Bank of Nova Scotia Makes New Investment in International Business Machines Corporation $IBM

Key Points

• Bank of Nova Scotia purchased 163,597 IBM shares worth approximately $46 million during the second quarter. Institutional investors and hedge funds collectively own 58.96% of IBM’s stock.
• Analyst sentiment remains broadly positive, with 16 Buy, 11 Hold, and one Sell rating; MarketBeat reports a consensus “Moderate Buy” rating and a $265.90 average price target.
• IBM reported quarterly EPS of $2.93, matching estimates, while revenue rose 1.1% year over year to $17.16 billion but fell short of expectations. The company also announced a quarterly dividend of $1.69 per share, representing a 2.9% annualized yield.

Bank of Nova Scotia purchased a new position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 163,597 shares of the technology company's stock, valued at approximately $46,005,000.

Other hedge funds have also made changes to their positions in the company. Basepoint Wealth LLC purchased a new position in shares of International Business Machines during the 4th quarter worth about $25,000. Portus Wealth Advisors LLC purchased a new stake in International Business Machines in the first quarter valued at approximately $26,000. Harborfront Financial Group LLC purchased a new stake in International Business Machines in the second quarter valued at approximately $27,000. Cornerstone Financial Management LLC acquired a new position in International Business Machines during the fourth quarter worth approximately $28,000. Finally, Hara Capital LLC purchased a new position in International Business Machines during the second quarter worth approximately $28,000. Institutional investors and hedge funds own 58.96% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on IBM. Susquehanna lifted their price target on shares of International Business Machines from $225.00 to $235.00 and gave the company a "neutral" rating in a report on Monday, August 31st. JPMorgan Chase & Co. cut their target price on International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. KeyCorp cut International Business Machines to a "sector weight" rating in a report on Tuesday, June 23rd. Sanford C. Bernstein reissued a "market perform" rating on shares of International Business Machines in a research report on Thursday, July 16th. Finally, Needham & Company LLC started coverage on International Business Machines in a research note on Wednesday, June 3rd. They set a "buy" rating for the company. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, International Business Machines presently has a consensus rating of "Moderate Buy" and a consensus target price of $265.90.

International Business Machines Stock Down 0.1%

NYSE IBM opened at $234.77 on Tuesday. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The business has a 50 day moving average price of $240.81 and a two-hundred day moving average price of $246.86. The stock has a market cap of $221.18 billion, a PE ratio of 20.83, a P/E/G ratio of 2.24 and a beta of 0.71.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts' consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. During the same period in the previous year, the company posted $2.80 earnings per share. The business's revenue for the quarter was up 1.1% compared to the same quarter last year. As a group, sell-side analysts predict that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

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

Insider Activity at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company 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.

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