Erste Asset Management GmbH Grows Position in International Business Machines Corporation $IBM

Key Points

• Erste Asset Management increased its IBM position by 25% in the second quarter, bringing its holdings to 177,342 shares worth approximately $49.3 million. Institutional investors collectively own 58.96% of the company.
• Analyst sentiment remains a Moderate Buy, with 16 Buy, 11 Hold and one Sell rating and a consensus price target of $265.40, although several firms recently lowered their targets.
• IBM’s latest earnings matched expectations at $2.93 per share, but revenue of $17.16 billion fell short of estimates. The company declared a quarterly dividend of $1.69, equivalent to a 2.9% yield.

Erste Asset Management GmbH raised its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 25.0% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 177,342 shares of the technology company's stock after buying an additional 35,453 shares during the period. Erste Asset Management GmbH's holdings in International Business Machines were worth $49,303,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the business. Basepoint Wealth LLC purchased a new stake in International Business Machines in the fourth quarter worth $25,000. Portus Wealth Advisors LLC purchased a new stake in shares of International Business Machines in the 1st quarter worth about $26,000. Joseph Group Capital Management bought a new stake in shares of International Business Machines during the fourth quarter valued at approximately $28,000. Cornerstone Financial Management LLC bought a new position in shares of International Business Machines in the 4th quarter worth about $28,000. Finally, SWAN Capital LLC purchased a new position in shares of International Business Machines during the third quarter valued at approximately $28,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Morgan Stanley dropped their price target on shares of International Business Machines from $293.00 to $190.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 23rd. Susquehanna reduced their price objective on International Business Machines from $303.00 to $225.00 and set a "neutral" rating for the company in a research report on Friday, July 24th. Wedbush set a $350.00 price target on shares of International Business Machines in a research report on Tuesday, June 2nd. Roth Capital reissued a "buy" rating on shares of International Business Machines in a report on Wednesday, June 3rd. Finally, Citigroup decreased their price target on International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Sixteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, International Business Machines currently has an average rating of "Moderate Buy" and a consensus target price of $265.40.

International Business Machines News Summary

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

• Positive Sentiment: IBM completed its acquisition of HRL Laboratories, adding expertise in quantum computing, quantum sensing, advanced communications, materials science and electronics. The deal could strengthen IBM’s long-term quantum and advanced-technology pipeline. IBM Completes Acquisition of HRL Laboratories to Accelerate the Future of Quantum
• Positive Sentiment: The company’s new dual-architecture mainframe processor, developed with Arm Holdings, can execute IBM and Arm instructions natively on the same chip. The technology could broaden IBM Z and LinuxONE’s software ecosystem, support Arm-native applications and improve IBM’s positioning in enterprise AI and infrastructure. What Could IBM Gain From Its First Dual Architecture Mainframe Processor?
• Positive Sentiment: Commentator Jim Cramer said IBM is performing better than its reputation suggests and that the stock deserves more credit. The remarks may support sentiment, although they do not materially change IBM’s fundamentals. Jim Cramer Says IBM Is a Hated Stock That Deserves Better
• Neutral Sentiment: IBM’s quantum milestone involved connecting and cooling two cryogenic modules, while broader industry spending on post-quantum cybersecurity could create future opportunities for IBM. However, these benefits remain longer-term and are difficult to translate into immediate revenue. Quantum Computing Is Raising the Stakes for Cybersecurity
• Negative Sentiment: BTIG reportedly cautioned that the quantum achievement does not yet demonstrate a commercially scalable system, tempering investor enthusiasm and contributing to pressure on IBM’s shares. IBM Stock Falls as BTIG Pours Cold Water on Quantum Computing Milestone
• Negative Sentiment: Recent earnings showed revenue of $17.16 billion, below the $17.46 billion consensus estimate, despite in-line adjusted earnings. Reports also highlighted weak mainframe sales, reinforcing concerns that IBM’s growth and new product benefits may take time to emerge.
• Negative Sentiment: A securities law firm announced an investigation related to IBM’s stock decline. Such notices are often investor-solicitation efforts and do not establish wrongdoing, but they can add near-term headline risk. IBM Securities Notice

International Business Machines Stock Performance

International Business Machines stock opened at $230.15 on Thursday. 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 firm has a market capitalization of $216.83 billion, a P/E ratio of 20.42, a price-to-earnings-growth ratio of 2.30 and a beta of 0.70. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The company's 50-day moving average is $245.07 and its 200 day moving average is $249.17.

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

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's dividend payout ratio is 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.

Want to see what other hedge funds are holding IBM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for International Business Machines Corporation (NYSE:IBM - Free Report).

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