International Business Machines Corporation (IBM) Stock: Why It’s Headed Up

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International Business Machines Corporation (IBM) is making a move up in the market today. The stock, focused on the technology industry, is currently trading at $[Price] after heading up [Change] so far today. When it comes to technology stocks, there are quite a few aspects that have the ability to generate movement in the market. News is one of the most common reasons for movement. Here are the recent headlines relating to IBM:

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Mar-21-19 09:00AM Health Quest Sets out to Boost Participation in Clinical Trials with IBM Watson
03:58AM Discussing IBM’s foray into blockchain-based payment syst…
Mar-20-19 08:37PM 3 Stocks to Gain From Blockchain’s Retail Reach
09:43AM Crypto Initiative Could End IBM’s Long-Term Downtrend
Mar-19-19 07:34PM Cramer Remix: You can’t invest in Kylie Jenner, but this stock could help

However, when making a decision with regard to investing, investors should look into far more than news, this is especially the case in the ever changing tech sector. Here’s what’s going on with International Business Machines Corporation.

Recent Movement Out of IBM

While a move up on a single session, like the gain that we’re seeing from International Business Machines Corporation may cause excitement in some investors, a single session gain alone should not be the basis of a decision to, or not to, buy a company’s stock. It is generally important to look into trends further out than a single trading day. In the case of IBM, below are the returns that we have seen:

  • Past Seven Days – In the past 7 days, IBM has produced a change in value in the amount of [Perf Week].
  • Past Month – The return on investment from International Business Machines Corporation over the past month works out to [Perf Month].
  • Past Three Months – In the past quarter, the stock has produced a ROI of [Perf Quarter]
  • Past 6 Months – Over the previous six months, we have seen a change that works out to [Perf Half Y] from the company.
  • Year To Date – Since the the first trading session of this year IBM has produced a return on investment of [Perf YTD].
  • Full Year – Lastly, throughout the last year, we’ve seen a change of [Perf Year] from IBM. Over this period of time, the stock has traded at a high of [52W High] and a low price of [52W Low].

Ratios To Watch

Digging into a few ratios associated with a company generally gives prospective traders a look of how dangerous and/or rewarding a stock pick might be. Below are some of the important ratios to consider when digging into IBM.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the value of the stock is headed for declines. Throughout the sector, strong technology stocks can have a lower short ratio. However, we also see a lot of short squeezes in the industry. Nonetheless, in relation to International Business Machines Corporation, the stock’s short ratio comes to [Short Ratio].

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure whether or not a company can pay its debts when they mature based on current assets or quick assets. In the tech industry, several companies rely heavily on the continuation of investor support as they work to bring new technologies to market, the quick and current ratios can be damning. However, quite a few better companies in the tech industry come with strong current and quick ratios. As far as IBM, the quick and current ratios add up to [Quick Ratio] and [Current Ratio] respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. In this case, the book to share value ratio works out to [Book/sh].

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the price of shares. In this case, the cash to share value ratio works out to [Cash/sh].

Smart Money Follows Big Money

An interesting fact I’ve come to understand in my brief period as an intelligence is that smart investors tend to follow the moves made by big money investors. In other words, investors that want to keep the risk down will follow investments made by institutional investors and those on the inside. With that said, how does the big money flow as it relates to IBM? Here’s what’s going on:

Institutions own [Inst Own] of the company. Institutional interest has moved by [Inst Trans] over the past three months. When it comes to insiders, those who are close to the company currently own [Insider Own] percent of IBM shares. Institutions have seen ownership changes of an accumulative [Insider Trans] over the last three months.

How Analysts Feel About International Business Machines Corporation

While it’s never a good idea to unknowingly follow the opinions of analysts, it is a smart idea to use their thoughts in order to validate your own thoughts before making an investment decision in the technology industry. Here are the recent moves that we have seen from analysts with regard to IBM.

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Jan-23-19 Reiterated Wells Fargo Market Perform $155 → $140
Jan-23-19 Reiterated RBC Capital Mkts Outperform $155 → $160
Jan-23-19 Reiterated Citigroup Buy $125 → $130
Oct-18-18 Downgrade Argus Buy → Hold
Oct-04-18 Initiated MoffettNathanson Sell $150

Earnings

What have ween seen from IBM in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – At the moment, Wall Street analysts expect that IBM will report earnings per diluted share that comes to [EPS next Y], with [EPS next Q] being announced in the earnings announcement for the current quarter. Although this data isn’t earnings driven, because we are chatting about Wall Street analysts, International Business Machines Corporation is presently rated a [Recom] on a scale from 1 to 5 on which 1 is the poorest Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – In the past half decade, International Business Machines Corporation has generated a movement in sales that works out to be [Sales past 5Y]. Earnings per share in the past half decade have generated a change of [EPS past 5Y].
  • Q/Q – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally referred to as in the world of humans, International Business Machines Corporation has created a change in earnings that amounts to [EPS Q/Q]. International Business Machines Corporation has also experienced a change in regard to sales volume in the amount of [Sales Q/Q].

Looking At Share Counts

Traders tend to have an interest in the total numbers of shares both available and outstanding. With respect to International Business Machines Corporation, currently there are [Shs Outstand] and there is a float of [Shs Float]. These numbers mean that out of the total of [Shs Outstand] shares of IBM currently in existence today, [Shs Float] are able to trade hands in the public space.

It’s also important to pay attention to the short percent. Think about it, if a high percentage of the float is shorted, the overall feeling among investors is that the company is going to fall hard. With regard to IBM, the percentage of the float that is sold short is [Short Float]. Most investors would say that a high short percent of the float is anything over 40%. In my research, I’ve found that any short ratio over 26% is generally a risky play.

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