IBM Stock Price Chart, History and Forecast
IBM (International Business Machines) Corporation is an American multinational technology firm based in New York. Founded in 1911, it is one of the oldest known brands in the computing sector. From its early days creating computers, IBM has now also started operations in the cloud computing realm. All this makes IBM an interesting stock, with potential for more growth in the future. This guide will analyse the IBM stock price in detail, from its price today to its history and forecast.
IBM Stock Price Chart Today
IBM's Stock Price History
Analysing IBM's stock price history can be a rich source of guidance and inspiration for investors. So, let’s take a closer look at the evolution of IMB share price since its beginnings. Note that all stock prices of IBM mentioned in this guide have been adjusted for all subsequent stock splits.
IBM Stock Price Historical Trends
IBM traces its history back to the 19th century, when Thomas J. Watson founded the company by merging three already successful companies into one single entity: CTR. In 1916, the CTR would make its debut at the NYSE (New York Stock Exchange) on Wall Street.
“CTR” became “IBM” (International Business Machines) a year later, in 1917. During this same period, demand for accounting machines and time cards helped drive the price of IBM stock from $54 to a high of $216, before the crash that triggered the Great Depression. In 1932, the company's stock bottomed out at $9. Post-crisis, IBM invested heavily in research, which propelled the company from the $9 million in revenue it hit in the early 1900s to $892 million by 1956. IBM stock price responded well too, steadily growing throughout the 20th century until the 80s, when the price per share hit $43.
IBM's stock price hit even higher highs when the computing era came in the late 20th century, thanks to the fact IBM was one of few firms that played integral roles in the ecosystem. On July 5, 1999, the company's stock price hit a whopping $140.
The stock price for IBM bottomed out at $79 in December 2008 during the subprime crisis, but was able to bounce back swiftly. On March 15, 2013, IBM stock price hit its all-time high record of $215. We can attribute this astronomical growth to the company's product innovations in areas like cloud computing, revenue growth, and better than expected financial information and earnings results.
After 2013, however, investors started experiencing negative price action, and IBM stock basically became a dismal investment. The IBM stock price would then go on to bottom out at $95 on March 2020, during the Coronavirus-inspired sell-off.
IBM Stock Price Splits
IBM has undergone 7 stock splits in its history. The first split took place on May 18, 1964, and was a 5 for 4 split, implying that for every 4 IBM shares owned before the split, shareholders now held 5. For example, a 1000 share position pre-split became a 1250 share position following the first split.
A second split took place on May 18, 1966, and was a 3 for 2 split, implying that for every 2 shares of IBM owned, shareholders now held 3 shares. Then, over the following decades, IBM peppered its history with similar stock split ratios as follows:
- April 23, 1968: 2 for 1 split
- May 29, 1974: 5 for 4 split
- June 1, 1979; 4 for 1 split
- May 28, 1997: 2 for 1 split
- May 27, 1999: 2 for a split
From IBM's stock split history above, we can conclude that a buy and hold investor who held 100 IBM shares before the first split would have owned 7,500 shares by the turn of the new millennium. Also note, that whenever IBM split its shares, its market capitalization pre and post-split remained the same since shareholders now owned more shares, but each was valued at lower prices.
IBM Stock Price Prediction
To better lay out this section of the guide, I'll divide it into three different categories.
Analyst consensus: buy, hold, or sell?
According to TipRanks, 8 analysts giving stock ratings to IBM vote in favour of a moderate buy. Out of 8 analysts, 5 rate the stock a buy, 3 rate it hold, while none of them rank it a sell.
Predictions in 1, 2, 5, 10 years
According to AI Pickup, 7 Wall Street analysts offering IBM stock price targets have an average price target of $161 with a low forecast of $140 and a high forecast of $176. For 2022, 2025, and 2030, the same 7 analysts gave average price targets of $112.43, $241.59, and $460.6, respectively.
Where Can I Buy IBM Stock Today?
Do you believe in IBM stock's ability to grow in value and create interesting returns? If yes, all you'll need to invest in the company is a reliable brokerage platform you can invest with, such as ZFX.
Some of the reasons ZFX is a good option include the platform's great leverage, tight spreads, security, educational material, and highly reliable customer service. And as evident from the next section in this guide, opening an account with ZFX is very easy and quick. The ZFX team will have you ready to start trading IBM at its current stock price in just a few steps.
Investing in IBM Shares: Tutorial
Before taking a look at the step-by-step guide, understand that you'll execute all trades on the platform using the MT4 (MetaTrader 4) platform. Arguably the most popular online trading platform globally, MT4 offers the right mix of trading tools for traders across all levels of experience, including expert advisors (EAs), indicators, and much more. Now, let’s see how to invest in IBM stock.
Step 1: Register with ZFX
On the ZFX homepage, find and select the "Open an account" link at the top of the page. On the next page, type in your personal info on the digital form. When you're done, hit the "Next" button.
Step 2: Make Your First Deposit
On your profile dashboard, use links like the one shown above to deposit the amount you'd like to invest. Note that you can choose to pay the deposit using a bank card or bank transfer.
Step 3: Account Verification
As part of ZFX's Know Your Customer policy, you will be required to submit confirmation of proof of identity (like a valid passport) and residence (a billing document from the last six months.) ZFX will take approximately 24 hours to verify your info.
Step 4: Invest in IBM Stock at Current Price
You're now a step away from becoming an IBM stock investor. Download and install the MT4 platform using the link at the top of your profile dashboard. Once installed, open the platform, use the details ZFX sent to your email address to log in, and find IBM under the symbol IBM. Feel free to invest whenever you have your IBM stock price forecasts ready.
To Buy or Not to Buy IBM Stock?
Here are three points in favour of invest in IBM stock today.
IBM stock price is relatively cheap
The IBM stock price trades on average at a more affordable price than other tech companies such as Amazon or Apple. Some might argue that the company's sluggish growth justifies the discount. However, once IBM's growth stabilizes and the company shows signs of staging a turnaround akin to Microsoft's, expect the IBM stock to command a way higher valuation.
IBM's cash flows are promising
Despite the company's revenue growth struggles, IBM maintains its excellence at generating cash. Over the last year, the company reported a free cash flow of approx. $9.7 billion. That's more than enough to cover the $5.9 billion in dividend costs over the same period.
IBM delivers high dividends
Additionally, note that IBM holds the Dividend Aristocrat status. A dividend aristocrat refers to a publicly-traded firm that has consistently paid dividends each to its investors, as well as increased its dividend yields for the last 25 years or more. IBM has done for 26 consecutive years so far.
Things to Know About the IBM Stock Price Before You Invest
Understand what the new IBM will look like
In the future, IBM is expected to reorganize its business report into four segments: financing, infrastructure, software, and consulting. Analysts predict that the consulting segment will deliver annual revenue growths in the high single-digit percentages over the next couple of years.
Do not use IBM stock price’s past performance to predict the future
Many of us aree already very familiar with this piece of advice – "Past results are no guarantee of future performance." Still, though, most investors tend to consider historical stock performances as a key metric in which stocks they choose to invest in. If you're planning on investing in IBM stock, keep this in mind and do not rely on previous results when making your trading decisions.
Keenly analyze IBM's fundamentals
To ensure your decision to invest in IBM stock is a sound one, here are several essential documents you ought to analyze every time you want to invest or increase your stake in the company.
- Material change reports
- Management information circulars
- Management's discussion and analysis
- Quarterly and annual financial statements
- Annual information forms
Bottom Line: What Can We Expect from IBM Stock Price?
Have you been keeping an eye on IBM for a while? Now may be the perfect time to take that leap. Indeed, the company's buoyant future outlook isn't fully reflected in today's IBM stock price. Add to that IBM's strong balance sheet, and you'll see why you should buy IBM stock right away.
If you are ready to invest in IBM stock today, ZFX is an optimal solution to do so. As we have explained, it provides a reliable and regulated platform with many useful trading tools and a wide catalogue of assets to choose from. You’ll be able to get started and trade IBM in just a few simple steps.