International Business Machines Target of Unusually High Options Trading (NYSE:IBM)

International Business Machines Co. (NYSE:IBM) saw unusually large options trading on Friday. Investors acquired 66,764 call options on the stock. This is an increase of approximately 107% compared to the average daily volume of 32,299 call options.

Hedge Funds Weigh In On International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Compass Financial Services Inc purchased a new position in International Business Machines in the 4th quarter valued at about $26,000. Hazlett Burt & Watson Inc. boosted its position in International Business Machines by 1,054.5% during the 3rd quarter. Hazlett Burt & Watson Inc. now owns 127 shares of the technology company’s stock valued at $29,000 after purchasing an additional 116 shares during the period. Hara Capital LLC bought a new stake in International Business Machines in the third quarter valued at $29,000. Vision Financial Markets LLC bought a new stake in International Business Machines in the 4th quarter valued at about $31,000. Finally, Avondale Wealth Management boosted its position in International Business Machines by 56.0% during the 4th quarter. Avondale Wealth Management now owns 156 shares of the technology company’s stock worth $34,000 after acquiring an additional 56 shares during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Price Performance

Shares of IBM stock traded down $0.58 during mid-day trading on Friday, reaching $252.86. The stock had a trading volume of 1,336,935 shares, compared to its average volume of 4,819,674. The company has a current ratio of 1.04, a quick ratio of 1.00 and a debt-to-equity ratio of 1.82. The business has a 50-day simple moving average of $229.26 and a 200 day simple moving average of $216.45. International Business Machines has a 12-month low of $162.62 and a 12-month high of $265.72. The company has a market cap of $233.81 billion, a P/E ratio of 39.45, a price-to-earnings-growth ratio of 5.63 and a beta of 0.76.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, January 29th. The technology company reported $3.92 earnings per share for the quarter, topping the consensus estimate of $3.77 by $0.15. International Business Machines had a return on equity of 38.99% and a net margin of 9.60%. On average, sell-side analysts anticipate that International Business Machines will post 10.73 earnings per share for the current year.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Investors of record on Monday, February 10th will be given a dividend of $1.67 per share. The ex-dividend date is Monday, February 10th. This represents a $6.68 dividend on an annualized basis and a yield of 2.64%. International Business Machines’s dividend payout ratio (DPR) is currently 104.21%.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Royal Bank of Canada reaffirmed an “outperform” rating and set a $250.00 target price on shares of International Business Machines in a report on Monday, January 27th. JPMorgan Chase & Co. upped their target price on International Business Machines from $233.00 to $244.00 and gave the stock a “neutral” rating in a research note on Thursday, January 30th. Bank of America upped their price target on shares of International Business Machines from $260.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, January 30th. UBS Group lifted their price objective on International Business Machines from $150.00 to $160.00 and gave the stock a “sell” rating in a report on Tuesday, January 14th. Finally, Wedbush assumed coverage on International Business Machines in a research note on Monday. They issued an “outperform” rating on the stock. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, International Business Machines presently has a consensus rating of “Hold” and a consensus price target of $225.53.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.