Advisors Capital Management LLC Invests $148.07 Million in International Business Machines Corporation $IBM

Key Points

• Advisors Capital Management initiated a $148.07 million IBM position in the second quarter, acquiring 526,559 shares. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.93, in line with estimates, while revenue of $17.16 billion fell short of the $17.46 billion consensus but increased 1.1% year over year.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $265.90, while IBM announced a quarterly dividend of $1.69 per share, representing a 2.9% yield.

Advisors Capital Management LLC bought a new position in International Business Machines Corporation (NYSE:IBM - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The firm bought 526,559 shares of the technology company's stock, valued at approximately $148,074,000. International Business Machines accounts for approximately 1.6% of Advisors Capital Management LLC's investment portfolio, making the stock its 9th largest holding. Advisors Capital Management LLC owned 0.06% of International Business Machines as of its most recent SEC filing.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Cannon Wealth Management Services LLC purchased a new stake in International Business Machines in the second quarter worth $215,000. MJP Associates Inc. ADV purchased a new position in International Business Machines in the 2nd quarter worth approximately $1,775,000. PCM Encore LLC purchased a new position in International Business Machines in the 2nd quarter worth approximately $650,000. Trillium Asset Management LLC bought a new position in International Business Machines in the 2nd quarter valued at approximately $671,000. Finally, Altman Advisors Inc. purchased a new stake in International Business Machines during the 2nd quarter valued at $2,575,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Stock Performance

NYSE:IBM opened at $234.87 on Friday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a 50-day simple moving average of $241.67 and a two-hundred day simple moving average of $247.13. The firm has a market capitalization of $221.28 billion, a PE ratio of 20.84, a P/E/G ratio of 2.24 and a beta of 0.71. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting the consensus estimate of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter last year, the company earned $2.80 earnings per share. The business's revenue for the quarter was up 1.1% compared to the same quarter last year. Analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $1.69 per share. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines's dividend payout ratio is currently 59.98%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Jefferies Financial Group decreased their target price on International Business Machines from $320.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, July 21st. Sanford C. Bernstein restated a "market perform" rating on shares of International Business Machines in a research report on Thursday, July 16th. Wall Street Zen upgraded shares of International Business Machines from a "sell" rating to a "hold" rating in a research note on Saturday, August 29th. Susquehanna increased their price target on International Business Machines from $225.00 to $235.00 and gave the company a "neutral" rating in a report on Monday, August 31st. Finally, Bank of America raised their price target on International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a research note on Monday, July 6th. Sixteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $265.90.

Insider Buying and Selling at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.27% of the company's stock.

International Business Machines Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source