International Business Machines Corporation $IBM Stock: Avantax Planning Partners Inc. Raises Position

Key Points

• Avantax Planning Partners increased its IBM stake by 7.7% in the third quarter, adding 2,813 shares to bring its holding to 39,339 shares, valued at about $8.65 million. Institutional investors collectively owned 58.96% of IBM shares.
• IBM beat quarterly estimates, reporting earnings of $2.95 per share and revenue of $17.10 billion; revenue rose 4.7% year over year. The company declared a quarterly dividend of $1.69 per share, equivalent to a 2.8% yield.
• Analyst sentiment was “Moderate Buy,” with an average price target of $266.88. Recent ratings included Barclays raising its target to $277, while other analysts lowered targets or maintained more cautious views.

Avantax Planning Partners Inc. boosted its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 7.7% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 39,339 shares of the technology company's stock after buying an additional 2,813 shares during the period. Avantax Planning Partners Inc.'s holdings in International Business Machines were worth $8,652,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in IBM. BlackRock Inc. purchased a new position in shares of International Business Machines during the second quarter worth about $21,586,659,000. Bank of America Corp DE purchased a new stake in International Business Machines in the second quarter valued at approximately $4,214,868,000. Bank of New York Mellon Corp purchased a new stake in International Business Machines in the second quarter valued at approximately $2,606,782,000. Legal & General Group Plc purchased a new stake in International Business Machines in the second quarter valued at approximately $1,874,733,000. Finally, Wellington Management Group LLP lifted its position in International Business Machines by 2,362.2% during the second quarter. Wellington Management Group LLP now owns 6,549,393 shares of the technology company's stock valued at $1,841,755,000 after purchasing an additional 6,283,395 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Price Performance

Shares of International Business Machines stock 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. International Business Machines Corporation has a one year low of $199.19 and a one year high of $332.46. The business's 50 day simple moving average is $236.76 and its two-hundred day simple moving average is $248.64. The stock has a market capitalization of $231.28 billion, a P/E ratio of 20.86, a price-to-earnings-growth ratio of 2.41 and a beta of 0.78.

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

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 annualized dividend and a yield of 2.8%. International Business Machines's dividend payout ratio is presently 57.63%.

Analyst Ratings Changes

A number of equities analysts have commented on IBM shares. Barclays boosted their price target on shares of International Business Machines from $262.00 to $277.00 and gave the stock an "overweight" rating in a research note on Thursday, October 22nd. Craig Hallum began coverage on shares of International Business Machines in a research report on Wednesday, August 19th. They set a "buy" rating on the stock. Argus dropped their price objective on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a report on Thursday, July 16th. Sanford C. Bernstein cut their target price on shares of International Business Machines from $280.00 to $230.00 and set a "market perform" rating for the company in a research report on Thursday, July 23rd. Finally, Truist Financial set a $260.00 target price on shares of International Business Machines in a research report on Thursday, October 22nd. Nineteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $266.88.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares of the company's stock, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is owned by insiders.

International Business Machines News Summary

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

International Business Machines Company Profile

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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