    Credit Suisse Group $160.00$165.00
    Morgan Stanley $150.00$152.00
    Stifel Nicolaus $147.00$151.00

    Earnings and financials

    International Business Machines Corporation ($IBM) came out with earnings of $1.77 per share last Monday, slightly upping the analysts consensus estimate of $1.63 per share. This Q1 report represents an earnings surprise of 8.59%. On the contrary, the company said revenue for this quarter was $17.7 billion in line with analysts' estimates.

    In comparing, the EPS for the same quarter last year was $1.84, so current EPS means a reduction of -3.80%. Looking at revenues, figures just changed compared to $175.7B same quarter a year ago.

    IBM ($IBM) is hosting the quarterly earnings call next July.

    IBM performance

    IBM performance compared
    Company1m3m6m
    IBM ($IBM) 10.10% 11.80% 23.20%

    Important note:
    The comments written in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not have an understanding of the individual circumstances of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for informational motives only

    IBM summary

    Wednesday, April 21st, 2021
    Open$138.06
    Close$143.55
    Day range$137.71 - $143.73
    Previous close$138.16
    Session gain3.90%
    Average true range$2.73
    50d mov avg$127.85
    100d mov avg$125.42
    200d mov avg$121.67
    Earnings dateJuly 19th, 2021

    Frequently asked questions

    What is IBM stock symbol?

    International Business Machines Corporation is a public company trading in the US stock market with the IBM symbol

    Is IBM stock a buy or sell?

    IBM received 6 ratings in the last 30 days: 2 bullish, 0 bearish and 0 neutral.

    Will IBM go up?

    IBM had different price predictions posted by analysts in the last 4 weeks setting the target price to $153.00. That is a 6.58% than the last price ($143.55).