IBM (IBM, $115.40) Will Buy Back an Additional $4 Billion Shares and Will Pay Out $1.57 Per-Share Dividends
International Business Machines Corporation (IBM) announced that it will buy back $4 billion of its shares from investors, in addition to the previously scheduled $1.4 billion repurchase.
The information technology/cloud computing behemoth also mentioned plans to halt share buybacks in 2020 and 2021 to stock up enough cash for its $33 billion acquisition of open-source cloud software firm Red Hat. The acquisition deal, which would be the biggest for IBM so far, might close next year - subject to regulatory & shareholder approvals.
Shortly after announcing its Red Hat deal, IBM also confirmed that it will pay out, on December 10, a cash dividend of $1.57 per share. Since 1916, the company has been distributing dividends every quarter to shareholders.
IBM sees MACD Histogram crosses below signal line
IBM saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on March 15, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on IBM as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
IBM moved below its 50-day moving average on April 10, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IBM crossed bearishly below the 50-day moving average on April 12, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IBM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for IBM entered a downward trend on April 16, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where IBM's RSI Oscillator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
IBM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.474) is normal, around the industry mean (23.152). P/E Ratio (22.546) is within average values for comparable stocks, (38.127). IBM's Projected Growth (PEG Ratio) (4.232) is very high in comparison to the industry average of (1.612). Dividend Yield (0.036) settles around the average of (0.023) among similar stocks. P/S Ratio (2.739) is also within normal values, averaging (51.082).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. IBM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of various computer products through the use of advanced information technology
Industry InformationTechnologyServices