As Warren Buffett Throws in the Towel, What's Next for IBM?
In a rare misfire for the Oracle of Omaha, Warren Buffett continues to admit defeat by unloading shares of International Business Machines (NYSE: IBM). Buffett's Berkshire Hathaway sold off approximately 33% of its holdings in the technology company during the quarter ended Sept. 30.
This isn't the first time Buffett has trimmed his IBM position. Earlier this year the company sold off 33% of its stake after admitting his initial thesis was too optimistic due to "big, strong competitors." After owning more than 81 million shares as of year-end 2016, Berkshire Hathaway now reports a stake of 37 million shares as of its last holdings filing.
In the short term, this is another black eye for a company that continues to struggle. In the past five years shares of IBM are down approximately 20% where the greater S&P 500 is up 90%. Still, with a forward price-to-earnings multiple of only 10.5 times and a yield near 4%, should you bet against Buffett and on this turnaround company?
Source: Fool.com
International Business Machines Corp Stock
We see a rather positive sentiment for International Business Machines Corp with 16 Buy predictions and 1 Sell predictions.
With a target price of 183 € there is a slightly positive potential of 3.57% for International Business Machines Corp compared to the current price of 176.7 €.
