Envestnet Portfolio Solutions Inc. Buys 9,883 Shares of International Business Machines Corporation $IBM

Key Points

• Envestnet Portfolio Solutions increased its IBM stake by 39.5% in the second quarter, buying 9,883 shares to bring its holdings to 34,908 shares valued at approximately $9.7 million. Institutional investors collectively own 58.96% of IBM.
• IBM’s latest quarterly results met earnings expectations at $2.93 per share, but revenue of $17.16 billion fell short of analyst estimates. The company declared a quarterly dividend of $1.69 per share, representing a 2.9% annualized yield.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $265.40, although several firms recently lowered their targets. IBM shares opened at $233.40, below both their 50-day and 200-day moving averages, while its quantum-computing roadmap provides a potential longer-term growth catalyst.

Envestnet Portfolio Solutions Inc. raised its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 39.5% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 34,908 shares of the technology company's stock after buying an additional 9,883 shares during the period. Envestnet Portfolio Solutions Inc.'s holdings in International Business Machines were worth $9,723,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also added to or reduced their stakes in the company. Brighton Jones LLC raised its position in International Business Machines by 12.4% during the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after purchasing an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC grew its position in shares of International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after buying an additional 186 shares in the last quarter. Jump Financial LLC bought a new position in shares of International Business Machines during the 2nd quarter worth $211,000. Ieq Capital LLC increased its stake in shares of International Business Machines by 2.2% during the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after buying an additional 843 shares during the period. Finally, Vivaldi Capital Management LP raised its holdings in shares of International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after acquiring an additional 106 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM successfully connected and cooled two modular cryogenic systems to below 15 millikelvin, creating an architecture intended to link hundreds of quantum chips. The company says the design supports its goal of a 1,000-programmable-qubit system and the planned Quantum Starling fault-tolerant computer in 2029. IBM Connects Its First Modular Cryogenic Systems in Milestone Toward Fault-Tolerant Quantum Computing
• Positive Sentiment: The quantum announcement has generated favorable coverage and previously supported gains in IBM shares, reinforcing the company’s positioning in the emerging quantum-computing race. If IBM meets its roadmap, the technology could create a significant long-term growth opportunity beyond its traditional software, consulting and infrastructure businesses. IBM Clears Major Hardware Hurdle on the Path to Its Quantum Supercomputer
• Neutral Sentiment: IBM-related customer news highlighted continued use of IBM Maximo software for industrial safety and asset management. The award provides third-party validation for the platform, but its near-term financial impact appears limited. CEPR and Cohesive Receive Maximo Award for Power Plant Health and Safety Excellence
• Negative Sentiment: A law firm announced an investigation into possible securities-law violations following IBM’s substantial recent decline. The announcement does not establish wrongdoing, but it adds headline and litigation risk while potentially undermining investor confidence. IBM Investor Reminder: Securities Fraud Investigation
• Negative Sentiment: Recent earnings showed revenue below analyst expectations even though EPS matched consensus, while commentary comparing IBM with Accenture questioned IBM’s relative dividend and financial appeal. With the stock below its 50-day and 200-day moving averages, investors may be demanding clearer near-term growth before assigning more value to the quantum opportunity. IBM vs. Accenture: The Better Dividend Stock May Surprise You

Analyst Ratings Changes

IBM has been the subject of a number of research reports. Wolfe Research lowered shares of International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. Citigroup reduced their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a report on Friday, July 24th. Weiss Ratings downgraded shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, June 24th. JPMorgan Chase & Co. cut their price objective on shares of International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday, July 17th. Finally, Needham & Company LLC began coverage on shares of International Business Machines in a research note on Wednesday, June 3rd. They issued a "buy" rating for the company. Sixteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, International Business Machines currently has a consensus rating of "Moderate Buy" and an average target price of $265.40.

International Business Machines Price Performance

IBM opened at $233.40 on Friday. The firm has a market capitalization of $219.89 billion, a PE ratio of 20.71, a price-to-earnings-growth ratio of 2.33 and a beta of 0.70. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The business's 50-day moving average is $247.90 and its two-hundred day moving average is $250.98. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same period in the prior year, the firm posted $2.80 earnings per share. The company's quarterly revenue was up 1.1% on a year-over-year basis. Research analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines's dividend payout ratio is presently 59.98%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source