IBM stock: buy or sell?
September 20th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-6||Wells Fargo & Co||n/a||Market Perform|
|2019-8-5||Bank of America||n/a||Buy|
|2019-8-12||JPMorgan Chase & Co.||n/a||Neutral|
|2019-7-19||Credit Suisse Group||n/a||Buy|
|2019-7-19||Credit Suisse Group||n/a||Buy|
|2019-7-18||JPMorgan Chase & Co.||n/a||Neutral|
|2019-4-11||Credit Suisse Group||n/a||Outperform|
|2019-1-23||Wells Fargo & Co||n/a||Hold|
|2019-1-23||Royal Bank of Canada||Outperform||Outperform|
IBM stock analysis
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%).
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 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 $157.60Nobody 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-6||Wells Fargo & Co||Reiterates||$140.00||$147.00||5%|
|2019-8-5||Bank of America||Raises Target||$165.00||$170.00||3%|
|2019-8-12||JPMorgan Chase & Co.||Set Price Target||n/a||$152.00||-|
|2019-7-19||Credit Suisse Group||Set Price Target||n/a||$173.00||-|
|2019-7-19||Credit Suisse Group||Reiterates||n/a||$173.00||-|
|2019-7-18||JPMorgan Chase & Co.||Initiates||n/a||$147.00||-|
|2019-4-11||Credit Suisse Group||Initiates||n/a||$173.00||-|
|2019-1-23||Royal Bank of Canada||Reiterates||$155.00||$160.00||3.2%|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter posting its last earnings report on April, International Business Machines . Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%.
|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 M||0.57%||$8,728 M11.0%||51.71%|
|TTM||$78,699 M||-1.12%||$8,640 M11.0%||-1.01%|
Quarterly financial resultsInternational 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%.
|2017-Q2||$19,290 M||-||$2,330 M12.1%||-|
|2017-Q3||$19,150 M||-0.73%||$2,730 M14.3%||17.17%|
|2017-Q4||$22,543 M||17.72%||$-1,054 M-4.7%||-138.61%|
|2018-Q1||$19,071 M||-15.40%||$1,679 M8.8%||-259.30%|
|2018-Q2||$20,003 M||4.89%||$2,404 M12.0%||43.18%|
|2018-Q3||$18,755 M||-6.24%||$2,694 M14.4%||12.06%|
|2018-Q4||$21,760 M||16.02%||$1,951 M9.0%||-27.58%|
|2019-Q1||$18,181 M||-16.45%||$1,591 M8.8%||-18.45%|
International Business Machines ownershipWhen 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:
|Market cap||$125.7 B||$998.7 B||$123.0 B||$212.3 B||$368.4 B|
|Total shares||885.9 M||4,520.0 M||637.1 M||4,280.0 M||299.5 M|
|Float shares||884.5 M||4,260.0 M||635.9 M||4,240.0 M||601.6 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$141.82 - $143.83|
|Average true range||$2.30|
|50d mov avg||$140.29|
|100d mov avg||$137.29|
|200d mov avg||$132.88|
International Business Machines performanceTo 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:
International Business Machines competitorsOne 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.
- Apple (AAPL)
- Accenture (ACN)
- Cisco Systems (CSCO)
- Alphabet (GOOGL)
- HP (HPQ)
- Intel (INTC)
- Microsoft (MSFT)
- Oracle (ORCL)
- Vmware (VMW)
Latest IBM stock news
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