Are International Business Machines Corporation (NYSE:IBM) shares too expensive at this price?

In the latest session, International Business Machines Corporation (NYSE: IBM) closed at $149.10 up 1.65% from its previous closing price of $146.68. In other words, the price has increased by $+2.42 from its previous closing price. On the day, 7060544 shares were traded. IBM stock price reached its highest trading level at $149.35 during the session, while it also had its lowest trading level at $147.02.

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Ratios:

For a deeper understanding of International Business Machines Corporation’s stock, let’s take a closer look at its various ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 13.94 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 78.56. For the most recent quarter (mrq), Quick Ratio is recorded 0.90 and its Current Ratio is at 1.00. In the meantime, Its Debt-to-Equity ratio is 2.53 whereas as Long-Term Debt/Eq ratio is at 2.24.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, UBS on October 20, 2022, Reiterated its Sell rating but revised its target price to $111 from $112 previously.

On October 20, 2022, Evercore ISI reiterated its In-line rating and also lowered its target price recommendation from $125 to $135.

Credit Suisse reiterated its Outperform rating for the stock on October 20, 2022, while the target price for the stock was revised from $158 to $155.

Insider Transactions:

Additionally, insider trades can be beneficial to investors who want to learn what the management thinks about stock prices in the future. A recent insider transaction in this stock occurred on Nov 22 when Del Bene Robert F sold 3,000 shares for $148.36 per share. The transaction valued at 445,088 led to the insider holds 14,553 shares of the business.

FARR DAVID N bought 1,000 shares of IBM for $125,000 on Sep 15. The Director now owns 1,000 shares after completing the transaction at $125.00 per share. On Jun 02, another insider, Del Bene Robert F, who serves as the VP, Controller of the company, sold 1,600 shares for $139.04 each. As a result, the insider received 222,465 and left with 15,062 shares of the company.

Valuation Measures:

As of this moment, International’s Price-to-Earnings (P/E) ratio for their current fiscal year is 92.04, and their Forward P/E ratio for the next fiscal year is 15.47. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 9.99. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.20 while its Price-to-Book (P/B) ratio in mrq is 6.71.

Stock Price History:

Over the past 52 weeks, IBM has reached a high of $148.31, while it has fallen to a 52-week low of $114.56. The 50-Day Moving Average of the stock is 130.59, while the 200-Day Moving Average is calculated to be 132.03.

Shares Statistics:

For the past three months, IBM has traded an average of 4.53M shares per day and 4.86M over the past ten days. A total of 904.10M shares are outstanding, with a floating share count of 903.33M. Insiders hold about 0.10% of the company’s shares, while institutions hold 58.50% stake in the company. Shares short for IBM as of Oct 13, 2022 were 26.82M with a Short Ratio of 28.96M, compared to 25.76M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.97% and a Short% of Float of 2.97%.

Dividends & Splits

According to the company, the forward annual dividend rate for IBM is 6.60, from 6.52 in the trailing year. Against a Trailing Annual Dividend Yield of 4.45%, it implies a Forward Annual Dividend Yield of 4.89%. The stock’s 5-year Average Dividend Yield is 4.78. The current Payout Ratio is 463.20% for IBM, which recently paid a dividend on Dec 09, 2022 with an ex-dividend date of Nov 08, 2022. Stock splits for the company last occurred on May 26, 1999 when the company split stock in a 2:1 ratio.

Earnings Estimates

There are 11 different market analysts currently analyzing its stock. On average, analysts expect EPS of $3.59 for the current quarter, with a high estimate of $3.64 and a low estimate of $3.49, while EPS last year was $3.35. The consensus estimate for the next quarter is $1.66, with high estimates of $1.98 and low estimates of $1.34.

Analysts are recommending an EPS of between $9.32 and $8.91 for the fiscal current year, implying an average EPS of $9.11. EPS for the following year is $9.64, with 16 analysts recommending between $10.49 and $8.32.

Revenue Estimates

A total of 8 analysts believe the company’s revenue will be $16.37B this quarter.It ranges from a high estimate of $16.55B to a low estimate of $16.23B. As of the current estimate, International Business Machines Corporation’s year-ago sales were $16.7B, an estimated decrease of -2.00% from the year-ago figure. For the next quarter, 6 analysts are estimating revenue of $14.06B, a decrease of -1.00% over than the figure of -$2.00% in the same quarter last year. There is a high estimate of $14.4B for the next quarter, whereas the lowest estimate is $13.76B.

A total of 14 analysts have provided revenue estimates for IBM’s current fiscal year. The highest revenue estimate was $60.43B, while the lowest revenue estimate was $60.06B, resulting in an average revenue estimate of $60.23B. In the same quarter a year ago, actual revenue was $57.35B, up 5.00% from the average estimate. Based on 15 analysts’ estimates, the company’s revenue will be $60.46B in the next fiscal year. The high estimate is $61.49B and the low estimate is $59.02B. The average revenue growth estimate for next year is up 0.40% from the average revenue estimate for this year.