International Business Machines Corporation $IBM Stock: Royal Fund Management LLC Grows Position

Key Points

• Royal Fund Management increased its IBM position by 6.5% in the third quarter, bringing its holdings to 47,407 shares valued at approximately $10.4 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly revenue of $17.1 billion and earnings of $2.95 per share, beating analyst expectations, while revenue rose 4.7% year over year. The company also declared a quarterly dividend of $1.69 per share, representing a 2.7% yield.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $266.12, although targets and ratings varied. Separately, IBM senior vice president Robert Thomas sold 25,000 shares, reducing his ownership by 34.34%.

Royal Fund Management LLC grew its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 6.5% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 47,407 shares of the technology company's stock after purchasing an additional 2,897 shares during the period. Royal Fund Management LLC's holdings in International Business Machines were worth $10,426,000 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of IBM. Portus Wealth Advisors LLC purchased a new position in International Business Machines in the first quarter valued at approximately $26,000. Harborfront Financial Group LLC acquired a new position in International Business Machines during the second quarter valued at approximately $27,000. Hara Capital LLC acquired a new position in International Business Machines during the second quarter valued at approximately $28,000. Bare Financial Services Inc grew its stake in International Business Machines by 114.6% during the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after buying an additional 55 shares during the period. Finally, Caitlin John LLC purchased a new stake in International Business Machines during the second quarter worth approximately $35,000. 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 business's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares of the company's stock, valued at approximately $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.27% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on IBM. Stifel Nicolaus increased their price objective on shares of International Business Machines from $235.00 to $260.00 and gave the stock a "buy" rating in a research report on Thursday. Evercore cut their target price on shares of International Business Machines from $310.00 to $250.00 and set an "outperform" rating on the stock in a research note on Thursday, July 16th. Citic Securities lifted their target price on shares of International Business Machines from $294.00 to $297.00 and gave the company a "buy" rating in a report on Wednesday, July 29th. Wall Street Zen cut shares of International Business Machines from a "hold" rating to a "sell" rating in a research report on Saturday, September 12th. Finally, Morgan Stanley increased their price target on International Business Machines from $238.00 to $240.00 and gave the company an "equal weight" rating in a report on Thursday. Twenty analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $266.12.

International Business Machines Stock Performance

International Business Machines stock opened at $252.42 on Friday. The stock's 50 day moving average price is $232.68 and its 200 day moving average price is $243.63. The firm has a market capitalization of $237.81 billion, a PE ratio of 22.40, a price-to-earnings-growth ratio of 2.42 and a beta of 0.73. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. International Business Machines Corporation has a one year low of $199.19 and a one year high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping analysts' consensus estimates of $2.85 by $0.10. International Business Machines had a return on equity of 35.08% and a net margin of 15.99%. The firm had revenue of $17.10 billion during the quarter, compared to analysts' expectations of $16.82 billion. During the same quarter in the prior year, the business earned $2.65 EPS. International Business Machines's quarterly revenue was up 4.7% compared to the same quarter last year. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines's payout ratio is presently 59.98%.

Key International Business Machines News

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

• Positive Sentiment: IBM delivered a strong third quarter. Revenue increased 4.7% year over year to $17.1 billion, while adjusted earnings of $2.95 per share exceeded expectations near $2.85. Software revenue rose 8% to $7.8 billion, Infrastructure revenue increased 4%, and delayed contracts returned. Reuters IBM earnings article
• Positive Sentiment: Cash generation and margins improved. IBM reported approximately $3.0 billion in free cash flow for the quarter and raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year. The board also declared a quarterly dividend of $1.69 per share. IBM Q3 revenue and cash flow article
• Positive Sentiment: Analysts raised targets after the report. JPMorgan lifted its target to $269, Stifel raised its target to $260 and RBC set a $270 target while reaffirming an outperform rating, signaling confidence that software, Red Hat and infrastructure demand can support further gains.
• Neutral Sentiment: Investors are looking for proof that the rebound can continue. Management said second-quarter softness reflected timing rather than weak demand, but the market remains focused on whether software growth—partly helped by the Confluent acquisition—and Red Hat momentum will persist in the fourth quarter. Fool IBM earnings analysis
• Negative Sentiment: Guidance and AI commentary weighed on sentiment. IBM maintained its full-year revenue-growth outlook rather than raising it, and CEO Arvind Krishna said lower-cost open AI models can deliver much of the performance of frontier models. Investors interpreted that view as a potential constraint on premium AI spending and IBM’s longer-term growth opportunity. Reuters IBM stock reaction article
• Negative Sentiment: Valuation remains a concern. Commentary from Seeking Alpha and Zacks characterized IBM as a high-margin company with comparatively modest growth, consulting challenges, meaningful debt and a premium valuation. That combination limits the margin for execution mistakes and helps explain why the stock has not sustained its post-earnings advance. Seeking Alpha IBM valuation article

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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