International Business Machines Corporation $IBM Shares Purchased by Valpey Financial Services LLC

Key Points

• Valpey Financial Services LLC dramatically increased its IBM stake in the fourth quarter, raising holdings by 27,670.9% to 867,007 shares worth about $256.8 million. IBM now makes up roughly 1.4% of the firm’s portfolio.
• IBM has been drawing attention for major growth investments, including a $5 billion Project Lightwell with Red Hat focused on open-source security and a plan to invest more than $10 billion in quantum computing over the next five years.
• The company recently beat earnings expectations, reporting $1.91 EPS on revenue of $15.92 billion, and it also raised its quarterly dividend to $1.69 per share. Analysts currently rate the stock a consensus Moderate Buy with a target price around $294.41.

Valpey Financial Services LLC boosted its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 27,670.9% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 867,007 shares of the technology company's stock after buying an additional 863,885 shares during the period. International Business Machines accounts for approximately 1.4% of Valpey Financial Services LLC's investment portfolio, making the stock its 18th largest holding. Valpey Financial Services LLC owned 0.09% of International Business Machines worth $256,816,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in IBM. Family CFO Inc acquired a new stake in International Business Machines in the fourth quarter worth $25,000. Basepoint Wealth LLC acquired a new stake in International Business Machines in the fourth quarter worth $25,000. Joseph Group Capital Management acquired a new stake in International Business Machines in the fourth quarter worth $28,000. SWAN Capital LLC acquired a new stake in International Business Machines in the third quarter worth $28,000. Finally, DecisionPoint Financial LLC increased its position in International Business Machines by 1,666.7% in 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 institutional investors and hedge funds.

More International Business Machines News

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

• Positive Sentiment: IBM announced Project Lightwell, a $5 billion initiative with Red Hat to strengthen open-source software security using AI tools and a global team of more than 20,000 engineers. Investors appear to like the potential for IBM to become a key enterprise security partner. IBM and Red Hat Commit $5 Billion to Redefine the Future of Open Source in the AI Era
• Positive Sentiment: IBM also said it will invest more than $10 billion in quantum computing over the next five years, aiming to build a large-scale quantum computer by 2029. That signals major long-term commitment to a high-profile growth market. IBM to invest $10 billion for large-scale quantum computer by 2029
• Positive Sentiment: Several reports noted that the investments could help IBM “future-proof” its business and strengthen its position in enterprise infrastructure, which likely supported buying in the shares. IBM shares rise after unveiling $15B cybersecurity and quantum investment plan
• Neutral Sentiment: IBM’s stock also got attention from a broader article about quantum computing’s commercial breakout, which may have added to positive sentiment around the sector rather than IBM specifically. Quantum Computing's Commercial Breakout Has Arrived
• Neutral Sentiment: One headline about IBM dropping older workers’ age-discrimination claims appears to be a legal cleanup item, but it is not likely the main driver of the stock move today. IBM Ditches Laid-Off Older HR Workers’ Age Discrimination Claims
• Negative Sentiment: A separate article warned that advances in quantum computing could eventually threaten bitcoin and other crypto assets, underscoring the disruptive power of the technology IBM is betting on, though it is not directly negative for IBM itself. Quantus Warns Quantum Computers Could Threaten $2T in Bitcoin and Crypto Assets

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Erste Group Bank lowered International Business Machines from a "buy" rating to a "hold" rating in a research report on Wednesday, February 18th. Citigroup started coverage on International Business Machines in a report on Friday, April 10th. They set a "buy" rating and a $285.00 price target on the stock. Wedbush reissued an "outperform" rating on shares of International Business Machines in a report on Thursday, May 21st. BMO Capital Markets lowered their price target on International Business Machines from $290.00 to $270.00 and set a "market perform" rating on the stock in a report on Thursday, April 23rd. Finally, UBS Group raised International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target on the stock in a report on Wednesday, February 25th. One 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 company. Based on data from MarketBeat.com, International Business Machines has a consensus rating of "Moderate Buy" and a consensus target price of $294.41.

International Business Machines Price Performance

Shares of IBM opened at $264.25 on Friday. The firm has a market capitalization of $248.36 billion, a price-to-earnings ratio of 23.36, a price-to-earnings-growth ratio of 2.64 and a beta of 0.58. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. International Business Machines Corporation has a one year low of $212.34 and a one year high of $324.90. The stock's fifty day moving average is $239.22 and its 200-day moving average is $270.79.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company's quarterly revenue was up 9.5% compared to the same quarter last year. During the same period last year, the company earned $1.60 earnings per share. Equities analysts anticipate that International Business Machines Corporation will post 12.4 EPS for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a dividend of $1.69 per share. The ex-dividend date of this dividend is Friday, May 8th. This is an increase from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 2.6%. International Business Machines's dividend payout ratio is presently 59.77%.

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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