Capital International Sarl Purchases 42,493 Shares of International Business Machines Corporation $IBM

Key Points

• Capital International Sarl boosted its stake in IBM by 375.7%, buying 42,493 shares to hold 53,804 shares valued at about $15.18 million at the end of the quarter.
• IBM reported stronger-than-expected results with Q EPS $4.52 vs. $4.33 consensus and revenue of $19.69 billion (up 12.2% YoY), and announced a quarterly dividend of $1.68 ($6.72 annual, ~2.7% yield).
• Analysts have been raising targets (e.g., Bank of America to $335, Evercore to $345, Oppenheimer to $380), leaving IBM with a MarketBeat consensus rating of “Moderate Buy” and an average target of $320.87.

Capital International Sarl grew its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 375.7% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 53,804 shares of the technology company's stock after purchasing an additional 42,493 shares during the period. Capital International Sarl's holdings in International Business Machines were worth $15,181,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Winnow Wealth LLC bought a new position in shares of International Business Machines during the 2nd quarter worth approximately $27,000. Mountain Hill Investment Partners Corp. bought a new stake in shares of International Business Machines in the third quarter worth $28,000. Trifecta Capital Advisors LLC boosted its holdings in International Business Machines by 129.1% during the third quarter. Trifecta Capital Advisors LLC now owns 126 shares of the technology company's stock worth $36,000 after purchasing an additional 71 shares during the last quarter. American Wealth Advisors LLC acquired a new position in International Business Machines during the third quarter worth $40,000. Finally, Davis Capital Management bought a new position in International Business Machines in the third quarter valued at $54,000. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Trading Down 2.1%

Shares of NYSE:IBM opened at $253.38 on Tuesday. International Business Machines Corporation has a 52-week low of $214.50 and a 52-week high of $324.90. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. The company has a market capitalization of $237.68 billion, a P/E ratio of 22.72, a price-to-earnings-growth ratio of 2.59 and a beta of 0.73. The company has a 50-day simple moving average of $280.69 and a 200 day simple moving average of $284.68.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, topping analysts' consensus estimates of $4.33 by $0.19. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The firm had revenue of $19.69 billion for the quarter, compared to the consensus estimate of $19.23 billion. During the same quarter in the previous year, the business earned $3.92 earnings per share. The business's revenue was up 12.2% compared to the same quarter last year. Sell-side analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 10th will be given a $1.68 dividend. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $6.72 annualized dividend and a dividend yield of 2.7%. International Business Machines's dividend payout ratio is presently 60.27%.

Insider Transactions at International Business Machines

In related news, Director Michael Miebach purchased 434 shares of the stock in a transaction on Wednesday, February 25th. The shares were purchased at an average cost of $233.33 per share, with a total value of $101,265.22. Following the acquisition, the director directly owned 434 shares in the company, valued at $101,265.22. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director David N. Farr acquired 1,000 shares of International Business Machines stock in a transaction dated Friday, January 30th. The shares were purchased at an average price of $304.00 per share, with a total value of $304,000.00. Following the acquisition, the director owned 9,258 shares of the company's stock, valued at approximately $2,814,432. This trade represents a 12.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have bought 1,484 shares of company stock valued at $417,157. 0.18% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

IBM has been the subject of a number of recent research reports. Bank of America increased their price objective on shares of International Business Machines from $315.00 to $335.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. Evercore upped their target price on International Business Machines from $330.00 to $345.00 and gave the stock an "outperform" rating in a report on Thursday, January 29th. Erste Group Bank downgraded International Business Machines from a "buy" rating to a "hold" rating in a research note on Wednesday, February 18th. Argus set a $360.00 price target on International Business Machines in a research report on Friday, January 30th. Finally, Oppenheimer set a $380.00 price objective on International Business Machines and gave the stock an "outperform" rating in a research note on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat.com, International Business Machines has an average rating of "Moderate Buy" and a consensus target price of $320.87.

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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