Commonwealth Equity Services LLC Sells 30,894 Shares of International Business Machines Corporation $IBM

Key Points

• Commonwealth Equity Services reduced its IBM stake by 5.4%, selling 30,894 shares in the third quarter; it retained 536,655 shares valued at about $118 million.
• IBM beat quarterly earnings and revenue estimates, reporting EPS of $2.95 and revenue of $17.10 billion; revenue rose 4.7% year over year. The company also declared a quarterly dividend of $1.69 per share.
• Analysts have a “Moderate Buy” consensus on IBM, with an average price target of $266.88; institutional investors and hedge funds own about 59% of its shares.

Commonwealth Equity Services LLC lessened its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 5.4% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 536,655 shares of the technology company's stock after selling 30,894 shares during the quarter. Commonwealth Equity Services LLC owned approximately 0.06% of International Business Machines worth $118,027,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also modified their holdings of the company. BlackRock Inc. bought a new stake in shares of International Business Machines in the 2nd quarter valued at approximately $21,586,659,000. Bank of America Corp DE acquired a new position in shares of International Business Machines in the 2nd quarter worth approximately $4,214,868,000. Bank of New York Mellon Corp bought a new position in shares of International Business Machines during the 2nd quarter worth approximately $2,606,782,000. Legal & General Group Plc bought a new position in shares of International Business Machines during the 2nd quarter worth approximately $1,874,733,000. Finally, Wellington Management Group LLP boosted its stake in International Business Machines by 2,362.2% in the 2nd quarter. Wellington Management Group LLP now owns 6,549,393 shares of the technology company's stock valued at $1,841,755,000 after buying an additional 6,283,395 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Trading Down 1.0%

IBM opened at $244.71 on Friday. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The stock has a market capitalization of $231.28 billion, a PE ratio of 20.86, a PEG ratio of 2.49 and a beta of 0.78. The company has a current ratio of 0.85, a quick ratio of 0.80 and a debt-to-equity ratio of 1.57. The firm has a 50-day moving average price of $236.76 and a two-hundred day moving average price of $248.64.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.85 by $0.10. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The company had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. During the same period in the prior year, the business earned $2.65 earnings per share. International Business Machines's quarterly revenue was up 4.7% on a year-over-year basis. As a group, equities analysts anticipate that International Business Machines Corporation will post 12.41 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be given a dividend of $1.69 per share. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.8%. International Business Machines's payout ratio is presently 57.63%.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of the company'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 transaction, the senior vice president owned 47,800 shares of the company's stock, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.27% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on IBM. BMO Capital Markets upped their price target on International Business Machines from $230.00 to $265.00 and gave the company a "market perform" rating in a research report on Thursday, October 22nd. The Goldman Sachs Group reissued a "buy" rating and set a $300.00 price objective on shares of International Business Machines in a report on Thursday, October 22nd. Argus reduced their target price on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a research note on Thursday, July 16th. Craig Hallum initiated coverage on shares of International Business Machines in a report on Wednesday, August 19th. They issued a "buy" rating on the stock. Finally, Morgan Stanley lifted their price target on shares of International Business Machines from $238.00 to $240.00 and gave the company an "equal weight" rating in a report on Thursday, October 22nd. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $266.88.

International Business Machines News Roundup

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

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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