Shares of International Business Machines Corporation (NYSE:IBM) recorded 1.10% gain during trading session on May 16th, 2019. The script traded as low as $134.64 and last traded at $135.88. 2.93 million shares changed exchanged hands during trading, an increase of 18.56% from the 30-day average session volume of 3.60M shares. The firm had previously closed at $134.40. The company has $886.77M outstanding shares, a price-to-earnings ratio of 11.53, price-to-earnings-growth ratio of 1.53and a beta of 1.22. The company has a RSI of 43.64, ATR of 2.43 and a volatility of 1.86% this week. IBM has a 52 week low price of $105.94 and a 52 week high price of $154.36.
Investors have identified the tech company International Business Machines Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 120.49B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
International Business Machines Corporation (IBM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For IBM, the company has in raw cash 17.27 billion on their books with 10.25 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 52.71 billion total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
IBM were able to record 4.22 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 5.67 billion. In cash movements, the company had a total of 4.76 billion as operating cash flow.
Potential earnings growth for International Business Machines Corporation (IBM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, International Business Machines Corporation recorded a total of 18.18 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.05% coming in sequential stages and their sales for the third quarter reducing by -0.20%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 10.14 billion trying to sell their products during the last quarter, with the result yielding a gross income of 8.04 billion. This allows shareholders to hold on to 886.77M with the revenue now reading 1790 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (3.51 cents a share).
Is the stock of IBM attractive?
Having a look at the company’s valuation, the company is expected to record 14.12 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on IBM sounds very interesting.
In related news, VP, Controller Del Bene Robert F sold 124 shares of the company’s stock in a transaction that recorded on March 7th, 2019. The sale was performed at an average price of 135.51, for a total value of 16,758. As the sale deal closes, the Senior Vice President Del Bene Robert F now sold 13,000 shares of the company’s stock, valued at 1,807,093. Also, Senior Vice President Gherson Diane J sold 2,851 shares of the company’s stock in a deal that was recorded on February 6th, 2019. The shares were sold at an average price of 136.05 per share, with a total market value of 20,266. Following this completion of acquisition, the Senior Vice President now holds 2,903 shares of the company’s stock, valued at 392,747. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
4 out of 21 analysts covering the stock have rated it a Buy, while 13 have maintained a Hold recommendation on International Business Machines Corporation stock. 0 analysts has assigned a Sell rating on the IBM stock. The 12-month mean consensus price target for the company’s shares has been set at $147.06.