Applied Finance Capital Management LLC Sells 9,743 Shares of International Business Machines Corporation $IBM

Key Points

• Applied Finance Capital Management LLC reduced its IBM stake by 8.3% in the first quarter, selling 9,743 shares and ending with 108,225 shares worth about $26.2 million.
• IBM continues to attract mixed but generally positive analyst attention, with a Moderate Buy consensus, an average target price of $306.28, and several firms recently reaffirming or adjusting bullish ratings.
• The company recently posted better-than-expected quarterly results, with EPS of $1.91 and revenue of $15.92 billion, while also raising its quarterly dividend to $1.69 per share.

Applied Finance Capital Management LLC lessened its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 8.3% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 108,225 shares of the technology company's stock after selling 9,743 shares during the period. International Business Machines accounts for 2.0% of Applied Finance Capital Management LLC's investment portfolio, making the stock its 12th largest position. Applied Finance Capital Management LLC's holdings in International Business Machines were worth $26,233,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Family CFO Inc bought a new stake in International Business Machines during the 4th quarter valued at $25,000. Basepoint Wealth LLC purchased a new position in International Business Machines during the 4th quarter valued at about $25,000. Portus Wealth Advisors LLC purchased a new position in International Business Machines during the 1st quarter valued at about $26,000. Joseph Group Capital Management bought a new stake in shares of International Business Machines during the fourth quarter valued at about $28,000. Finally, Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines during the fourth quarter valued at about $28,000. Institutional investors own 58.96% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on IBM shares. Roth Capital restated a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Bank of America increased their target price on shares of International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a research note on Monday, July 6th. Oppenheimer cut their price target on shares of International Business Machines from $380.00 to $320.00 and set an "outperform" rating for the company in a report on Thursday, April 16th. BMO Capital Markets reduced their price target on shares of International Business Machines from $290.00 to $270.00 and set a "market perform" rating for the company in a research report on Thursday, April 23rd. Finally, Wall Street Zen raised shares of International Business Machines from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Sixteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $306.28.

More International Business Machines News

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: IBM continues to get credit for growth in quantum computing and AI, including new enterprise software tools and multi-agent capabilities that could support future revenue. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
• Positive Sentiment: The stock still has implied upside to Susquehanna’s target, suggesting analysts see value if IBM can convert its AI and quantum strengths into stronger earnings growth. Susquehanna coverage note
• Neutral Sentiment: IBM’s latest product updates for its Bob platform and other AI tools reinforce its enterprise strategy, but these launches are not yet enough to change the near-term investment view. IBM Upgrades Bob With Multi-Agent AI
• Negative Sentiment: Starbucks’ move to build internal AI tools to replace Microsoft and IBM software highlights a potential risk to IBM’s enterprise software revenue if other large customers follow suit. There Are So Many Reasons to Like IBM Right Now—Just Not Enough to Buy the Stock
• Negative Sentiment: Analysts remain cautious heading into IBM’s upcoming Q2 earnings, with concerns that AI could pressure parts of the consulting and mainframe business even as newer growth areas expand. Susquehanna Praises IBM’s Quantum and AI Growth but Rates the Stock a Hold – Here’s Why

International Business Machines Stock Performance

International Business Machines stock opened at $287.85 on Monday. International Business Machines Corporation has a fifty-two week low of $212.34 and a fifty-two week high of $332.46. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The stock has a market cap of $270.55 billion, a P/E ratio of 25.45, a price-to-earnings-growth ratio of 2.78 and a beta of 0.68. The firm's fifty day moving average price is $263.77 and its 200-day moving average price is $265.91.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business had revenue of $15.92 billion for the quarter, compared to analysts' expectations of $15.60 billion. During the same quarter in the prior year, the firm earned $1.60 earnings per share. The firm's revenue was up 9.5% on a year-over-year basis. On average, equities research analysts expect that International Business Machines Corporation will post 12.45 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Friday, May 8th. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

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.

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