International Business Machines Corporation (IBM) Stock Down After Price Target Increase at Morgan Stanley

International Business Machines Corporation (NYSE: IBM) shares were down in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.

Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.

International Business Machines Corporation (NYSE: IBM) had its price target increased by equities researchers at Morgan Stanley from $0.00 to $9.00. With a rating of on the shares, International Business Machines Corporation has a 52-week high of $169.95. The one-year price target of $158.38 is a decrease compared to the opening price of $167.77, resulting a fair amount of other analysts to comment on the stock in recent days.

Yesterday International Business Machines Corporation (NYSE: IBM) shares last traded at $166.28, a drop of $1.47 from the previous closing price. Opening at $167.77, they ranged from $166.09 and $168.00 throughout the day.

International Business Machines Corporation (NYSE: IBM) currently has a market cap of 158.11B.

International Business Machines Corporation (NYSE: IBM) Average Daily Trading Volume

376,107 shares traded hands yesterday, 96 percent lower than the norm, out of a total float 868,757,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

International Business Machines Corporation (NYSE: IBM) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.

With that in mind, International Business Machines Corporation (NYSE: IBM) now has a 50-day MA of $165.64 and 200-day MA of $159.14. It has traded in a 52-week range between $116.90 – 169.95 and today’s last price is 2.16%% lower than the 52 week high of $169.95.

Earnings growth is a critical factor to look at when investing in stocks and investors look for companies that have raised their earnings by at least 25% over a 3 year period.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.

Leave a Reply

Your email address will not be published. Required fields are marked *