International Business Machines Corporation $IBM Shares Sold by Smallwood Wealth Investment Management LLC

Key Points

• Smallwood Wealth Investment Management cut its IBM stake by 38.3% in the third quarter, selling 2,233 shares and retaining 3,598 shares valued at about $791,000.
• IBM reported quarterly EPS of $2.95, beating the $2.85 consensus, while revenue of $17.1 billion exceeded estimates and grew 4.7% year over year.
• IBM declared a quarterly dividend of $1.69 per share, equivalent to a 2.7% yield; analysts’ consensus rating was “Moderate Buy,” with an average price target of $266.12.

Smallwood Wealth Investment Management LLC cut its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 38.3% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,598 shares of the technology company's stock after selling 2,233 shares during the quarter. Smallwood Wealth Investment Management LLC's holdings in International Business Machines were worth $791,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of International Business Machines in the second quarter valued at about $21,586,659,000. State Street Corp raised its stake in International Business Machines by 2.7% in the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company's stock valued at $15,760,430,000 after purchasing an additional 1,450,562 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of International Business Machines by 7.0% during the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock valued at $3,893,669,000 after buying an additional 1,049,602 shares during the period. Bank of New York Mellon Corp acquired a new stake in shares of International Business Machines during the second quarter worth $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in International Business Machines by 0.7% in the 2nd 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 valued at $2,143,245,000 after buying an additional 53,388 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM hardware was used in a quantum-encryption trial with Quantum X Labs, demonstrating a potential commercial use for its Heron r2 processor in securing sensitive communications. This could help showcase IBM’s quantum infrastructure beyond research. International Business Machines Puts Quantum Encryption To Work On Heron R2
• Positive Sentiment: A separate report highlighted IBM’s AI agent, security and infrastructure launches, along with its renewal as the U.S. Open’s AI and cloud partner through 2031. These offerings and the partnership may reinforce IBM’s positioning in enterprise AI and cloud services. How Investors Are Reacting To IBM AI Product Launches
• Neutral Sentiment: Coverage noted that IBM’s shares had fallen 18.5% over the past year amid AI-disruption worries, margin pressure and stiff competition. Hybrid-cloud demand and rising earnings estimates were cited as potential offsets, leaving the outlook mixed. IBM Plummets 18.5% in the Past Year: Time to Reassess the Stock?
• Negative Sentiment: A comparison with Salesforce characterized IBM’s sales growth as slower and revenue as more volatile, which could weigh on investor confidence in the consistency of its expansion. Salesforce vs. IBM: Comparing Consistent Revenue Expansion Against Slow Sales Growth

International Business Machines Price Performance

NYSE:IBM opened at $254.50 on Thursday. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week high of $332.46. The firm has a market cap of $240.53 billion, a P/E ratio of 21.70, a PEG ratio of 2.46 and a beta of 0.78. The business's 50-day moving average price is $236.29 and its 200 day moving average price is $249.17. The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 1.57.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.10. The firm had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The firm's quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.65 earnings per share. As a group, sell-side analysts predict that International Business Machines Corporation will post 12.41 earnings per share for the current fiscal 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 paid a $1.69 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.7%. International Business Machines's dividend payout ratio (DPR) is currently 57.63%.

Insider Activity at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.27% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several brokerages have commented on IBM. Royal Bank Of Canada restated an "outperform" rating and set a $270.00 price target on shares of International Business Machines in a research note on Thursday, October 22nd. Citic Securities boosted their price target on International Business Machines from $294.00 to $297.00 and gave the stock a "buy" rating in a research note on Wednesday, July 29th. Craig Hallum initiated coverage on shares of International Business Machines in a report on Wednesday, August 19th. They set a "buy" rating for the company. Evercore dropped their price target on International Business Machines from $310.00 to $250.00 and set an "outperform" rating on the stock in a research report on Thursday, July 16th. Finally, HSBC lowered their target price on International Business Machines from $175.00 to $174.00 in a report on Friday, July 24th. Nineteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $266.12.

International Business Machines Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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