Adage Capital Partners GP L.L.C. Lowers Position in International Business Machines Corporation $IBM

Key Points

• Adage Capital Partners GP L.L.C. reduced its stake in International Business Machines (IBM) by 4.4% during the first quarter, leaving it with 893,190 shares valued at approximately $222 million.
• Several institutions, including Vanguard Group and Goldman Sachs, have increased their holdings in IBM, reflecting ongoing interest from hedge funds and institutional investors.
• IBM recently announced a quarterly dividend of $1.68 per share, which will be paid on September 10, indicating a 2.8% yield despite a high dividend payout ratio of 109.09%.

Adage Capital Partners GP L.L.C. cut its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 4.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 893,190 shares of the technology company's stock after selling 41,300 shares during the quarter. Adage Capital Partners GP L.L.C. owned 0.10% of International Business Machines worth $222,101,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently added to or reduced their stakes in IBM. Vanguard Group Inc. lifted its holdings in shares of International Business Machines by 1.4% in the 1st quarter. Vanguard Group Inc. now owns 93,137,767 shares of the technology company's stock worth $23,159,637,000 after acquiring an additional 1,298,515 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in International Business Machines by 9.8% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,112,092 shares of the technology company's stock valued at $1,783,281,000 after acquiring an additional 722,582 shares in the last quarter. Ameriprise Financial Inc. increased its position in shares of International Business Machines by 1.0% during the first quarter. Ameriprise Financial Inc. now owns 5,516,240 shares of the technology company's stock valued at $1,371,812,000 after buying an additional 52,317 shares during the period. Goldman Sachs Group Inc. grew its holdings in shares of International Business Machines by 20.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 5,157,846 shares of the technology company's stock worth $1,282,550,000 after acquiring an additional 889,008 shares during the period. Finally, Dimensional Fund Advisors LP grew its stake in International Business Machines by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 5,108,455 shares of the technology company's stock worth $1,270,022,000 after purchasing an additional 24,790 shares during the period. Institutional investors own 58.96% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on IBM. Wall Street Zen raised shares of International Business Machines from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Bank of America dropped their price objective on International Business Machines from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Thursday, July 24th. Melius Research raised International Business Machines to a "strong-buy" rating in a research report on Monday, July 7th. Wedbush increased their price target on International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a report on Friday, June 20th. Finally, UBS Group increased their price objective on shares of International Business Machines from $195.00 to $200.00 and gave the stock a "sell" rating in a research note on Thursday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, International Business Machines has a consensus rating of "Hold" and a consensus price target of $268.75.

International Business Machines Trading Down 0.9%

IBM stock opened at $243.59 on Tuesday. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00. International Business Machines Corporation has a twelve month low of $198.27 and a twelve month high of $296.16. The stock has a market capitalization of $226.39 billion, a price-to-earnings ratio of 39.54, a price-to-earnings-growth ratio of 3.75 and a beta of 0.71. The firm's fifty day simple moving average is $264.80 and its two-hundred day simple moving average is $257.51.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.65 by $0.15. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%.The business had revenue of $16.98 billion during the quarter, compared to analyst estimates of $16.58 billion. During the same quarter in the previous year, the business earned $2.43 earnings per share. The company's revenue for the quarter was up 7.7% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. As a group, analysts anticipate that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 8th will be issued a dividend of $1.68 per share. The ex-dividend date is Friday, August 8th. This represents a $6.72 dividend on an annualized basis and a yield of 2.8%. International Business Machines's dividend payout ratio (DPR) is presently 109.09%.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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