International Business Machines Corporation $IBM Stake Reduced by Global Assets Advisory LLC

Key Points

• Global Assets Advisory LLC reduced its IBM stake by 21.3% in the fourth quarter, selling 2,569 shares and ending with 9,475 shares valued at about $2.81 million.
• IBM reported better-than-expected quarterly results, with earnings of $1.91 per share versus $1.81 expected and revenue of $15.92 billion, up 9.5% year over year.
• The company also raised its quarterly dividend to $1.69 per share, while analysts remain broadly constructive with a consensus rating of “Moderate Buy” and an average target price of $294.41.

Global Assets Advisory LLC cut its holdings in International Business Machines Corporation (NYSE:IBM - Free Report) by 21.3% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 9,475 shares of the technology company's stock after selling 2,569 shares during the quarter. International Business Machines comprises about 0.8% of Global Assets Advisory LLC's investment portfolio, making the stock its 28th biggest holding. Global Assets Advisory LLC's holdings in International Business Machines were worth $2,806,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the business. Capital World Investors raised its holdings in International Business Machines by 13.9% during the 3rd quarter. Capital World Investors now owns 17,045,156 shares of the technology company's stock worth $4,809,461,000 after buying an additional 2,077,506 shares during the period. Vanguard Group Inc. raised its holdings in International Business Machines by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock worth $28,796,390,000 after buying an additional 1,439,824 shares during the period. First Trust Advisors LP raised its holdings in International Business Machines by 39.6% during the 3rd quarter. First Trust Advisors LP now owns 3,052,880 shares of the technology company's stock worth $861,401,000 after buying an additional 865,253 shares during the period. Franklin Resources Inc. raised its holdings in International Business Machines by 64.7% during the 3rd quarter. Franklin Resources Inc. now owns 2,162,741 shares of the technology company's stock worth $610,239,000 after buying an additional 849,500 shares during the period. Finally, Amundi raised its holdings in International Business Machines by 17.9% during the 3rd quarter. Amundi now owns 4,777,516 shares of the technology company's stock worth $1,382,695,000 after buying an additional 725,191 shares during the period. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Trading Up 0.0%

NYSE:IBM opened at $253.88 on Tuesday. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. International Business Machines Corporation has a fifty-two week low of $212.34 and a fifty-two week high of $324.90. The stock's 50-day moving average is $238.83 and its two-hundred day moving average is $271.88. The stock has a market cap of $238.62 billion, a PE ratio of 22.45, a price-to-earnings-growth ratio of 2.63 and a beta of 0.58.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results 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. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion for the quarter, compared to analysts' expectations of $15.60 billion. During the same quarter in the previous year, the business posted $1.60 EPS. The business's revenue for the quarter was up 9.5% on a year-over-year basis. As a group, equities research analysts forecast 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 announced a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be paid a dividend of $1.69 per share. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 2.7%. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

Insiders Place Their Bets

In other International Business Machines news, Director Michael Miebach bought 434 shares of the stock in a transaction on Wednesday, February 25th. The shares were bought at an average price of $233.33 per share, with a total value of $101,265.22. Following the purchase, the director directly owned 434 shares in the company, valued at $101,265.22. The trade was a ∞ increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.27% of the stock is currently owned by company insiders.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM is being linked to a major U.S. government quantum-computing funding push, which has lifted sentiment across the sector and reinforced the view that IBM could be a key long-term beneficiary of federal investment in the technology. Article Title
• Positive Sentiment: Articles about Trump’s $2 billion quantum push and a $1 billion investment tied to an IBM-backed quantum foundry have strengthened the “IBM as a quantum leader” narrative, which may support the stock. Article Title
• Positive Sentiment: IBM’s India executive said the country’s AI ambitions depend on workforce re-skilling and policy support, keeping IBM in the conversation as a major enterprise AI and consulting player in a large growth market. Article Title
• Neutral Sentiment: Jim Cramer said IBM “should be doing better,” echoing a view that the company’s fundamentals and strategic positioning may be stronger than its recent share performance has implied. Article Title
• Negative Sentiment: IBM is also winding down its Russia business, which is a sign of continued geopolitical disruption and may modestly weigh on revenue expectations, though the financial impact appears limited. Article Title

Wall Street Analysts Forecast Growth

Several research firms have issued reports on IBM. Stifel Nicolaus set a $290.00 price objective on International Business Machines in a report on Friday. DZ Bank upgraded International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective on the stock in a report on Friday, April 24th. Erste Group Bank downgraded International Business Machines from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. Citigroup began coverage on International Business Machines in a report on Friday, April 10th. They set a "buy" rating and a $285.00 price objective on the stock. Finally, Royal Bank Of Canada cut their price objective on International Business Machines from $330.00 to $300.00 and set an "outperform" rating on the stock in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $294.41.

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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