Fund Advisors of America Inc FL Makes New $2.55 Million Investment in International Business Machines Corporation $IBM

Key Points

• Fund Advisors of America Inc. FL acquired 9,070 IBM shares worth approximately $2.55 million, making IBM its eighth-largest holding and representing 2.3% of its portfolio. Institutional investors collectively own 58.96% of IBM.
• Analysts maintain a generally positive outlook, with 16 Buy, 11 Hold, and one Sell rating. IBM has a “Moderate Buy” consensus rating and an average price target of $265.90, despite several recent target reductions.
• IBM reported quarterly earnings of $2.93 per share, in line with estimates, while revenue of $17.16 billion fell short of expectations but increased 1.1% year over year. The company also announced a quarterly dividend of $1.69 per share, representing a 2.9% annualized yield.

Fund Advisors of America Inc FL acquired a new position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 9,070 shares of the technology company's stock, valued at approximately $2,550,000. International Business Machines comprises 2.3% of Fund Advisors of America Inc FL's holdings, making the stock its 8th largest position.

Other hedge funds and other institutional investors have also modified their holdings of the company. Shelter Mutual Insurance Co bought a new position in International Business Machines during the second quarter worth $10,824,000. Causey Wealth LLC acquired a new stake in shares of International Business Machines during the 2nd quarter worth about $813,000. Keebeck Wealth Management bought a new stake in shares of International Business Machines during the 2nd quarter worth about $871,000. Keating Financial Advisory Services Inc. bought a new stake in shares of International Business Machines during the 2nd quarter worth about $382,000. Finally, Green Alpha Advisors LLC acquired a new position in International Business Machines in the 2nd quarter valued at about $5,604,000. Institutional investors and hedge funds own 58.96% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on IBM. Jefferies Financial Group cut their price objective on shares of International Business Machines from $320.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, July 21st. Citigroup dropped their price target on International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a report on Friday, July 24th. Sanford C. Bernstein restated a "market perform" rating on shares of International Business Machines in a research note on Thursday, July 16th. Wall Street Zen upgraded International Business Machines from a "sell" rating to a "hold" rating in a research report on Saturday, August 29th. Finally, BMO Capital Markets dropped their target price 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. Sixteen research 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. Based on data from MarketBeat.com, International Business Machines has a consensus rating of "Moderate Buy" and a consensus target price of $265.90.

International Business Machines Stock Down 0.0%

Shares of NYSE IBM opened at $234.87 on Monday. The company has a market cap of $221.28 billion, a price-to-earnings ratio of 20.84, a PEG ratio of 2.24 and a beta of 0.71. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a 12 month low of $199.19 and a 12 month high of $332.46. The stock has a 50-day moving average price of $241.67 and a two-hundred day moving average price of $247.02.

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

International Business Machines Announces Dividend

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

Insider Buying and Selling

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the company's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.27% of the company's stock.

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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