International Business Machines Corporation $IBM Stock: Perpetual Ltd Grows Position

Key Points

• Perpetual Ltd increased its IBM stake by 41.9% in the third quarter, bringing its holdings to 15,683 shares valued at approximately $3.45 million. Institutional investors collectively own 58.96% of IBM.
• Analyst sentiment is mixed: IBM has an overall “Hold” consensus and an average price target of $252.96, while recent targets ranged from $217 to $270. The stock recently traded around $230.76.
• IBM reported quarterly revenue growth of 1.1% and earnings in line with estimates, while maintaining a quarterly dividend of $1.69, equivalent to a roughly 2.9% yield. Its quantum-computing initiatives provide longer-term growth potential, though leverage and modest growth remain concerns.

Perpetual Ltd raised its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 41.9% in the 3rd quarter, according to its most recent disclosure with the SEC. The firm owned 15,683 shares of the technology company's stock after purchasing an additional 4,630 shares during the period. Perpetual Ltd's holdings in International Business Machines were worth $3,449,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Friday Financial grew its stake in shares of International Business Machines by 1.9% during the 2nd quarter. Friday Financial now owns 1,903 shares of the technology company's stock valued at $583,000 after acquiring an additional 35 shares during the period. Trinity Wealth Management LLC increased its holdings in International Business Machines by 2.3% in the 2nd quarter. Trinity Wealth Management LLC now owns 1,695 shares of the technology company's stock worth $477,000 after acquiring an additional 38 shares in the last quarter. Pettinga Financial Advisors LLC increased its holdings in International Business Machines by 3.6% in the 2nd quarter. Pettinga Financial Advisors LLC now owns 1,090 shares of the technology company's stock worth $307,000 after acquiring an additional 38 shares in the last quarter. HHM Wealth Advisors LLC raised its stake in 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 acquiring an additional 41 shares during the period. Finally, Basecamp Wealth Advisors LLC raised its stake in 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 acquiring an additional 44 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Royal Bank of Canada reaffirmed its “outperform” rating and set a $270 price target, implying meaningful upside from recent trading levels. The endorsement may support IBM shares by reinforcing the view that the company’s valuation does not fully reflect its cloud, software and AI opportunities. RBC IBM rating report
• Positive Sentiment: IBM and IonQ advanced to Stage C of DARPA’s Quantum Benchmarking Initiative. IBM’s participation strengthens its positioning in quantum computing and could create longer-term commercial and government opportunities, although near-term revenue benefits remain uncertain. DARPA quantum computing stocks article
• Positive Sentiment: Several comparisons frame IBM as an attractive retirement-oriented technology stock because of its established, diversified revenue base and dividend yield of roughly 3%. That income profile may appeal to investors seeking stability despite IBM’s weaker recent market sentiment. Cisco versus IBM retirement stock comparison
• Neutral Sentiment: IBM was highlighted in multiple quantum-computing reports, including coverage of new tools and DARPA’s finalist selections. The developments improve IBM’s strategic narrative, but the sector faces an expected shakeout and the timing of meaningful profits is unclear. Quantum computing stocks and DARPA article
• Negative Sentiment: Truist Securities initiated coverage with a “hold” rating, limiting the impact of more bullish analyst commentary and signaling caution about IBM’s valuation or growth outlook. Truist IBM coverage article
• Negative Sentiment: Comparative analysis notes that IBM’s diversified business comes with substantially more leverage than faster-growing peers, while recent quarterly revenue growth has been modest. Those factors could constrain upside even as the dividend supports the stock. Arista Networks versus IBM comparison

Wall Street Analysts Forecast Growth

IBM has been the subject of a number of recent analyst reports. Daiwa Securities Group dropped their price target on shares of International Business Machines from $247.00 to $217.00 and set a "neutral" rating for the company in a research report on Wednesday, July 29th. Evercore decreased their price objective on shares of International Business Machines from $310.00 to $250.00 and set an "outperform" rating on the stock in a research report on Thursday, July 16th. Wolfe Research downgraded shares of International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd. The Goldman Sachs Group set a $270.00 target price on shares of International Business Machines and gave the company a "buy" rating in a research note on Thursday, July 23rd. Finally, Jefferies Financial Group dropped their target price 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. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $252.96.

International Business Machines Trading Up 1.6%

IBM stock opened at $230.76 on Wednesday. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46. The stock has a market capitalization of $217.41 billion, a price-to-earnings ratio of 20.48, a price-to-earnings-growth ratio of 2.16 and a beta of 0.73. The firm's fifty day simple moving average is $232.22 and its two-hundred day simple moving average is $243.77.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter last year, the business earned $2.80 EPS. The business's revenue was up 1.1% on a year-over-year basis. As a group, analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were paid a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 2.9%. International Business Machines's dividend payout ratio (DPR) is presently 59.98%.

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business's 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 completion of the transaction, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.27% of the stock is currently owned by insiders.

International Business Machines Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM's portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.

Want to see what other hedge funds are holding IBM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for International Business Machines Corporation (NYSE:IBM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.