Intech Investment Management LLC Sells 4,566 Shares of International Business Machines Corporation $IBM

Key Points

• Intech Investment Management trimmed its IBM stake by 3.0% in the fourth quarter, selling 4,566 shares and ending with 146,917 shares valued at about $43.5 million.
• IBM is making major strategic bets, including more than $10 billion for quantum computing and $5 billion for Project Lightwell, a move aimed at strengthening its AI, cybersecurity, and enterprise software capabilities.
• The company recently beat quarterly expectations with EPS of $1.91 on revenue of $15.92 billion, and it also raised its dividend slightly to $1.69 per share quarterly.

Intech Investment Management LLC decreased its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 3.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 146,917 shares of the technology company's stock after selling 4,566 shares during the quarter. Intech Investment Management LLC's holdings in International Business Machines were worth $43,518,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Family CFO Inc bought a new stake in shares of International Business Machines in the 4th quarter worth $25,000. Joseph Group Capital Management bought a new stake in International Business Machines during the fourth quarter worth $28,000. SWAN Capital LLC bought a new stake in International Business Machines during the third quarter worth $28,000. LFA Lugano Financial Advisors SA bought a new stake in International Business Machines during the fourth quarter worth $31,000. Finally, DecisionPoint Financial LLC lifted its holdings in International Business Machines by 1,666.7% during the fourth quarter. DecisionPoint Financial LLC now owns 106 shares of the technology company's stock worth $31,000 after acquiring an additional 100 shares during the period. Institutional investors own 58.96% of the company's stock.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM announced it will invest more than $10 billion in quantum computing over the next five years, aiming to build a large-scale, error-corrected quantum computer by 2029. Investors appear to be betting this could strengthen IBM’s position in a high-growth, strategically important technology area. IBM to invest $10 billion for large-scale quantum computer by 2029
• Positive Sentiment: The company also committed $5 billion to Project Lightwell, a Red Hat-backed initiative to improve open-source software security with AI tools and more than 20,000 engineers. That push could expand IBM’s cybersecurity and enterprise software footprint while creating a new revenue opportunity. IBM commits $5 billion to secure open-source software
• Positive Sentiment: Commentary from analysts and media outlets says the spending plans may help “future-proof” IBM by positioning it more aggressively in AI, quantum computing, and cybersecurity, which has added to bullish sentiment around the stock. IBM shares rise after unveiling $15B cybersecurity and quantum investment plan
• Neutral Sentiment: IBM also reported a legal development involving older former HR workers’ age discrimination claims, but this appears less likely to move the stock materially than the strategic investment announcements. IBM Ditches Laid-Off Older HR Workers’ Age Discrimination Claims

International Business Machines Price Performance

IBM stock opened at $264.25 on Friday. The firm has a 50 day moving average of $239.22 and a 200-day moving average of $270.79. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. International Business Machines Corporation has a 12 month low of $212.34 and a 12 month high of $324.90. The firm has a market capitalization of $248.36 billion, a P/E ratio of 23.36, a price-to-earnings-growth ratio of 2.64 and a beta of 0.58.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. During the same period in the previous year, the business posted $1.60 earnings per share. International Business Machines's revenue for the quarter was up 9.5% on a year-over-year basis. As a group, sell-side analysts predict that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, May 8th. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

Analyst Ratings Changes

IBM has been the subject of several research reports. Erste Group Bank lowered shares of International Business Machines from a "buy" rating to a "hold" rating in a research report on Wednesday, February 18th. HSBC upgraded shares of International Business Machines from a "reduce" rating to a "hold" rating and increased their price target for the company from $218.00 to $231.00 in a research report on Tuesday, April 28th. Stifel Nicolaus set a $290.00 price target on shares of International Business Machines in a research report on Friday, May 22nd. Citigroup initiated coverage on shares of International Business Machines in a research report on Friday, April 10th. They set a "buy" rating and a $285.00 price target for the company. Finally, DZ Bank upgraded shares of International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price target for the company in a research report on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $294.41.

International Business Machines Profile

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.