Fairtree Asset Management Pty Ltd Invests $1.58 Million in International Business Machines Corporation $IBM

Key Points

• Fairtree Asset Management initiated a $1.58 million IBM position by purchasing 5,633 shares in the second quarter. Institutional investors and hedge funds collectively own 58.96% of IBM’s outstanding stock.
• IBM reported quarterly earnings of $2.93 per share, in line with analyst estimates, while revenue of $17.16 billion fell short of the $17.46 billion consensus but increased 1.1% year over year.
• IBM declared a quarterly dividend of $1.69 per share, equivalent to $6.76 annually and a 2.9% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $265.90.

Fairtree Asset Management Pty Ltd bought a new stake in International Business Machines Corporation (NYSE:IBM - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 5,633 shares of the technology company's stock, valued at approximately $1,584,000.

A number of other institutional investors have also added to or reduced their stakes in IBM. BlackRock Inc. bought a new position in shares of International Business Machines in the 2nd quarter worth $21,586,659,000. State Street Corp increased its stake in International Business Machines by 1.0% during the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock valued at $16,290,452,000 after purchasing an additional 518,321 shares in the last quarter. Geode Capital Management LLC raised its holdings in International Business Machines by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock worth $6,679,105,000 after buying an additional 336,069 shares during the last quarter. Capital World Investors raised its holdings in International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock worth $6,523,720,000 after buying an additional 4,976,756 shares during the last quarter. Finally, Bank of America Corp DE lifted its stake in shares of International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock valued at $3,893,669,000 after buying an additional 1,049,602 shares in the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Trading Up 0.1%

NYSE:IBM opened at $234.87 on Friday. International Business Machines Corporation has a 52 week low of $199.19 and a 52 week high of $332.46. The firm has a 50-day moving average price of $241.67 and a two-hundred day moving average price of $247.13. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The firm has a market cap of $221.28 billion, a price-to-earnings ratio of 20.84, a price-to-earnings-growth ratio of 2.24 and a beta of 0.71.

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 for the quarter, hitting analysts' consensus estimates of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The company's revenue was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.80 EPS. On average, equities analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

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 paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines's dividend payout ratio is 59.98%.

Wall Street Analyst Weigh In

IBM has been the subject of several recent research reports. HSBC set a $175.00 target price on shares of International Business Machines and gave the stock a "reduce" rating in a research report on Thursday, July 16th. Wedbush set a $350.00 price target on International Business Machines in a research note on Tuesday, June 2nd. BMO Capital Markets decreased their price objective on International Business Machines from $270.00 to $230.00 and set a "market perform" rating for the company in a report on Thursday, July 23rd. Robert W. Baird started coverage on International Business Machines in a research note on Tuesday, July 21st. They issued a "neutral" rating and a $230.00 price objective for the company. Finally, Argus dropped their target price on International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a report on Thursday, July 16th. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $265.90.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of International Business Machines 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 sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.27% of the stock is currently owned by corporate insiders.

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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