IBM: shares down after Warren Buffett sells stake.

(CercleFinance.com) - Shares in IBM fell on Friday after Warren Buffett, the billionaire chief executive officer and chairman of Berkshire Hathaway, told CNBC that he has sold some of his shares in the IT company.


In a interview with the financial TV network, Warren Buffett said that he has sold about a third of his total stake so far this year.

"When it got above 180 dollars we actually sold a reasonable amount of stock," the businessman said.

Analysts at Wells Fargo Securities - who have a "market perform" rating on the stock - said his comments suggest the sale was driven by "disappointment," regarding IBM's expectations, valuation, and competition issues.

The brokerage firm noted that Buffett said he would not be selling his remaining shares (which still represent a fairly large 6% stake) and that he stopped the selling program when IBM shares were below 160 dollars.

In the interview, Warren Buffett also cited "big strong competitors."

"We believe IBM will have to show fundamental improvement in order to see multiple expansion though think 2017 will be another transition year," Wells Fargo commented.

One hour after the market opened, IBM shares were down 2.5% at under 155.2 dollars.

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