International Business Machines Corporation [NYSE:IBM] will report earnings after markets close on Thursday, January 21st.
IBM Earnings Forecast For The Current Quarter
International Business Machines Corporation [IBM] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $20.67B and an earnings per share of $1.79 for Dec 2020. Looking further ahead, the company is expected to report revenue of $17.55B at an EPS of $1.65 for Mar 2021. The estimates represent downside of 1.40% and 36.79% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
IBM Earnings Estimates For The Current Year
For the financial year, International Business Machines Corporation [NYSE:IBM] is expected to bring in revenue of $73.99B. The returns are nearly $-3.16 billion lower than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 8.43, lower than that of FY19 by -$4.38. Estimates put this year’s earnings growth at -34.20%, 36.80% for the next, and at an annual -1.09% over the next 5-year period. As for sales, forecasts are for a decrease of -4.10% in the current fiscal year and a further 1.40% over the following year.
IBM Price Performance
On Wall Street, International Business Machines Corporation [NYSE:IBM] finished Tuesday’s session up 0.49% at $129.02. The stock went up to $129.59 at the same session while its lowest single day price was $128.0885. In the last five days, it saw a rise of about 0.34%, International Business Machines Corporation shares gained by almost 2.49% since the beginning of the year. However, the share price has dropped to as low as -18.73% below its one year high. On 01/06/21, the company shares recorded $131.88, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $123.04. The company’s shares have declined by -6.72% in the past year. The 50-day SMA achieved is $123.36 while the 200-day SMA is $122.32. Volume gained to 5.4 million from 4.91 million in the previous session.
International Business Machines Corporation [IBM] Valuation Measures
Notably, International Business Machines Corporation [IBM] stock can be classified as a good candidate in the listing of underestimated low-priced Information Technology Services companies to purchase soonest possible with the prevailing 12-month PE ratio of 14.40. The measure means the stock is exchanging at a discount as compared to the 32.18x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 1.54 PS value ratio is reported for the last one year of reported earnings. That is lower than the industry average of 3.04 which means IBM serve an attractive investment opportunity compared to its competitors.
IBM Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 129.02 level, and in case of violation of this particular level, it will cause more drop to 128.21 level. On the upper level, 131.21 is still the key resistance. The stock may increase to the subsequent resistance at 130.40. The Relative Strength Index (RSI) pinned on the 14-day chart is 59.43, implying a neutral technical stance while the MACD stands at 1.51, meaning price will increase in the next trading period. Percent R indicator moved to 32.35%, implying low price movement. Stochastic %K at 62.90% suggest holding the stock.
Is International Business Machines Corporation [NYSE:IBM] a Good Buy Right Now?
It should be noted that IBM technical indicators for short, intermediate as well as long term progress have placed an overall average of 88% as Buy. The average signal changed from 40% Buy in the last week and compares with 56% Buy in the past month. Data from International Business Machines Corporation’s Trend Spotter indicated that the signals were Strengthening. The stock current average is 4.99 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 5.09 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 50% Buy and the 100-day average volume stands at 5.28 million shares.
What is the short interest in International Business Machines Corporation?
Short interest in the International Business Machines Corporation stock has plunged, decreasing by -2.56 million shares to total 24.59 million shares on Dec 30, 2020. The interest had seen shares on Nov 29, 2020 stand at 22.03 million, data from Yahoo Finance shows. The increase of 10.41% suggests the stock saw some increased bearish sentiment. The stock’s days to cover moved to short ratio while the shorted shares account for just 2.76% of the overall float for the stock.
International Business Machines Corporation’s Biggest Shareholders: Who Owns International Business Machines Corporation [IBM]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 70,163,693 shares or roughly 7.87% of the outstanding IBM shares. This means their shares have reduced by -636,586 from the 70,163,693 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, SSgA Funds Management, Inc. updated stake is worth $6,669,541,832. Details in the latest 13F filings reveal that BlackRock Fund Advisors disposed off their -0.10% stake valued at $5,388,282,448 while Geode Capital Management LLC cut theirs at $1,643,717,123. During the last quarter, BlackRock Fund Advisors liquidated -44,242 of its shares in International Business Machines Corporation while Geode Capital Management LLC sold -24,602 shares. The Charles Schwab Investment Managem’s holdings currently number 11,628,307 shares at $1500284169.14. According to the firm’s last 13F report, Northern Trust Investments, Inc. shares in the company at filing stood at 10,999,396 shares, roughly $1,384,603,968.
What are analyst thoughts on International Business Machines Corporation?
Looking forward to the International Business Machines Corporation share price prediction, we can see that analysts, surveyed by FactSet, offer the mean price target for International Business Machines Corporation stock at $139.00 within the next 12 months, which represents almost 7.18 per cent growth from its previous closing price of $129.02. The highest analysts’ target for International Business Machines Corporation stock projections is $165.00 and the lowest one is $115.00. Still, 16 analysts sharing their consensus rating for IBM stock in 2021 agree that it is a Hold.