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What Are Analyst Recommendations for IBM?

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Nov. 17 2015, Published 3:21 p.m. ET

Shareholder returns and stock trends

As of November 16, 2015, IBM (IBM) has generated returns of -18.6% for the trailing 12 months (or TTM) and -11.1% for the trailing one-month period. The company’s share price has risen 1.5% in the trailing five-day period.

IBM’s (IBM) peers Hewlett-Packard (HPQ), Cognizant Technology Solutions (CTSH), and Accenture (ACN) have generated returns of -3.8%, -3.1%, and 1.4%, respectively, in the trailing five-day period.

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Moving averages

On November 16, 2015, the last trading price of IBM (IBM) was $131.80. The company was trading 12.9% below its 20-day moving average of $151.30, 8.6% below its 50-day moving average of $144.10, and 5.7% below its 100-day moving average of $139.80.

Moving average convergence divergence and RSI

The MACD (moving average convergence divergence) is the difference between a company’s short-term and long-term moving averages. IBM’s (IBM) 14-day MACD of -2.7 shows a downward trading trend, as the figure is negative.

The 14-day Relative Strength Index (or RSI) for IBM (IBM) is 34, which shows that the stock was somewhat oversold. If the RSI is above 70, it indicates the stock is somewhat overbought. An RSI figure below 30 suggests that a stock has been oversold.

IBM (IBM) constitutes 0.66% of the SPDR S&P 500 ETF (SPY) and 3.3% of the Vanguard Dividend Appreciation ETF (VIG).

Analyst recommendations

Of the 27 analysts covering IBM (IBM), six have a “buy” recommendation, nine have a “sell” recommendation, and 15 have a “hold” recommendation. The analyst stock price target for the company is $149, with a median target estimate of $150. IBM (IBM) is trading at a discount of 13.9% with respect to its median target.

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