Traders Purchase Large Volume of Call Options on International Business Machines (NYSE:IBM)

International Business Machines Co. (NYSE:IBM) was the recipient of some unusual options trading activity on Wednesday. Stock traders bought 145,283 call options on the stock. This represents an increase of 210% compared to the typical daily volume of 46,814 call options.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. BNP Paribas started coverage on International Business Machines in a research report on Thursday, May 2nd. They issued an “underperform” rating and a $145.00 target price on the stock. Morgan Stanley decreased their price target on shares of International Business Machines from $186.00 to $179.00 and set an “equal weight” rating on the stock in a research note on Friday, April 26th. BMO Capital Markets dropped their price objective on shares of International Business Machines from $210.00 to $190.00 and set a “market perform” rating for the company in a research note on Thursday, April 25th. Wedbush increased their target price on shares of International Business Machines from $140.00 to $160.00 and gave the stock a “neutral” rating in a research report on Thursday, April 25th. Finally, JPMorgan Chase & Co. decreased their price target on International Business Machines from $190.00 to $185.00 and set a “neutral” rating on the stock in a research report on Thursday, April 25th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, International Business Machines currently has a consensus rating of “Hold” and a consensus price target of $181.29.

International Business Machines Price Performance

International Business Machines stock opened at $169.90 on Thursday. The company has a market capitalization of $156.07 billion, a PE ratio of 19.24, a P/E/G ratio of 4.08 and a beta of 0.74. The company has a current ratio of 1.13, a quick ratio of 1.09 and a debt-to-equity ratio of 2.32. The stock has a 50-day moving average price of $185.11 and a two-hundred day moving average price of $171.88. International Business Machines has a 12 month low of $120.55 and a 12 month high of $199.18.

International Business Machines (NYSE:IBM) last posted its earnings results on Tuesday, April 30th. The technology company reported $1.68 EPS for the quarter, topping the consensus estimate of $1.59 by $0.09. International Business Machines had a net margin of 13.18% and a return on equity of 40.21%. The business had revenue of $14.46 billion for the quarter, compared to the consensus estimate of $14.53 billion. During the same period last year, the company earned $1.36 EPS. The firm’s revenue was up 1.5% compared to the same quarter last year. Analysts expect that International Business Machines will post 9.92 EPS for the current year.

International Business Machines Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 10th. Investors of record on Friday, May 10th will be issued a $1.67 dividend. This represents a $6.68 dividend on an annualized basis and a yield of 3.93%. This is an increase from International Business Machines’s previous quarterly dividend of $1.66. The ex-dividend date of this dividend is Thursday, May 9th. International Business Machines’s dividend payout ratio is presently 75.20%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Schneider Downs Wealth Management Advisors LP boosted its stake in shares of International Business Machines by 4.4% in the 1st quarter. Schneider Downs Wealth Management Advisors LP now owns 1,614 shares of the technology company’s stock valued at $308,000 after purchasing an additional 68 shares during the last quarter. FPC Investment Advisory Inc. acquired a new position in shares of International Business Machines during the first quarter valued at about $26,000. Edmond DE Rothschild Holding S.A. increased its holdings in International Business Machines by 0.3% during the 1st quarter. Edmond DE Rothschild Holding S.A. now owns 43,237 shares of the technology company’s stock worth $8,257,000 after purchasing an additional 123 shares in the last quarter. J.P. Marvel Investment Advisors LLC grew its holdings in International Business Machines by 16.1% during the first quarter. J.P. Marvel Investment Advisors LLC now owns 23,055 shares of the technology company’s stock worth $4,403,000 after buying an additional 3,200 shares in the last quarter. Finally, Bleakley Financial Group LLC lifted its position in shares of International Business Machines by 9.2% during the first quarter. Bleakley Financial Group LLC now owns 32,469 shares of the technology company’s stock valued at $6,200,000 after purchasing an additional 2,727 shares in the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Company Profile

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.