The Case for and Against International Business Machines Corporation (IBM)

International Business Machines Corporation (IBM) is an interesting player in the Technology space, with a focus on Information Technology Services. The stock has been active on the tape, currently trading at $155.35, down from yesterday’s close by -0.71%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. International Business Machines Corporation (IBM) currently trades with a market capitalization of $144.39 Billion. That value represents a market adjusting for revenues that have been falling by -0.38 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For IBM, the company currently has $10.92 Billion of cash on the books, which is offset by $4.3 Billion current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $11.4 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $5.17 on a per share basis this quarter. Perhaps, that suggests something about why 60.69% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how IBM has been acting. Looking at the stock’s movement on the chart, International Business Machines Corporation recorded a 52-week high of $182.79. It is now trading 27.44% off that level. The stock is trading $151.07 its 50-day moving average by -4.28%. The stock carved out a 52-week low down at $139.13.

In recent action, International Business Machines Corporation (IBM) has made a move of +2.99% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.31, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.82% with $925.00 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of IBM.

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