International Business Machines Corporation $IBM Position Cut by Kornitzer Capital Management Inc. KS

Key Points

• Kornitzer Capital Management trimmed its IBM stake by 1.0% in the third quarter, selling 2,585 shares. It retained 248,910 shares valued at about $54.7 million.
• IBM reported quarterly EPS of $2.95, topping the $2.85 consensus, while revenue of $17.1 billion beat estimates and rose 4.7% year over year.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $266.88. IBM also advanced its quantum-computing efforts through a new Chicago installation and a research partnership with AMD and Oak Ridge National Laboratory.

Kornitzer Capital Management Inc. KS lessened its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 1.0% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 248,910 shares of the technology company's stock after selling 2,585 shares during the period. International Business Machines comprises 1.0% of Kornitzer Capital Management Inc. KS's portfolio, making the stock its 22nd largest position. Kornitzer Capital Management Inc. KS's holdings in International Business Machines were worth $54,743,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of International Business Machines during the 2nd quarter valued at approximately $21,586,659,000. State Street Corp lifted its stake in International Business Machines by 2.7% during the second quarter. State Street Corp now owns 56,045,055 shares of the technology company's stock worth $15,760,430,000 after purchasing an additional 1,450,562 shares during the last quarter. Bank of America Corp DE boosted its holdings in 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 worth $3,893,669,000 after purchasing an additional 1,049,602 shares during the period. Bank of New York Mellon Corp bought a new stake in International Business Machines during the second quarter valued at $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of International Business Machines by 0.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company's stock worth $2,143,245,000 after purchasing an additional 53,388 shares during the period. Institutional investors and hedge funds 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: Evercore’s sum-of-the-parts analysis values IBM at $290 a share, above its $275 price target, suggesting the firm sees potential value in IBM’s businesses, including quantum computing. IBM Stock Could Be More Than a ‘Safe Haven.' Quantum Computing Is a Big Reason
• Positive Sentiment: IBM’s Quantum System Two is now operational at the University of Chicago, expanding its quantum-computing presence and partnerships in Illinois. The installation strengthens IBM’s research and commercialization ecosystem, though financial returns are likely longer term. IBM Unveils Its Most Advanced Quantum Computer in Chicago
• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform combining quantum and high-performance computing to advance quantum error correction, supporting IBM’s technology roadmap. The initiative targets progress toward a scientifically relevant quantum computer by 2028. Oak Ridge National Laboratory, IBM, and AMD Launch New Co-Design Platform for Quantum Error Correction
• Neutral Sentiment: A recent valuation commentary questions whether IBM’s cash-flow outlook supports the stock’s longer-term share-price gains. The excerpt does not provide a firm valuation conclusion, but it highlights investor scrutiny of the company’s price relative to future cash generation. IBM Stock Could Trade At A Discount After Quantum Computing News

Wall Street Analyst Weigh In

Several research analysts have recently commented on the stock. Jefferies Financial Group lifted their price target on shares of International Business Machines from $270.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, October 22nd. Craig Hallum started coverage on shares of International Business Machines in a research note on Wednesday, August 19th. They set a "buy" rating on the stock. Royal Bank Of Canada reissued an "outperform" rating and issued a $270.00 target price on shares of International Business Machines in a report on Thursday, October 22nd. Stifel Nicolaus lifted their target price on International Business Machines from $235.00 to $260.00 and gave the company a "buy" rating in a research note on Thursday, October 22nd. Finally, Weiss Ratings lowered International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, October 29th. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $266.88.

International Business Machines Price Performance

Shares of NYSE IBM opened at $244.71 on Friday. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80. The firm has a market capitalization of $231.28 billion, a PE ratio of 20.86, a P/E/G ratio of 2.41 and a beta of 0.78. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The business's fifty day moving average price is $236.76 and its two-hundred day moving average price is $248.64.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.85 by $0.10. The company had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The company's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.65 earnings per share. On average, research analysts expect that International Business Machines Corporation will post 12.41 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be given a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a yield of 2.8%. International Business Machines's dividend payout ratio (DPR) is currently 57.63%.

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares of the company's stock, 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 owned by insiders.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers.

IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.

The company traces its roots to the Computing-Tabulating-Recording Company, formed in 1911, and adopted the name International Business Machines in 1924.

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