Is an Investment in International Business Machines Corp (NYSE:IBM) as Risky as Its Decline Suggests?

[Biz Journals] International Business Machines Corp (NYSE:IBM)(TREND ANALYSISA computer that can help pinpoint a rare disease might sound like a development out of Star Wars.
But that’s the hope of a new collaboration between Boston Children’s Hospital and supercomputer IBM Watson, which has a health division based out of Cambridge.

“We’re basically helping and enabling clinicians to diagnose and treat patients,” said Hany Saleeb, director of partnerships and solutions for IBM Watson. “As IBM, we won’t directly treat patients, but working with Children’s Hospital in the area of rare diseases, we’re enabling them to create and gain insight to make better decisions.”

The collaboration is a departure from the typical collaborations IBM Watson Health does around adult health care, and is also the technology’s first foray into rare diseases.

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International Business Machines Corp (NYSE:IBM) stock is currently trading 23.25% below its 52-week-high, 0.32% above its 52-week-low. The 1-year stock price history is in the range of $134.88 – $176.3. International Business Machines Corp (IBM) has a price to earnings ratio of 9.41 versus Technology sector average of 21.27. IBM stock price has underperformed the S&P 500 by 15.6%. The Computer Services company is currently valued at $131.27 billion and its share price closed the last trading session at $135.31. The stock has a 50-day moving average of $144.87 and a 200-day moving average of $158.04.

International Business Machines Corp (IBM) current short interest stands at 25.33 million shares. It has decreased by 4% from the same period of last month. Around 3% of the company’s shares, which are float, are short sold. With a 10-days average volume of 4.71 million shares, the number of days required to cover the short positions stand at 5.4 days.

IBM reported last quarter earnings on October 19. The Computer Services company announced earnings per share of $3.34 against a consensus Street estimate of $3.33, beating the average estimate by $0.01. This corresponds to a decrease of $0.98 compared to the same quarter of the previous fiscal year.

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There are currently twenty-five analysts that cover International Business Machines Corp stock. Of those twenty-five, six have a Buy rating, fourteen have a Hold rating and five have a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $148.9.

A recent analyst activity consisted of Citigroup reiterating their Neutral stance on October 21. Citigroup decreased price target from $170 to $155. This corresponds to a 14.55% upside from the last closing price. On the date of report, the stock closed at $139.61.

BMO Capital reiterated their Market Perform stance on October 20, and decreased their price target from $165 to $155. This corresponds to a 14.55% upside from the last closing price. On the date of report, the stock closed at $139.33.

Another research firm was Deutsche Bank who reiterated their Hold stance on October 20. Deutsche Bank decreased price target from $160 to $150. This translates to a 10.86% upside from the last closing price. On the date of report, the stock closed at $139.33.

Company snapshot

International Business Machines Corporation (IBM) provides computer solutions through the use of advanced information technology. The Company’s solutions include technologies, systems, products, services, software, and financing. IBM offers its products through its global sales and distribution organization, as well as through a variety of third party distributors and resellers.

Is an Investment in International Business Machines Corp (NYSE:IBM) as Risky as Its Decline Suggests? was last modified: November 10th, 2015 by Steven Finley