International Business Machines Corp. Is a Buy; Strong Momentum from Option Traders

 International Business Machines Corp. Is a Buy; Strong Momentum from Option Traders

In today’s session International Business Machines Corp. (IBM) registered an unusually high (10,052) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious IBM increase. With 10,052 contracts traded and 123994 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: IBM170120C00175000 closed last at: $0.63 or 5% up. About 3.21 million shares traded hands. International Business Machines Corp. (NYSE:IBM) has risen 8.26% since March 15, 2016 and is uptrending. It has outperformed by 2.78% the S&P500.

International Business Machines Corp. (NYSE:IBM) Ratings Coverage

Out of 21 analysts covering International Business Machines (NYSE:IBM), 6 rate it a “Buy”, 3 “Sell”, while 12 “Hold”. This means 29% are positive. $186 is the highest target while $110 is the lowest. The $152.70 average target is 2.74% above today’s ($148.63) stock price. International Business Machines has been the topic of 55 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Barclays Capital initiated International Business Machines Corp. (NYSE:IBM) on Wednesday, October 14 with “Underweight” rating. The firm has “Sector Perform” rating by RBC Capital Markets given on Monday, October 5. The company was maintained on Thursday, March 31 by Morgan Stanley. The stock has “Hold” rating given by Deutsche Bank on Wednesday, January 20. On Tuesday, April 19 the stock rating was maintained by Drexel Hamilton with “Buy”. The stock has “Neutral” rating given by UBS on Tuesday, July 19. On Tuesday, July 19 the stock rating was maintained by Deutsche Bank with “Hold”. The firm has “Neutral” rating given on Wednesday, October 21 by Citigroup. As per Friday, January 15, the company rating was maintained by RBC Capital Markets. The company was maintained on Tuesday, July 19 by JMP Securities.

According to Zacks Investment Research, “IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure services and business process services. The Global Business Services segment offers professional services and application management services. The Software segment consists primarily of middleware and operating systems software. The Systems and Technology segment provides computing power and storage solutions; and semiconductor technology products and packaging solutions. The Global Financing segment invests in financing assets, leverages with debt and manages the associated risks. IBM is headquartered in Armonk, New York.”

Insitutional Activity: The institutional sentiment decreased to 0.81 in Q2 2016. Its down 0.04, from 0.85 in 2016Q1. The ratio turned negative, as 70 funds sold all International Business Machines Corp. shares owned while 663 reduced positions. 85 funds bought stakes while 507 increased positions. They now own 540.67 million shares or 8.01% less from 587.72 million shares in 2016Q1.
Lingohr & Partner Asset Mgmt Gmbh holds 0.77% of its portfolio in International Business Machines Corp. (NYSE:IBM) for 5,059 shares. Beacon Communications, a New Jersey-based fund reported 10,276 shares. Foyston Gordon Payne Inc owns 2,430 shares or 0.07% of their US portfolio. Solaris Asset Limited Com last reported 0.56% of its portfolio in the stock. Kcg Inc has invested 0.01% of its portfolio in International Business Machines Corp. (NYSE:IBM). Cardinal Cap Mgmt last reported 27,577 shares in the company. Sigma Planning Corporation owns 8,487 shares or 0.17% of their US portfolio. The Utah-based Utah Retirement Sys has invested 0.65% in International Business Machines Corp. (NYSE:IBM). The Germany-based Meag Munich Ergo Kapitalanlagegesellschaft Mbh has invested 0.02% in International Business Machines Corp. (NYSE:IBM). Farmers has 6,473 shares for 0.32% of their US portfolio. Utd Commercial Bank last reported 0.45% of its portfolio in the stock. Pinnacle Lc owns 15,091 shares or 0% of their US portfolio. Gw Henssler Associates Limited holds 0.08% or 4,613 shares in its portfolio. Westfield Capital Mgmt Ltd Partnership accumulated 0% or 2,000 shares. Moreover, Citizens Northern Corp has 0.52% invested in International Business Machines Corp. (NYSE:IBM) for 4,387 shares.

Insider Transactions: Since April 20, 2016, the stock had 0 buys, and 9 sales for $6.97 million net activity. Gherson Diane J had sold 2,986 shares worth $438,942 on Friday, May 6. Shares for $1.08 million were sold by KELLY JOHN E III on Tuesday, August 2. $452,645 worth of International Business Machines Corp. (NYSE:IBM) shares were sold by PICCIANO ROBERT J. Another trade for 2,984 shares valued at $474,458 was sold by Clementi Erich. van Kralingen Bridget A had sold 629 shares worth $100,261. Di Leo Allen Bruno V sold $572,644 worth of stock or 3,900 shares. $607,865 worth of shares were sold by JETTER MARTIN on Tuesday, August 23.

International Business Machines Corporation is a technology company. The company has a market cap of $142.36 billion. The Firm operates through five divisions: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems Hardware and Global Financing. It has a 12.07 P/E ratio. The Company’s GTS segment offers services, including strategic outsourcing, integrated technology services, cloud and technology support services (maintenance services).

IBM Company Profile

International Business Machines Corporation (IBM), incorporated on June 16, 1911, is a technology company. The Firm operates through five divisions: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems Hardware and Global Financing.

More notable recent International Business Machines Corp. (NYSE:IBM) news were published by: Investorplace.com which released: “International Business Machines Corp. (IBM) Stock Dips on 18th Straight …” on October 17, 2016, also Nasdaq.com with their article: “Earnings Reaction History: International Business Machines Corp., 60.0% Follow …” published on October 17, 2016, Benzinga.com published: “Where Was The Bright Spot In IBM’s Earnings?” on October 18, 2016. More interesting news about International Business Machines Corp. (NYSE:IBM) were released by: Seekingalpha.com and their article: “International Business Machines Corporation: We Were About To Leave; Then …” published on October 11, 2016 as well as Fool.com‘s news article titled: “3 Reasons International Business Machines Corporation Stock Could Rise” with publication date: September 30, 2016.

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