More than 63% of International Business Machines (IBM) shares are held by institutional investors. These include mutual funds, pension funds, insurance companies, and other large financial entities that manage money for various clients. For a deeper dive into IBM's current ownership and related insights, take a look at our latest analysis.
Key Points
Investing in IBM stock presents intriguing possibilities, especially when considering its robust financial performance. With a net income of
6.9B and a gross profit of
35.4B, IBM demonstrates a strong capacity to generate revenue, which can be appealing for investors seeking stability in the Information Technology Services sector. Despite a PEG ratio of 7.42, which suggests the stock might be overvalued relative to its earnings growth, the company's solid return on equity of 26.73% indicates efficient management and potential for long-term growth.
Wild options for International Business investors
The performance of International Business Machines in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence International Business'
stock prices. When investing in International Business, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, International Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as International Business carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of International Business earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. International Business dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. International one year expected dividend income is about USD2.22 per share.
At this time, International Business'
Dividends Paid is very stable compared to the past year. As of the 23rd of February 2025,
Dividend Payout Ratio is likely to grow to 0.76, while
Dividend Yield is likely to drop 0.02.
Investing in stocks that pay
dividends, such as stock of International Business Machines, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in International Business must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for International Business. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is International Business's Liquidity
International Business
financial leverage refers to using borrowed capital as a funding source to finance International Business Machines ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. International Business financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to International Business' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of International Business' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between International Business's total debt and its cash.
What do experts say about International?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusBreaking down International Business Further
International Business Machines has a total of 924.64 Million
outstanding shares. Over half of International Business' outstanding shares are owned by
outside corporations. These outside corporations are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Please note that on January 9, 2025, Representative
Lloyd Doggett of US Congress acquired under $15k worth of International Business's common stock.
Ownership Breakdown
Retail Investors36.77% | | Institutions63.13% |
| Retail Investors | 36.77 |
| Insiders | 0.1 |
| Institutions | 63.13 |
"Time in the market beats timing the market," and for IBM investors, this adage rings particularly true. With a robust operating income of $7.5 billion and a solid revenue of $61.86 billion, IBM continues to demonstrate its financial resilience. Despite a modest five-year return of 4.80%, the company's low beta of 0.71 suggests a relatively stable investment, less susceptible to market volatility. While the PEG ratio of 7.42 indicates a premium valuation, the company's strategic focus on IT services and software offers promising growth avenues. As IBM navigates the evolving tech landscape, investors may find compelling opportunities in its consistent dividend yield of 2.96%..
International is expecting lower volatility in March
International Business Machines (IBM) is expecting a more stable trading environment by March, despite its recent coefficient of variation being an unusually high -7225.65. This indicates significant stock fluctuations, but the anticipated decrease in volatility suggests potential stabilization ahead. Investors might see this as a good time to reevaluate their positions, as a steadier market could provide clearer insights into IBM's performance and future outlook. IBM currently shows low volatility, with a skewness of -1.18 and kurtosis of 4.27. Understanding these volatility trends can help investors time their market moves.
During bear markets, increased volatility can affect IBM's stock price, prompting investors to adjust their portfolios by acquiring different assets as prices drop.Considering the current landscape for International Business Machines (IBM), it's crucial to weigh the potential risks and rewards before making a decision. With an analyst consensus leaning towards a "Buy" and a possible upside price of
229.21, there seems to be room for growth. However, the presence of three strong sell recommendations suggests some caution is warranted. IBM's valuation real value stands at
209.72, indicating that the stock might be slightly undervalued at present. Ultimately, whether to hold or exit should depend on your investment strategy and risk tolerance, but the data suggests there could still be opportunities for those willing to stay the course..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of International Business Machines. Please refer to our
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