International Business Machines Corporation $IBM Stock Purchased by Cardinal Capital Management

Key Points

• Cardinal Capital Management increased its IBM position by 5.9% in the third quarter, purchasing 2,646 additional shares to own 47,340 shares valued at approximately $10.4 million.
• Other institutional investors also expanded their IBM holdings, with hedge funds and institutional investors collectively owning 58.96% of the company. However, IBM senior vice president Robert Thomas sold 25,000 shares worth about $5.8 million.
• IBM’s latest quarterly results exceeded expectations, with earnings of $2.95 per share and revenue of $17.1 billion; analysts maintain a “Moderate Buy” consensus rating with an average price target of $255.76.

Cardinal Capital Management increased its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 5.9% during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 47,340 shares of the technology company's stock after buying an additional 2,646 shares during the quarter. International Business Machines comprises 1.2% of Cardinal Capital Management's investment portfolio, making the stock its 24th biggest holding. Cardinal Capital Management's holdings in International Business Machines were worth $10,411,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Cardinal Point Capital Management ULC boosted its stake in International Business Machines by 8.7% during the 3rd quarter. Cardinal Point Capital Management ULC now owns 42,431 shares of the technology company's stock worth $9,332,000 after purchasing an additional 3,398 shares during the period. Foster Victor Wealth Advisors LLC increased its stake in International Business Machines by 4.1% in the third quarter. Foster Victor Wealth Advisors LLC now owns 71,542 shares of the technology company's stock valued at $16,912,000 after purchasing an additional 2,847 shares during the period. Vest Financial LLC increased its stake in International Business Machines by 33.0% in the third quarter. Vest Financial LLC now owns 474,969 shares of the technology company's stock valued at $104,460,000 after purchasing an additional 117,873 shares during the period. Cantor Fitzgerald Investment Advisors L.P. increased its stake in International Business Machines by 93.1% in the third quarter. Cantor Fitzgerald Investment Advisors L.P. now owns 80,802 shares of the technology company's stock valued at $17,771,000 after purchasing an additional 38,962 shares during the period. Finally, Massachusetts Wealth Management raised its holdings in shares of International Business Machines by 9.2% in the third quarter. Massachusetts Wealth Management now owns 5,733 shares of the technology company's stock valued at $1,261,000 after buying an additional 485 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

Insider Activity at International Business Machines

In other 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 completion of the sale, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.27% of the company's stock.

International Business Machines Price Performance

Shares of NYSE IBM opened at $250.67 on Thursday. The stock has a fifty day moving average price of $232.36 and a 200 day moving average price of $243.60. 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 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The company has a market cap of $236.16 billion, a PE ratio of 22.24, a P/E/G ratio of 2.32 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data 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. The company 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 15.52% and a return on equity of 35.65%. International Business Machines's revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the company posted $2.65 EPS. Sell-side analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current year.

Trending Headlines about International Business Machines

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.

Analyst Ratings Changes

Several brokerages have recently weighed in on IBM. Argus decreased their target price on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a research note on Thursday, July 16th. HSBC lowered their price target on International Business Machines from $175.00 to $174.00 in a report on Friday, July 24th. Evercore dropped their price target on 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. Bank of America dropped their price target on International Business Machines from $330.00 to $280.00 and set a "buy" rating on the stock in a research report on Wednesday, July 15th. Finally, Robert W. Baird began coverage on International Business Machines in a research note on Tuesday, July 21st. They set a "neutral" rating and a $230.00 price objective for the company. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $255.76.

About International Business Machines

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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