International Business Machines Corporation (NYSE:IBM) shares fell to a low of $124.57 before closing at $124.70. Intraday shares traded counted 8.29 million, which was -51.55% lower than its 30-day average trading volume of 5.47M. IBM’s previous close was $127.20 while the outstanding shares total 891.38M. The firm has a beta of 1.25, a 12-month trailing P/E ratio of 13.91. The stock’s Relative Strength Index (RSI) is 55.92, with weekly volatility at 2.06% and ATR at 2.66. The IBM stock’s 52-week price range has touched low of $90.56 and a $158.75 high. The stock traded lower over the last trading session, losing -1.97% on 12/07/20.
Investors have identified the Information Technology Services 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 $107.98 billion, 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 14.55 billion on their books with 10.29 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 39.84 billion total, with 37.99 billion as their total liabilities.
IBM were able to record 10.4 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 6.24 billion. In cash movements, the company had a total of 12.34 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 Q3 2020 quarter of the year, International Business Machines Corporation recorded a total of 17.56 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -2.67% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -3.21%.
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 9.13 billion trying to sell their products during the last quarter, with the result yielding a gross income of 8.43 billion. This allows shareholders to hold on to 891.38M with the recently reported earning now reading 1.90 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (2.58 cents a share).
Having a look at the company’s valuation, the company is expected to record 11.56 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.
Is the stock of IBM attractive?
In related news, Director, Gorsky Alex bought 4,232 shares of the company’s stock in a transaction that recorded on Nov 09. The purchase was performed at an average price of 117.86, for a total value of 498,762. As the purchase deal closes, the Director, LIVERIS ANDREW N now bought 2,655 shares of the company’s stock, valued at 299,803. Also, Director, Swedish Joseph bought 2,000 shares of the company’s stock in a deal that was recorded on Oct 30. The shares were cost at an average price of 111.01 per share, with a total market value of 222,020. Following this completion of disposal, the Director, FARR DAVID N now holds 450 shares of the company’s stock, valued at 48,545. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
5 out of 16 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on International Business Machines Corporation. 2 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 $137.13.