International Business Machines Corporation $IBM Stock: Caldwell Trust Co Reduces Holdings

Key Points

• Caldwell Trust Co cut its IBM stake by 25.8% in the third quarter, selling 5,858 shares; it held 16,822 shares valued at about $3.7 million after the sale.
• IBM beat quarterly estimates, reporting EPS of $2.95 and revenue of $17.1 billion; revenue rose 4.7% year over year.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $266.12. IBM also declared a quarterly dividend of $1.69 per share, equivalent to a 2.7% yield.

Caldwell Trust Co lowered its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 25.8% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 16,822 shares of the technology company's stock after selling 5,858 shares during the quarter. Caldwell Trust Co's holdings in International Business Machines were worth $3,700,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in IBM. 3Chopt Investment Partners LLC raised its position in International Business Machines by 9.9% in the third quarter. 3Chopt Investment Partners LLC now owns 3,206 shares of the technology company's stock valued at $705,000 after purchasing an additional 288 shares during the period. Team Financial Group LLC acquired a new position in shares of International Business Machines during the third quarter worth about $81,000. Southern Financial Group LLC boosted its position in shares of International Business Machines by 7.6% in the third quarter. Southern Financial Group LLC now owns 1,659 shares of the technology company's stock worth $365,000 after buying an additional 117 shares during the period. Rakuten Investment Management Inc. boosted its position in shares of International Business Machines by 10.0% in the third quarter. Rakuten Investment Management Inc. now owns 168,956 shares of the technology company's stock worth $37,169,000 after buying an additional 15,334 shares during the period. Finally, Provenance Wealth Advisors LLC boosted its position in shares of International Business Machines by 56.5% in the third quarter. Provenance Wealth Advisors LLC now owns 7,493 shares of the technology company's stock worth $1,648,000 after buying an additional 2,705 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

Key International Business Machines News

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

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction that occurred 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 of the company's stock, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.27% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several brokerages recently commented on IBM. Evercore dropped their target price on International Business Machines from $310.00 to $250.00 and set an "outperform" rating on the stock in a report on Thursday, July 16th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $300.00 price objective on shares of International Business Machines in a research report on Thursday, October 22nd. Truist Financial set a $260.00 target price on shares of International Business Machines in a research report on Thursday, October 22nd. Citigroup upped their target price on shares of International Business Machines from $245.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday, October 22nd. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $270.00 price target on shares of International Business Machines in a report on Thursday, October 22nd. Nineteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, International Business Machines presently has a consensus rating of "Moderate Buy" and an average target price of $266.12.

International Business Machines Price Performance

IBM opened at $254.50 on Thursday. The company has a 50-day moving average of $236.29 and a 200-day moving average of $249.17. The company has a market capitalization of $240.53 billion, a P/E ratio of 21.70, a PEG ratio of 2.46 and a beta of 0.78. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.80 and a current ratio of 0.85.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results 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. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The business had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. During the same quarter in the prior year, the business posted $2.65 EPS. The company's revenue for the quarter was up 4.7% on a year-over-year basis. Equities analysts expect that International Business Machines Corporation will post 12.41 EPS 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. Shareholders of record on Tuesday, November 10th will be paid a dividend of $1.69 per share. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a yield of 2.7%. International Business Machines's dividend payout ratio is presently 57.63%.

International Business Machines Company 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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