Analysts at Zacks Investment Research downgraded shares of International Business Machines Corp. (NYSE: IBM) from Hold to Sell in a research note to investors today. The company currently has a rating of Sell on the stock. A number of other analysts have spoken on the stock in recent days, and International Business Machines Corp. has earned a consensus one-year price target of $154.98, lower than the opening price of $155.87. International Business Machines Corp. stock has a 52-week high of $164.95. Important and integral changes in the company’s actions, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the initial recommendation.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Shares of International Business Machines Corp. (NYSE: IBM) opened at $155.87 yesterday trading between $154.45 and $156.57, and last traded at $154.45, which represents a dip of $0.42 over the previous closing price.
International Business Machines Corp. (NYSE: IBM) now has a market cap of 147.63B.
2,159,092 shares crossed the trading desk yesterday, 73 percent below the average, out of a total float 873,708,000. Swing traders often use increases in trading volume to determine substantial volume accumulation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, a single day of significant buy side trading is not enough to assert a trend. So market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.
By marking the activity of these professional investors and how they affect moving averages, traders are able to make make smarter trades.
With that in mind, International Business Machines Corp. (NYSE: IBM) now has a 50-day MA of $159.40 and 200-day MA of $152.93. It has traded in a 52-week range between $116.90 – 164.95 and today’s last price is 0.06% lower than the 52 week high of $164.95.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings by at least 25% over a 3 year period.
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