International Business Machines Corporation $IBM Stock Bought by Welch & Forbes LLC

Key Points

• Welch & Forbes increased its IBM stake by 3.7% in the third quarter, adding 2,605 shares to hold 72,271 shares valued at about $15.9 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.95, beating estimates of $2.85, while revenue of $17.1 billion also topped expectations and grew 4.7% year over year.
• IBM announced a quarterly dividend of $1.69 per share, equivalent to a 2.7% annualized yield. Analysts have a “Moderate Buy” consensus rating and an average price target of $266.88.

Welch & Forbes LLC lifted its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 3.7% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 72,271 shares of the technology company's stock after purchasing an additional 2,605 shares during the period. Welch & Forbes LLC's holdings in International Business Machines were worth $15,895,000 as of its most recent filing with the SEC.

A number of other large investors also recently added to or reduced their stakes in IBM. BlackRock Inc. purchased a new stake in International Business Machines during the second quarter valued at about $21,586,659,000. State Street Corp grew its stake in shares of International Business Machines by 2.7% during the second quarter. State Street Corp now owns 56,045,055 shares of the technology company's stock valued at $15,760,430,000 after buying an additional 1,450,562 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock worth $3,893,669,000 after buying an additional 1,049,602 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of International Business Machines in the second quarter worth about $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of International Business Machines by 0.7% in the second 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 worth $2,143,245,000 after buying an additional 53,388 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction dated 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 sale, the senior vice president directly owned 47,800 shares of the company's stock, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.27% of the stock is owned by insiders.

International Business Machines Trading Up 0.5%

Shares of IBM opened at $246.32 on Tuesday. The stock has a market capitalization of $232.80 billion, a P/E ratio of 21.00, a PEG ratio of 2.50 and a beta of 0.78. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46. The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 1.57. The firm has a fifty day simple moving average of $236.97 and a two-hundred day simple moving average of $248.39.

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 (EPS) for the quarter, beating analysts' consensus estimates of $2.85 by $0.10. The firm had revenue of $17.10 billion for the quarter, compared to analysts' expectations of $16.82 billion. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The company's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.65 earnings per share. On average, research analysts anticipate that International Business Machines Corporation will post 12.41 EPS for the current year.

International Business Machines Dividend Announcement

The firm also recently announced 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 annualized dividend and a dividend yield of 2.7%. International Business Machines's dividend payout ratio (DPR) is presently 57.63%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM deployed its first quantum computer in Illinois, at the Illinois Quantum and Microelectronics Park. The installation builds research and industry partnerships and is part of a state initiative expected to create 750 technology jobs. It strengthens IBM’s quantum-computing presence, though commercial returns may take time. Can IBM's Latest Quantum System Boost Illinois' Innovation Future?
• Positive Sentiment: IBM-owned Apptio added connections and cost-management tools to help businesses track AI usage and spending, forecast budgets, and assess investments against business results. The update could help IBM capture demand as enterprises seek to manage the cost of adopting AI. Apptio Expands Portfolio to Help Enterprises Connect AI Spending to Business Value
• Positive Sentiment: Quantum X Labs said its AI-powered error-correction program is running on three IBM quantum processors and showed up to 20% fewer logical decoding failures. This offers a potential third-party validation of IBM hardware, although the announcement comes from Quantum X Labs rather than IBM. Quantum X Labs Expands AI-Powered Quantum Error Correction Program
• Neutral Sentiment: A Seeking Alpha analysis sees IBM’s enterprise AI portfolio and software growth as strengths, but rates the shares Hold, citing competition and a valuation it considers fair. That view suggests limited near-term upside based on its $249 price target. IBM: A Full Enterprise AI Stack, But Rivals Keep It A Hold
• Negative Sentiment: The European Union is suing IBM and partners Atos and Leonardo over repeated delays in developing the bloc’s Entry/Exit border system. The case raises potential legal costs and could weigh on IBM’s reputation and government-contract execution; the reports do not specify the financial exposure. EU sues IBM and partners over troubled border system

Analysts Set New Price Targets

A number of research firms have recently weighed in on IBM. Daiwa Securities Group lowered their target price on International Business Machines from $247.00 to $217.00 and set a "neutral" rating for the company in a research note on Wednesday, July 29th. Jefferies Financial Group raised their price target on International Business Machines from $270.00 to $280.00 and gave the stock a "buy" rating in a research report on Thursday, October 22nd. JPMorgan Chase & Co. raised their price target on International Business Machines from $250.00 to $269.00 and gave the stock an "overweight" rating in a research report on Thursday, October 22nd. Evercore reaffirmed an "outperform" rating on shares of International Business Machines in a research note on Friday. Finally, Wall Street Zen upgraded International Business Machines from a "sell" rating to a "hold" rating in a research report on Saturday, October 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 stock. According to MarketBeat, International Business Machines currently has a consensus rating of "Moderate Buy" and a consensus target price of $266.88.

International Business Machines 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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