Capital World Investors Raises Stock Position in International Business Machines Corporation $IBM

Key Points

• Capital World Investors increased its IBM stake by 13.9% in Q3, adding 2,077,506 shares to hold 17,045,156 shares (about 1.82% of the company) valued at roughly $4.81 billion.
• IBM beat quarterly expectations with $4.52 EPS versus $4.33 expected and $19.69 billion in revenue (up 12.2% year‑over‑year); the stock trades near $253 and carries a consensus analyst rating of Moderate Buy with an average target of $320.87.
• IBM declared a $1.68 quarterly dividend ($6.72 annual, ~2.7% yield) with record/ex‑dividend dates on Feb 10 and payment on Mar 10, and company insiders recently made small share purchases.

Capital World Investors grew its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 13.9% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 17,045,156 shares of the technology company's stock after buying an additional 2,077,506 shares during the quarter. Capital World Investors owned 1.82% of International Business Machines worth $4,809,461,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Winnow Wealth LLC bought a new stake in International Business Machines during the second quarter worth approximately $27,000. Mountain Hill Investment Partners Corp. bought a new stake in shares of International Business Machines in the 3rd quarter valued at approximately $28,000. Trifecta Capital Advisors LLC boosted its holdings in shares of International Business Machines by 129.1% in the 3rd 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 period. American Wealth Advisors LLC bought a new position in shares of International Business Machines during the 3rd quarter valued at approximately $40,000. Finally, Davis Capital Management purchased a new stake in International Business Machines during the 3rd quarter valued at $54,000. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines Stock Performance

International Business Machines stock opened at $253.38 on Tuesday. 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 PE ratio of 22.72, a P/E/G ratio of 2.59 and a beta of 0.73. The company has a 50 day moving average price of $280.69 and a 200-day moving average price of $284.68. International Business Machines Corporation has a fifty-two week low of $214.50 and a fifty-two week high of $324.90.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 EPS for the quarter, topping the consensus estimate of $4.33 by $0.19. The company had revenue of $19.69 billion for the quarter, compared to the consensus estimate of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.International Business Machines's quarterly revenue was up 12.2% on a year-over-year basis. During the same period last year, the business posted $3.92 EPS. As a group, equities analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Dividend Announcement

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

Insider Activity

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

Analysts Set New Price Targets

Several research analysts have commented on the stock. Dbs Bank raised shares of International Business Machines from a "hold" rating to a "moderate buy" rating in a research note on Monday, January 19th. Morgan Stanley lowered their target price on shares of International Business Machines from $304.00 to $247.00 and set an "equal weight" rating for the company in a report on Wednesday, February 25th. UBS Group upgraded shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target on the stock in a report on Wednesday, February 25th. Evercore raised their price objective on shares of International Business Machines from $330.00 to $345.00 and gave the stock an "outperform" rating in a research note on Thursday, January 29th. Finally, Sanford C. Bernstein reissued a "market perform" rating on shares of International Business Machines in a research note on Wednesday, December 10th. One investment 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. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $320.87.

About International Business Machines

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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