Short Interest in IBM (NYSE:IBM) Decreases By 5.6%

IBM (NYSE:IBM) was the target of a significant drop in short interest in September. As of September 15th, there was short interest totalling 15,200,000 shares, a drop of 5.6% from the August 15th total of 16,100,000 shares. Based on an average daily trading volume, of 3,740,000 shares, the days-to-cover ratio is presently 4.1 days. Approximately 1.7% of the shares of the stock are sold short.

IBM stock traded up $2.18 during mid-day trading on Monday, reaching $145.42. The company’s stock had a trading volume of 4,003,520 shares, compared to its average volume of 3,824,221. The company has a market cap of $127.17 billion, a price-to-earnings ratio of 10.53, a price-to-earnings-growth ratio of 2.24 and a beta of 1.31. The business’s 50 day moving average price is $137.62 and its 200 day moving average price is $139.12. The company has a current ratio of 1.83, a quick ratio of 1.79 and a debt-to-equity ratio of 3.51. IBM has a 12 month low of $105.94 and a 12 month high of $154.36.

IBM (NYSE:IBM) last issued its earnings results on Wednesday, July 17th. The technology company reported $3.17 earnings per share for the quarter, topping the Zacks’ consensus estimate of $3.06 by $0.11. The business had revenue of $19.20 billion during the quarter, compared to the consensus estimate of $19.20 billion. IBM had a return on equity of 69.56% and a net margin of 11.22%. The firm’s revenue for the quarter was down 4.0% on a year-over-year basis. During the same period in the previous year, the company posted $3.08 earnings per share. As a group, equities analysts expect that IBM will post 12.8 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 10th. Shareholders of record on Friday, August 9th were issued a $1.62 dividend. The ex-dividend date of this dividend was Thursday, August 8th. This represents a $6.48 dividend on an annualized basis and a yield of 4.46%. IBM’s payout ratio is currently 46.92%.

Several research firms recently weighed in on IBM. Wells Fargo & Co raised their price objective on IBM from $140.00 to $147.00 and gave the company a “market perform” rating in a research note on Tuesday, August 6th. Tigress Financial reiterated a “hold” rating on shares of IBM in a research report on Friday, July 26th. ValuEngine upgraded IBM from a “sell” rating to a “hold” rating in a research report on Wednesday, September 4th. Nomura increased their target price on IBM from $165.00 to $175.00 and gave the company a “buy” rating in a research report on Monday, August 5th. Finally, Evercore ISI assumed coverage on IBM in a research report on Wednesday, June 5th. They issued an “outperform” rating and a $150.00 target price for the company. One equities research analyst has rated the stock with a sell rating, thirteen have given a hold rating and eight have assigned a buy rating to the stock. IBM currently has an average rating of “Hold” and an average target price of $155.29.

Hedge funds have recently modified their holdings of the business. Next Capital Management LLC grew its stake in IBM by 50.0% in the second quarter. Next Capital Management LLC now owns 213 shares of the technology company’s stock valued at $29,000 after acquiring an additional 71 shares during the period. Motco grew its stake in IBM by 15.6% in the second quarter. Motco now owns 1,665 shares of the technology company’s stock valued at $230,000 after acquiring an additional 225 shares during the period. Sonora Investment Management LLC grew its stake in IBM by 11.5% in the second quarter. Sonora Investment Management LLC now owns 1,802 shares of the technology company’s stock valued at $248,000 after acquiring an additional 186 shares during the period. Westside Investment Management Inc. acquired a new stake in IBM in the second quarter valued at approximately $57,760,000. Finally, Wealthcare Advisory Partners LLC grew its stake in IBM by 16.0% in the first quarter. Wealthcare Advisory Partners LLC now owns 1,977 shares of the technology company’s stock valued at $279,000 after acquiring an additional 273 shares during the period. Institutional investors and hedge funds own 55.36% of the company’s stock.

About IBM

International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers a portfolio of enterprise artificial intelligence platforms, such as analytics and data management platforms, cloud data services, talent management, and industry solutions primarily under the Watson Platform, Watson Health, and Watson Internet of Things names.

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