CFO Capital Management LLC Has $1.43 Million Holdings in International Business Machines Corporation $IBM

Key Points

• CFO Capital Management LLC cut its IBM stake by 32% in the first quarter, selling 2,771 shares and ending with 5,897 shares valued at about $1.43 million. IBM now makes up about 1.1% of the firm’s portfolio.
• Analyst sentiment remains mostly positive despite some mixed calls, with IBM carrying an average rating of “Moderate Buy” and a consensus price target of $307.17. In total, 14 analysts rate the stock a Buy, 10 a Hold, and 1 a Sell.
• IBM recently issued a weaker-than-expected Q2 outlook, warning of revenue around $17.2 billion and adjusted EPS of $2.93 below estimates. Management said delayed deal closures and a shift in customer spending toward AI infrastructure weighed on results.

CFO Capital Management LLC decreased its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 32.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 5,897 shares of the technology company's stock after selling 2,771 shares during the quarter. International Business Machines accounts for approximately 1.1% of CFO Capital Management LLC's investment portfolio, making the stock its 22nd largest position. CFO Capital Management LLC's holdings in International Business Machines were worth $1,429,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the company. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines during the 4th quarter worth approximately $25,000. Family CFO Inc acquired a new position in International Business Machines during the fourth quarter valued at approximately $25,000. Joseph Group Capital Management bought a new stake in International Business Machines during the fourth quarter worth $28,000. Cornerstone Financial Management LLC acquired a new stake in International Business Machines in the fourth quarter valued at about $28,000. Finally, SWAN Capital LLC bought a new position in International Business Machines in the third quarter valued at about $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

IBM has been the subject of several research analyst reports. Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a research note on Sunday, June 21st. Royal Bank Of Canada restated an "outperform" rating on shares of International Business Machines in a research note on Tuesday, June 23rd. Needham & Company LLC started coverage on shares of International Business Machines in a research report on Wednesday, June 3rd. They set a "buy" rating for the company. Jefferies Financial Group initiated coverage on shares of International Business Machines in a research note on Tuesday, June 23rd. They issued a "buy" rating for the company. Finally, Roth Capital restated a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Fourteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $307.17.

International Business Machines News Summary

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

• Negative Sentiment: IBM reported preliminary Q2 revenue of about $17.2 billion and adjusted EPS of $2.93, both below estimates, raising concerns about near-term growth and execution. Reuters: IBM expects second-quarter revenue below estimates
• Negative Sentiment: CEO Arvind Krishna said the company “faltered,” citing delayed deal closures and customers shifting budgets toward AI infrastructure and memory chips, which hurt software and infrastructure sales. CNBC: IBM warns second-quarter earnings fell short of expectations
• Negative Sentiment: The warning is dragging other software and IT services names lower, reinforcing fears that enterprise spending is moving away from traditional software vendors and toward AI hardware/cybersecurity. Investor's Business Daily: Stock Market Jumps As Inflation Eases; IBM Warns

International Business Machines Stock Performance

Shares of International Business Machines stock opened at $216.59 on Wednesday. The stock has a market cap of $203.57 billion, a price-to-earnings ratio of 19.15, a P/E/G ratio of 2.80 and a beta of 0.68. International Business Machines Corporation has a twelve month low of $212.34 and a twelve month high of $332.46. The company's fifty day moving average is $264.70 and its 200 day moving average is $265.20. 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, beating analysts' consensus estimates 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 firm had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same quarter in the previous year, the company posted $1.60 EPS. The business's revenue was up 9.5% on a year-over-year basis. Sell-side analysts forecast that International Business Machines Corporation will post 12.45 EPS for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a dividend of $1.69 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 3.1%. This is a boost from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is currently 59.77%.

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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