IBM stock closed in the red on Thursday, ending a six-day winning streak. The shares dropped by -1.72% to $170.70, falling below its 52-week high of $199.18. Over the past 12 months, the stock has gained 33.9% in value.
During the month of May, IBM has closed in the red for five business days so far. In April, the stock closed negative in 13 out of 22 sessions. The Quantitative rating system from Seeking Alpha has given IBM a “Hold” rating with a score of 3.24 out of 5.
The company, based in Armonk, New York, received an A+ grade for profitability and a B for momentum. However, its growth outlook and valuation received a D- and B grade, respectively. According to the Wall Street community, five analysts have rated IBM as a “strong buy,” while two have rated it as a “buy.” Nine analysts have given the stock a “hold” recommendation, while two have rated it as a “sell” and two as a “strong sell.”
Looking at the analysis from Seeking Alpha contributors, the stock is viewed as a “buy” on average. JR Research wrote in a report on April 26 that IBM’s recent decrease in stock price presents a buying opportunity. Despite some downside volatility expected, the overall risk/reward for IBM looks positive, especially considering the company’s financial flexibility and forecasted free cash flow.
Overall, IBM’s stock performance has been strong in the past year, despite recent dips in the market. Investors may see the current price as a good opportunity to add more shares, especially considering the company’s financial health and growth prospects.
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https://seekingalpha.com/news/4110007-ibm-stock-closes-in-red-and-after-six-days-of-gains
