Capital International Inc. CA Raises Stock Holdings in International Business Machines Corporation $IBM

Key Points

• Capital International Inc. CA increased its IBM stake by 51% in the fourth quarter, buying 55,971 additional shares and bringing its total holdings to 165,744 shares worth about $49.1 million.
• IBM reported strong quarterly results, with earnings of $1.91 per share versus expectations of $1.81 and revenue of $15.92 billion, up 9.5% year over year.
• The company also raised its quarterly dividend to $1.69 per share, while analysts currently see IBM as a Moderate Buy with an average price target of $304.17.

Capital International Inc. CA boosted its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 51.0% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 165,744 shares of the technology company's stock after purchasing an additional 55,971 shares during the quarter. Capital International Inc. CA's holdings in International Business Machines were worth $49,095,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in shares of International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock valued at $28,796,390,000 after acquiring an additional 1,439,824 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of International Business Machines by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock valued at $6,679,105,000 after acquiring an additional 336,069 shares in the last quarter. Capital World Investors lifted its position in shares of International Business Machines by 13.9% in the third quarter. Capital World Investors now owns 17,045,156 shares of the technology company's stock valued at $4,809,461,000 after acquiring an additional 2,077,506 shares in the last quarter. Norges Bank purchased a new position in shares of International Business Machines in the fourth quarter valued at approximately $2,446,429,000. Finally, Legal & General Group Plc lifted its position in shares of International Business Machines by 2.5% in the third quarter. Legal & General Group Plc now owns 7,302,722 shares of the technology company's stock valued at $2,060,536,000 after acquiring an additional 176,219 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

Analyst Ratings Changes

IBM has been the topic of several research reports. JPMorgan Chase & Co. decreased their target price on International Business Machines from $317.00 to $283.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 18th. Morgan Stanley increased their price target on International Business Machines from $215.00 to $225.00 and gave the company an "equal weight" rating in a report on Thursday, April 23rd. Jefferies Financial Group cut their price target on International Business Machines from $370.00 to $320.00 and set a "buy" rating for the company in a report on Monday, April 20th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of International Business Machines in a report on Thursday, May 28th. Finally, DZ Bank raised International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price target for the company in a report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $304.17.

International Business Machines Trading Down 5.5%

IBM opened at $285.06 on Friday. International Business Machines Corporation has a 52 week low of $212.34 and a 52 week high of $332.46. The business has a fifty day simple moving average of $246.48 and a 200-day simple moving average of $270.94. The firm has a market cap of $267.93 billion, a P/E ratio of 25.20, a P/E/G ratio of 2.95 and a beta of 0.67. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $15.60 billion. During the same period last year, the business posted $1.60 earnings per share. The company's quarterly revenue was up 9.5% on a year-over-year basis. On average, equities analysts expect that International Business Machines Corporation will post 12.4 earnings per share for the current year.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.4%. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. International Business Machines's dividend payout ratio (DPR) is 59.77%.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Wedbush reportedly reset its IBM price target, citing stronger AI momentum and continued demand for IBM’s enterprise software and consulting offerings.
• Positive Sentiment: IBM’s new strategic partnership with Google Cloud to scale enterprise AI adoption is being seen as a meaningful growth driver, with the deal aimed at helping customers modernize systems and bring AI into production faster. IBM and Google Cloud Announce Strategic Partnership to Scale AI with Human Expertise and AI‑Powered Delivery
• Positive Sentiment: Several market commentary pieces highlighted IBM’s large quantum-computing investment as a long-term catalyst, with some analysts saying the company is strengthening its position in an emerging high-growth market. IBM Stock’s $10 Billion Quantum Catalyst Is Here
• Positive Sentiment: Citi also pointed to IBM’s growing role in quantum computing, reinforcing the view that the company’s heavy spending could secure a leadership position in a market with major future upside.
• Neutral Sentiment: IBM shares were included in broader market coverage of stocks making big moves, reflecting elevated trading interest but not adding a clearly new company-specific catalyst.
• Negative Sentiment: A former IBM cybersecurity executive accused the company of covering up multiple foreign-government data breaches over the past decade, raising potential reputational and legal risks. Former cyber executive turned whistleblower accuses IBM of covering up several data breaches
• Negative Sentiment: Another report repeated allegations that IBM and AT&T concealed foreign hacks, which could weigh on investor sentiment if the claims gain traction.

International Business Machines Company 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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