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.
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%.
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.