|Bid||0.00 x 900|
|Ask||0.00 x 1000|
|Day's Range||187.60 - 187.81|
|52 Week Range||115.31 - 189.40|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||75.05|
|Earnings Date||Sep 17, 2019 - Sep 23, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||189.30|
For many on Wall Street, IBM (NYSE:IBM) is a large-cap tech has-been. But following last week's earnings beat that view is looking shortsighted both off and on the IBM stock chart. Let me explain.Source: Shutterstock This past Thursday was a very good day for IBM shareholders. Shares finished the session up 4.55%. More important, Thursday offered strong support for investors looking at the established technology giant with fresh interest on the heels of the company's Q2 earnings report.By the numbers IBM delivered non-GAAP earnings of $3.17 per share which topped Street views of $3.06. Sales of $19.16 billion for the period matched consensus estimates while falling 4% year-over-year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn of itself, the mixed results aren't going to win over investors. But a closer inspection of IBM's revenues and it's just completed acquisition of Red Hat (NYSE:RHT) point to an emerging growth story as an important pivot from computer hardware sales into software and the cloud market which should prove a boon for IBM's shareholders. * 7 Defense Stocks to Buy to Fortify Your Portfolio What's more, if we switch from Big Blue's business prospects over to the price chart, the view for IBM stock's longer-term prospects looks very promising as well. IBM Stock Weekly Chart Click to EnlargeAs discussed late last month, the past few years have seen IBM stock's fortunes languish after establishing an all-time-high in 2013. Since then shares have witnessed two major periods of corrective price action. The good news is that, taken together, the price action has formed a very large and constructive-looking double bottom base.Now and with IBM's post-earnings reaction breaking above angular resistance and the 62% retracement level into the right side of pattern base, shares are in strong position to continue rallying and eventually break out to new highs.The other reality is I don't anticipate IBM stock will completely transform itself. Price momentum similar to Amazon (NASDAQ:AMZN) isn't a reasonable expectation. But could a rally similar to the run Microsoft (NASDAQ:MSFT) has enjoyed the past couple years emerge? Possibly. But first things first. The IBM Stock TradeWith shares roughly 4% to 5% above April's pivot high and angular resistance, IBM stock is in a buyable, non-extended position. But I wouldn't buy shares just yet. With stochastics overbought on the monthly, as well as weekly and daily time frames, waiting to go long IBM on a very likely pullback towards support is the favored strategy.For now, I'd put IBM on the buy watch list and monitor shares for profit-taking towards or ideally into the area in between $140 and $144.Should IBM's price action cooperate, using the weekly time frame to confirm a fresh higher low candlestick within the right side of base is how I'd buy shares. For risk management, using the newly-formed pivot low as a stop-loss or a blended technical and dollar-based exit below $137 to keep exposure off and on the price chart acceptable-looking makes sense.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions IBM stock or its derivatives or any other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Earnings Show It's Time to Buy IBM Stock on a Pullback appeared first on InvestorPlace.
Palo Alto-based cloud data provider Cloudera Inc. plans to open-source all of its software and focus on providing value-added services on top of its platform, the company said Wednesday.
International Business Machines Corp. (IBM) is showing some conflicting signals right now, as the company expects an earnings hit in its July 17 report, within an otherwise solid outlook. Paradoxically, the hit will likely come from IBM’s biggest piece of good news: the recent close of its Red Hat, Inc. (RHT) acquisition.First, some background. Last year, IBM bid $34 billion to acquire Red Hat, the open source cloud company. The deal has been completed as of this week, with IBM paying $190 per share for Red Hat’s existing stock. The deal was closed in cash, and IBM issued a bond series to cover $20 billion of the purchase price. The added debt pushes Big Blue’s total borrowed liabilities over $60 billion, and the company will be suspending share buybacks for the next two years.On the plus side, bringing Red Hat on board offers real advantages to IBM. It makes Big Blue the world’s largest hybrid cloud provider, adding services to a business that already brings in $19 billion annually for IBM. Red Hat will function as a distinct division within the larger company, staying focused on its current core business of open source software. IBM’s CEO, Ginni Rometty, says that with this acquisition, “IBM will offer companies the only open cloud solution that will unlock the full value of the cloud for their business.”Putting on a New HatAs for Red Hat (RHT), company CEO Jim Whitehurst said of the deal, “Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation.”Specifically, the Red Hat brings to IBM the ability to tap into the large customer base of companies that are not yet all-in on cloud computing. According to IBM’s research, some 80% of the potential market is reluctant to fully enter cloud computing, mainly due to the proprietary nature of the systems. Red Hat’s open source software offers a viable alternative.More importantly, as far as IBM is concerned, Red Hat generates nearly $1 billion in free cash flow annually. This is of major importance, as is Red Hat’s $3.4 billion in fiscal 2019 revenues, considering the debt load that IBM took on to complete the acquisition.Short Term Pain, Long Term GainIt’s a bright vision of the future, and it may well come true. Accounting rules, however, will require in the short term that IBM report the acquisition costs against the bottom line.According to Evercore analyst Amit Daryanani, the negative impact could be as much as 80 cents per share for 2019 and 1 dollar per share in 2020. This puts Daryanani’s EPS estimate for FY2019 at $13.10 to $13.90, with the upper end in line with company guidance.Daryanani explains, “Although Red Hat's revenue profile is fairly substantial, with strong levels of profitability, we note that purchase accounting treatment of the target company's deferred revenue will make IBM unable recognize a meaningful portion of Red Hat's deferred revenue as it converts to actual revenue; this is while IBM will have to incur 100% of Red Hat's operating expense.”Despite predicting an earnings hit on the way, Daryanani still sees IBM as a long-term gain for investors. He gives the stock an outperform rating and a price target of $150, basing his positive outlook on the combination of IBM’s 23% ytd gains and Red Hat’s solidly profitable bottom line. His price target suggests an upside of 6.7% for IBM shares. IBM reports earnings on July 17, and we’ll see then how this forecast matches up with reality.Stifel’s David Grossman believes it will. He sees IBM in a more traditional light, describing the stock as “a defensive holding with two potential catalysts, namely continued improvement in its core infrastructure services business and demonstrated success in leveraging Red Hat.” His price target, $169, clearly shows his confidence in IBM’s prospects – it implies an impressive 20% upside for the stock.Overall, IBM holds a moderate buy rating from the analyst consensus. The average price target of $157 gives an upside of 12% when compared to the $140 current trading price.View IBM Price Target & Analyst Ratings Detail
Slews of Form 4s – the regulatory paperwork required for insider stock transactions – dropped late Tuesday, as top brass Red Hatters finally got their first big dollar payouts from the $34 billion IBM deal.
Moody's Investors Service ("Moody's") has downgraded IBM Credit LLC (IBM Credit) senior unsecured and long term issuer ratings to A2 from A1 (Rating Under Review) and affirmed its Prime-1 commercial paper and short term issuer ratings. The rating action results from the downgrade of IBM Credit's parent International Business Machines Corporation (IBM, A2) and concludes the review Moody's initiated October 29, 2018. As part of the same rating action, Moody's has withdrawn the outlooks on IBM Credit's Long-Term Issuer rating and Senior Unsecured rating for its own business reasons.
IBM (NYSE: IBM ) closed on its acquisition of Red Hat Inc (NYSE: RHT ) Tuesday. While the deal marks IBM’s acquisition of “critical mass” in the hybrid cloud market, the deal poses potential execution ...
NEW YORK , July 9, 2019 /PRNewswire/ -- T-Mobile US Inc (NASD: TMUS) will replace Red Hat Inc. (NYSE: RHT) in the S&P 500 effective prior to the open of trading on Monday, July 15 . S&P 500 & 100 constituent ...
(IBM) today completed its acquisition of the open-source software giant (RHT) for $190 a share in cash. IBM (ticker: IBM) said Red Hat will continue to be run by CEO Jim Whitehurst, who will now report to IBM CEO Ginni Rometty. Red Hat will keep its headquarters in Raleigh, N.C., maintain the Red Hat brand, and operate as a unit inside IBM’s Cloud and Cognitive Software segment.
Moody's Investors Service ("Moody's") downgraded International Business Machines Corporation's ("IBM") senior unsecured rating to A2 from A1 following receipt of regulatory approval for IBM to acquire Red Hat, Inc. ("Red Hat", unrated) for approximately $34 billion in an all cash transaction. IBM's Prime-1 commercial paper rating has been affirmed.
Could the IBM buy of Red Hat mean growth in Raleigh? That’s the implication from comments made by Arvind Krishna, senior vice president of cloud and cognitive software at IBM.
“In fact, our commitment to that vision has grown – Red Hat will remain a distinct unit in IBM as we work to help customers deliver any app, anywhere realizing the true value of the hybrid cloud,” writes Red Hat CEO Jim Whitehurst.
Underscoring the drive into high-margin businesses, IBM in October agreed to buy Red Hat, the company’s biggest acquisition in its more than 100-year history. Ginni Rometty, IBM chief executive since 2012, has steered the company toward faster-growing segments such as cloud, software and services and away from traditional hardware products, but not without a bumpy journey. Rometty cited as examples major IBM cloud customers like Morgan Stanley and Delta Air Lines .
ARMONK, New York and RALEIGH, North Carolina, July 9, 2019 /PRNewswire/ -- IBM (NYSE: IBM) and Red Hat announced today that they have closed the transaction under which IBM acquired all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total equity value of approximately $34 billion. The acquisition redefines the cloud market for business. Red Hat's open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM's innovation and industry expertise, and sales leadership in more than 175 countries.
Red Hat Inc NYSE:RHTView full report here! Summary * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is low for RHT with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $5.99 billion over the last one-month into ETFs that hold RHT are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is very weak relative to the trend shown over the past year, and has continued to ease. However, the rate of expansion may accelerate in the coming months. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Facebook makes more profit per employee than any other tech company on the Fortune 500: A whopping $634,694 per year. Here's how that compares with other major tech employers like Google, Apple and Cisco.
IBM’s pending $34 billion acquisition of open-source software giant Red Hat is likely to substantially cut its 2019 and 2020 earnings, Evercore says.
IBM closed its $34 billion acquisition of Red Hat, its largest deal ever. Yahoo Finance's Ines Ferre joins Seana Smith on 'The Ticker' to discuss the acquisition and a new report that claims IBM has patented a smartwatch that unfolds into a tablet.
Jul.09 -- IBM closes a $34 billion deal to buy Red Hat. IBM CEO Ginni Rometty and Red Hat CEO James Whitehurst talk to Bloomberg's David Westin about the merger.