International Business Machines Corporation $IBM Stock Bought by Cardinal Point Capital Management ULC

Key Points

• Cardinal Point Capital Management increased its IBM stake by 8.7% in the third quarter, purchasing 3,398 additional shares and bringing its holdings to 42,431 shares valued at approximately $9.3 million. Institutional investors and hedge funds own 58.96% of IBM.
• IBM reported quarterly earnings of $2.95 per share on $17.10 billion in revenue, exceeding analyst expectations and marking 4.7% year-over-year revenue growth.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $255.76, although several firms recently lowered their targets. IBM shares opened at $250.67, while an executive separately sold 25,000 shares.

Cardinal Point Capital Management ULC grew its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 8.7% during the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 42,431 shares of the technology company's stock after purchasing an additional 3,398 shares during the period. Cardinal Point Capital Management ULC's holdings in International Business Machines were worth $9,332,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Friday Financial grew its position in International Business Machines by 1.9% in the 2nd quarter. Friday Financial now owns 1,903 shares of the technology company's stock valued at $583,000 after buying an additional 35 shares in the last quarter. Trinity Wealth Management LLC increased its stake in International Business Machines by 2.3% during the 2nd quarter. Trinity Wealth Management LLC now owns 1,695 shares of the technology company's stock valued at $477,000 after buying an additional 38 shares during the period. Pettinga Financial Advisors LLC increased its stake in International Business Machines by 3.6% during the 2nd quarter. Pettinga Financial Advisors LLC now owns 1,090 shares of the technology company's stock valued at $307,000 after buying an additional 38 shares during the period. HHM Wealth Advisors LLC raised its position in shares of International Business Machines by 4.6% during the 2nd quarter. HHM Wealth Advisors LLC now owns 928 shares of the technology company's stock worth $261,000 after buying an additional 41 shares in the last quarter. Finally, Basecamp Wealth Advisors LLC raised its position in shares of International Business Machines by 2.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,598 shares of the technology company's stock worth $387,000 after buying an additional 44 shares in the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Trading Up 3.6%

Shares of NYSE:IBM opened at $250.67 on Thursday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a market capitalization of $236.16 billion, a price-to-earnings ratio of 22.24, a PEG ratio of 2.32 and a beta of 0.73. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The company has a 50 day moving average price of $232.36 and a 200 day moving average price of $243.60.

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, beating the consensus estimate of $2.85 by $0.10. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The company had revenue of $17.10 billion for the quarter, compared to analysts' expectations of $16.82 billion. During the same quarter in the prior year, the company earned $2.65 earnings per share. The firm's revenue was up 4.7% on a year-over-year basis. On average, research analysts anticipate that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

Insider Activity

In related 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 value of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.27% of the stock is owned by insiders.

Analysts Set New Price Targets

Several research firms have recently issued reports on IBM. Jefferies Financial Group decreased their price objective on shares of International Business Machines from $320.00 to $260.00 and set a "buy" rating for the company in a report on Tuesday, July 21st. Royal Bank Of Canada reissued an "outperform" rating and set a $270.00 target price on shares of International Business Machines in a report on Tuesday, October 13th. JPMorgan Chase & Co. cut their target price on International Business Machines from $291.00 to $250.00 and set an "overweight" rating for the company in a research report on Friday, July 17th. BMO Capital Markets decreased their price target on International Business Machines from $270.00 to $230.00 and set a "market perform" rating for the company in a research note on Thursday, July 23rd. Finally, Weiss Ratings raised International Business Machines from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, October 14th. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $255.76.

Key International Business Machines News

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

• Positive Sentiment: Q3 results exceeded expectations: IBM reported adjusted earnings of $2.95 per share versus consensus estimates near $2.85-$2.88, while revenue rose approximately 5% year over year to $17.1 billion, ahead of the roughly $16.8 billion forecast. IBM beats on top and bottom lines
• Positive Sentiment: Software and infrastructure growth accelerated: Software revenue increased 8% to $7.8 billion and Infrastructure revenue rose 4% to $3.7 billion. Management said previously delayed infrastructure deals began closing, supporting the view that the prior-quarter slowdown was temporary. IBM raises annual software revenue outlook
• Positive Sentiment: Cash-flow outlook improved: IBM generated $3.0 billion in free cash flow during the quarter and expects full-year free cash flow to increase by more than $1 billion from the prior year. The company maintained its 4%-5% full-year constant-currency revenue-growth forecast. IBM third-quarter results
• Positive Sentiment: CEO Arvind Krishna highlighted momentum in enterprise AI and “Super Intelligence” initiatives, while IBM’s partnerships around open-source AI inference and its quantum-computing strategy add longer-term growth catalysts.
• Neutral Sentiment: IBM’s GAAP net income rose to $2.19 billion from $1.74 billion a year earlier, and the board declared a quarterly dividend of $1.69 per share.
• Negative Sentiment: Gross margin was narrower than expected, which could limit the benefit of revenue growth if elevated AI, infrastructure, or implementation costs persist.

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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