International Business Machines Corporation $IBM is Genus Capital Management Inc.'s 6th Largest Position

Key Points

• Genus Capital Management increased its IBM holdings by 239% in the fourth quarter, making IBM its 6th largest position at 2.1% of the portfolio, worth about $18.1 million.
• IBM beat quarterly expectations, reporting $1.91 EPS versus the $1.81 estimate and revenue of $15.92 billion, up 9.5% year over year. Analysts currently rate the stock a Moderate Buy with an average price target of $294.41.
• The company raised its quarterly dividend to $1.69 per share, or $6.76 annually, yielding about 2.7%. IBM also remains in focus for its push into quantum computing, including a planned U.S. quantum foundry backed by federal support.

Genus Capital Management Inc. lifted its holdings in International Business Machines Corporation (NYSE:IBM - Free Report) by 239.0% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 61,227 shares of the technology company's stock after purchasing an additional 43,165 shares during the quarter. International Business Machines accounts for approximately 2.1% of Genus Capital Management Inc.'s investment portfolio, making the stock its 6th largest position. Genus Capital Management Inc.'s holdings in International Business Machines were worth $18,136,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Family CFO Inc purchased a new position in International Business Machines during the fourth quarter worth $25,000. Joseph Group Capital Management purchased a new position in International Business Machines during the fourth quarter worth $28,000. SWAN Capital LLC purchased a new position in International Business Machines during the third quarter worth $28,000. LFA Lugano Financial Advisors SA purchased a new position in International Business Machines during the fourth quarter worth $31,000. Finally, DecisionPoint Financial LLC boosted its stake 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 buying an additional 100 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Citigroup assumed coverage on shares of International Business Machines in a research note on Friday, April 10th. They set a "buy" rating and a $285.00 price objective for the company. BMO Capital Markets dropped their price objective on shares of International Business Machines from $290.00 to $270.00 and set a "market perform" rating for the company in a research note on Thursday, April 23rd. Erste Group Bank lowered shares of International Business Machines from a "buy" rating to a "hold" rating in a research note on Wednesday, February 18th. Jefferies Financial Group dropped their price objective on shares of International Business Machines from $370.00 to $320.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Finally, Stifel Nicolaus set a $290.00 price objective on shares of International Business Machines in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $294.41.

International Business Machines Stock Performance

IBM stock opened at $253.88 on Monday. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The business has a 50-day moving average price of $238.70 and a 200 day moving average price of $272.21. The company has a market capitalization of $238.62 billion, a P/E ratio of 22.45, a PEG ratio of 2.63 and a beta of 0.58. International Business Machines Corporation has a 1-year low of $212.34 and a 1-year high of $324.90.

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

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a $1.69 dividend. The ex-dividend date is Friday, May 8th. This is an increase from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. International Business Machines's dividend payout ratio is presently 59.77%.

International Business Machines News Summary

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

• Positive Sentiment: IBM and the U.S. Commerce Department announced a plan to launch America’s first purpose-built quantum foundry, with IBM set to receive the largest share of federal support and contribute matching capital. IBM and U.S. Department of Commerce Announce America's First Purpose-Built Quantum Foundry, Supported by Proposed $1 Billion CHIPS Award
• Positive Sentiment: Analysts and media reports say the quantum funding package is a major new catalyst for IBM, helping drive strong share-price momentum and lifting sentiment around the stock’s long-term growth prospects. IBM shares extend rally as Wedbush calls US quantum investment a "new catalyst"
• Positive Sentiment: IBM’s push into quantum computing and related hot tech segments is being viewed as evidence the company is expanding beyond legacy businesses into higher-growth opportunities. Why IBM Stock Was Rocking it This Week
• Neutral Sentiment: Some coverage highlights that IBM’s valuation, debt load, and execution risk will matter as the company commits capital to the quantum foundry project. IBM’s US$1b Anderon Quantum Foundry Puts Valuation And Debt In Focus

Insider Buying and Selling at International Business Machines

In other news, Director Michael Miebach bought 434 shares of International Business Machines stock in a transaction on Wednesday, February 25th. The stock was acquired at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the acquisition, the director owned 434 shares of the company's stock, valued at $101,265.22. This trade represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.27% of the stock is owned by 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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