Carnegie Lake Advisors LLC Sells 4,021 Shares of International Business Machines Corporation $IBM

Key Points

• Carnegie Lake Advisors cut its IBM holdings by 78.5% in the third quarter, selling 4,021 shares and retaining 1,100 shares valued at about $242,000.
• IBM beat quarterly earnings and revenue estimates, reporting adjusted EPS of $2.95 and revenue of $17.10 billion; revenue rose 4.7% year over year.
• Analyst sentiment is moderately positive, with a consensus “Moderate Buy” rating and average price target of $266.88. Recent quantum-computing initiatives and partnerships were highlighted as potential long-term growth drivers.

Carnegie Lake Advisors LLC trimmed its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 78.5% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,100 shares of the technology company's stock after selling 4,021 shares during the period. Carnegie Lake Advisors LLC's holdings in International Business Machines were worth $242,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Harborfront Financial Group LLC purchased a new position in shares of International Business Machines in the 2nd quarter valued at $27,000. Hara Capital LLC acquired a new position in shares of International Business Machines during the 2nd quarter valued at $28,000. Bare Financial Services Inc boosted its position in International Business Machines by 114.6% during the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after purchasing an additional 55 shares during the period. Caitlin John LLC purchased a new stake in International Business Machines during the 2nd quarter worth $35,000. Finally, Axiom Investment Management LLC acquired a new stake in International Business Machines in the 1st quarter valued at $36,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Evercore’s sum-of-the-parts analysis values IBM at $290 a share, above its $275 price target, suggesting the firm sees potential value in IBM’s businesses, including quantum computing. IBM Stock Could Be More Than a ‘Safe Haven.' Quantum Computing Is a Big Reason
• Positive Sentiment: IBM’s Quantum System Two is now operational at the University of Chicago, expanding its quantum-computing presence and partnerships in Illinois. The installation strengthens IBM’s research and commercialization ecosystem, though financial returns are likely longer term. IBM Unveils Its Most Advanced Quantum Computer in Chicago
• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform combining quantum and high-performance computing to advance quantum error correction, supporting IBM’s technology roadmap. The initiative targets progress toward a scientifically relevant quantum computer by 2028. Oak Ridge National Laboratory, IBM, and AMD Launch New Co-Design Platform for Quantum Error Correction
• Neutral Sentiment: A recent valuation commentary questions whether IBM’s cash-flow outlook supports the stock’s longer-term share-price gains. The excerpt does not provide a firm valuation conclusion, but it highlights investor scrutiny of the company’s price relative to future cash generation. IBM Stock Could Trade At A Discount After Quantum Computing News

Analyst Ratings Changes

Several research analysts have commented on IBM shares. JPMorgan Chase & Co. raised their price objective on International Business Machines from $250.00 to $269.00 and gave the company an "overweight" rating in a research report on Thursday, October 22nd. Craig Hallum started coverage on International Business Machines in a research report on Wednesday, August 19th. They issued a "buy" rating for the company. Morgan Stanley increased their target price on International Business Machines from $238.00 to $240.00 and gave the company an "equal weight" rating in a research note on Thursday, October 22nd. Royal Bank Of Canada reiterated an "outperform" rating and set a $270.00 target price on shares of International Business Machines in a report on Thursday, October 22nd. Finally, Susquehanna set a $275.00 price target on International Business Machines in a research report on Friday. Nineteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $266.88.

International Business Machines Price Performance

IBM opened at $244.71 on Monday. The company has a fifty day simple moving average of $236.76 and a 200 day simple moving average of $248.64. The firm has a market cap of $231.28 billion, a price-to-earnings ratio of 20.86, a PEG ratio of 2.41 and a beta of 0.78. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46. The company has a current ratio of 0.85, a quick ratio of 0.80 and a debt-to-equity ratio of 1.57.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, topping the consensus estimate of $2.85 by $0.10. The business had revenue of $17.10 billion for the quarter, compared to analysts' expectations of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The company's revenue was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.65 earnings per share. Equities research analysts expect that International Business Machines Corporation will post 12.41 EPS for the current fiscal year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be paid a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. International Business Machines's dividend payout ratio (DPR) is presently 57.63%.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.27% of the stock is owned by insiders.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers.

IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.

The company traces its roots to the Computing-Tabulating-Recording Company, formed in 1911, and adopted the name International Business Machines in 1924.

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