Stock Traders Buy High Volume of Call Options on International Business Machines (NYSE:IBM)

International Business Machines Co. (NYSE:IBM) was the recipient of some unusual options trading on Thursday. Stock investors bought 41,952 call options on the company. This is an increase of approximately 44% compared to the typical daily volume of 29,085 call options.

Institutional Trading of International Business Machines

Institutional investors and hedge funds have recently bought and sold shares of the stock. Heritage Wealth Management Inc. purchased a new position in International Business Machines during the 2nd quarter valued at about $1,468,000. Lazari Capital Management Inc. boosted its holdings in International Business Machines by 9.7% in the second quarter. Lazari Capital Management Inc. now owns 1,973 shares of the technology company’s stock worth $341,000 after acquiring an additional 174 shares in the last quarter. Sanctuary Advisors LLC purchased a new stake in shares of International Business Machines in the second quarter worth $40,068,000. Creekside Partners bought a new position in shares of International Business Machines during the second quarter valued at $584,000. Finally, Farmers National Bank raised its holdings in International Business Machines by 11.0% in the second quarter. Farmers National Bank now owns 22,715 shares of the technology company’s stock worth $3,929,000 after buying an additional 2,247 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Stock Performance

International Business Machines stock opened at $214.79 on Friday. The company has a quick ratio of 1.08, a current ratio of 1.12 and a debt-to-equity ratio of 2.20. The firm has a fifty day simple moving average of $192.83 and a two-hundred day simple moving average of $183.40. The company has a market capitalization of $197.85 billion, a PE ratio of 24.33, a P/E/G ratio of 4.67 and a beta of 0.70. International Business Machines has a twelve month low of $135.87 and a twelve month high of $216.09.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, July 24th. The technology company reported $2.43 EPS for the quarter, beating analysts’ consensus estimates of $2.16 by $0.27. The company had revenue of $15.77 billion during the quarter, compared to analyst estimates of $15.62 billion. International Business Machines had a net margin of 13.52% and a return on equity of 40.59%. The firm’s revenue was up 1.9% compared to the same quarter last year. During the same period in the prior year, the business posted $2.18 EPS. Research analysts expect that International Business Machines will post 10.1 EPS for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 10th. Investors of record on Friday, August 9th were paid a $1.67 dividend. This represents a $6.68 dividend on an annualized basis and a yield of 3.11%. The ex-dividend date of this dividend was Friday, August 9th. International Business Machines’s payout ratio is currently 75.65%.

Analysts Set New Price Targets

IBM has been the subject of several analyst reports. Hsbc Global Res raised shares of International Business Machines to a “moderate sell” rating in a report on Friday, July 26th. Jefferies Financial Group increased their target price on shares of International Business Machines from $190.00 to $200.00 and gave the stock a “hold” rating in a research note on Thursday, July 25th. StockNews.com upgraded International Business Machines from a “hold” rating to a “buy” rating in a research report on Wednesday, June 19th. UBS Group lifted their price objective on International Business Machines from $130.00 to $145.00 and gave the company a “sell” rating in a research note on Wednesday, September 4th. Finally, Stifel Nicolaus upped their target price on International Business Machines from $190.00 to $205.00 and gave the stock a “buy” rating in a research note on Thursday, July 25th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $188.60.

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.