International Business Machines Corporation $IBM Stock Sold by Gratus Wealth Advisors LLC

Key Points

• Gratus Wealth Advisors cut its IBM position by 48.3% in the third quarter, selling 3,230 shares and retaining 3,458 shares valued at approximately $761,000. Institutional investors and hedge funds collectively own 58.96% of IBM.
• IBM exceeded quarterly expectations, reporting $2.95 in earnings per share and $17.10 billion in revenue, with revenue up 4.7% year over year. The company also declared a quarterly dividend of $1.69 per share, equivalent to a 2.7% yield.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $266.12, though some commentary warns that IBM’s valuation may already reflect much of its growth potential.

Gratus Wealth Advisors LLC trimmed its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 48.3% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,458 shares of the technology company's stock after selling 3,230 shares during the quarter. Gratus Wealth Advisors LLC's holdings in International Business Machines were worth $761,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the company. Verdence Capital Advisors LLC raised its position in shares of International Business Machines by 1.4% in the third quarter. Verdence Capital Advisors LLC now owns 23,007 shares of the technology company's stock worth $5,060,000 after acquiring an additional 317 shares during the period. Flagship Harbor Advisors LLC grew its position in shares of International Business Machines by 4.3% during the 3rd quarter. Flagship Harbor Advisors LLC now owns 13,785 shares of the technology company's stock valued at $3,032,000 after acquiring an additional 571 shares during the period. Patton Albertson Miller Group LLC grew its position in shares of International Business Machines by 0.7% during the 3rd quarter. Patton Albertson Miller Group LLC now owns 23,537 shares of the technology company's stock valued at $5,176,000 after acquiring an additional 155 shares during the period. Plimoth Trust Co. LLC increased its stake in shares of International Business Machines by 2.9% in the 3rd quarter. Plimoth Trust Co. LLC now owns 12,659 shares of the technology company's stock valued at $2,784,000 after purchasing an additional 360 shares in the last quarter. Finally, Westover Capital Advisors LLC purchased a new position in shares of International Business Machines in the 3rd quarter valued at about $310,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Stock Down 0.2%

Shares of NYSE IBM opened at $253.04 on Tuesday. The firm has a market cap of $239.15 billion, a price-to-earnings ratio of 20.60, a price-to-earnings-growth ratio of 2.50 and a beta of 0.73. The company's 50-day simple moving average is $233.06 and its 200-day simple moving average is $251.16. The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 1.57. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week 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 the consensus estimate 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 firm had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. During the same quarter in the prior year, the firm earned $2.65 EPS. The company's revenue for the quarter was up 4.7% on a year-over-year basis. Equities analysts predict that International Business Machines Corporation will post 12.41 EPS for the current fiscal year.

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.7%. The ex-dividend date is Tuesday, November 10th. International Business Machines's payout ratio is presently 57.63%.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s software segment and hybrid-cloud and enterprise AI consulting businesses remain the company’s main growth engines, supporting the case that its multiyear transformation is generating more durable cash flow. IBM Fixed Its Plumbing; Intel Became Big Tech's Real Structural Trap
• Positive Sentiment: Quantum computing is being highlighted as a potential long-term catalyst. Progress in the technology could create a significant new growth opportunity beyond IBM’s existing cloud and consulting operations, although commercialization remains ahead. IBM Continues to Plug Along, but Its Quantum Computing Bet Could Be the Real Catalyst
• Positive Sentiment: CEO Arvind Krishna’s view that open-weight AI models deliver performance close to frontier models at substantially lower cost could encourage broader enterprise AI adoption, potentially benefiting IBM’s consulting and implementation services. IBM CEO Says Open AI Models Are 90% as Good as Frontier Models
• Neutral Sentiment: IBM is attracting increased investor attention, while analysts continue to assess its earnings outlook and competitive position relative to Salesforce and other technology companies. IBM Is Attracting Investor Attention
• Negative Sentiment: Valuation is a concern: commentary questions whether IBM is already priced above its fundamentals and whether investors are paying too much relative to rivals. That could limit near-term upside, particularly because quantum computing is a longer-term opportunity rather than an immediate earnings driver. Are You Overpaying For IBM Stock Versus Its Rivals?

Analyst Upgrades and Downgrades

IBM has been the subject of a number of analyst reports. UBS Group upped their price target on International Business Machines from $236.00 to $243.00 and gave the stock a "neutral" rating in a report on Thursday. Jefferies Financial Group raised their price objective on International Business Machines from $270.00 to $280.00 and gave the company a "buy" rating in a report on Thursday. Craig Hallum started coverage on International Business Machines in a report on Wednesday, August 19th. They issued a "buy" rating on the stock. Susquehanna boosted their price objective on International Business Machines from $235.00 to $256.00 and gave the company a "neutral" rating in a research report on Wednesday, October 21st. Finally, Morgan Stanley upped their target price on International Business Machines from $238.00 to $240.00 and gave the stock an "equal weight" rating in a research note on Thursday. Twenty equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, International Business Machines has an average rating of "Moderate Buy" and a consensus target price of $266.12.

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

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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