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IBM’s Stock Performance in 2018

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Shareholders’ returns and stock trends

As of October 9, IBM’s (IBM) closing price was $147.24 per share. IBM has a market capitalization of ~$134.4 billion. IBM stock is trading 7.1% higher than its 52-week low of $137.45 and nearly 14% lower than its 52-week high of $171.13.

IBM stock has fallen 4% YTD (year-to-date). In the trailing 12-month period, the stock has declined 0.1%. Microsoft (MSFT), Cisco (CSCO), and Accenture (ACN) have seen their stocks rise 31.2%, 24%, and 10.3% YTD, respectively, during the same period. In the above graph, you can see that IBM generated the lowest return YTD, while Microsoft had the highest return during the same period.

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IBM’s dividend yield

IBM continues to pay higher dividends on a regular basis despite its high debt levels. In the second quarter, IBM paid dividends of $1.4 billion. On a cumulative basis, the company paid $2.8 billion in dividends. IBM’s quarterly dividend was equivalent to an annualized dividend of $6.28 per share and a dividend yield of nearly 4.3% as of October 9. In comparison, Microsoft, Cisco, and Accenture have dividend yields of 1.67%, 2.78%, and 1.58%.

Bollinger Band

In the October 9 trading session, IBM stock closed at $147.24—close to its lower Bollinger Band level of $146.06. The value indicates that the stock is oversold, which investors could take as a “buy” signal.

Short interest ratio

On October 9, the short interest as a percentage of its shares outstanding for IBM stock was ~1.8%. When a stock’s short interest ratio is higher than 40%, it implies that investors and traders expect the company’s share price to decline.

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