On November 13, 2024, Alfred Zollar, a Director at International Business Machines Corp (IBM, Financial), purchased 936 shares of the company, as reported in a recent SEC Filing. This transaction increased the insider's total holdings to 936 shares.
International Business Machines Corp, commonly known as IBM, is a global technology and consulting company headquartered in Armonk, New York. It is known for its hardware, software, and services in IT. IBM's offerings include cloud computing, artificial intelligence, and cybersecurity solutions among others.
The shares were bought at a price of $210.62 each, valuing the transaction at approximately $197,140.32. Following this purchase, the market cap of IBM stands at $195.03 billion.
The company's current price-earnings ratio is 30.70, which is above both the industry median of 26.85 and the historical median for IBM. This suggests a premium valuation compared to its peers.
According to the GF Value, the intrinsic value of IBM's stock is estimated at $148.36 per share, making the current price represent a price-to-GF-Value ratio of 1.42. This indicates that the stock is significantly overvalued.
Over the past year, there has been a total of 1 insider buy and 2 insider sells at IBM. The insider transaction trend shows a cautious sentiment among the top executives and directors with more selling activity compared to buying.
This recent purchase by Director Alfred Zollar could be a signal of his confidence in the company's future performance despite the current valuation metrics suggesting a premium. Investors often look at insider transactions as a sign of how the company's leadership perceives the stock's value and future prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
