Legato Capital Management LLC Makes New Investment in International Business Machines Corporation $IBM

Key Points

• Legato Capital Management opened a new position in IBM during the fourth quarter, buying 7,000 shares worth about $2.07 million.
• IBM reported stronger-than-expected quarterly results, posting $1.91 EPS and $15.92 billion in revenue, both above analyst estimates, with revenue up 9.5% year over year.
• The company raised its quarterly dividend to $1.69 per share, bringing the annualized payout to $6.76 and a yield of about 2.7%.

Legato Capital Management LLC bought a new position in International Business Machines Corporation (NYSE:IBM - Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 7,000 shares of the technology company's stock, valued at approximately $2,073,000.

A number of other large investors have also recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in shares of International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock valued at $28,796,390,000 after purchasing an additional 1,439,824 shares during the period. Capital World Investors increased its stake in shares of International Business Machines by 13.9% in the third quarter. Capital World Investors now owns 17,045,156 shares of the technology company's stock valued at $4,809,461,000 after purchasing an additional 2,077,506 shares during the period. Legal & General Group Plc increased its stake in shares of International Business Machines by 2.5% in the third quarter. Legal & General Group Plc now owns 7,302,722 shares of the technology company's stock valued at $2,060,536,000 after purchasing an additional 176,219 shares during the period. Amundi increased its stake in shares of International Business Machines by 17.9% in the third quarter. Amundi now owns 4,777,516 shares of the technology company's stock valued at $1,382,695,000 after purchasing an additional 725,191 shares during the period. Finally, Invesco Ltd. increased its stake in shares of International Business Machines by 2.2% in the third quarter. Invesco Ltd. now owns 3,921,228 shares of the technology company's stock valued at $1,106,414,000 after purchasing an additional 86,123 shares during the period. Institutional investors own 58.96% of the company's stock.

International Business Machines Price Performance

NYSE IBM opened at $253.88 on Friday. International Business Machines Corporation has a 12 month low of $212.34 and a 12 month high of $324.90. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The firm has a market capitalization of $238.62 billion, a PE ratio of 22.45, a P/E/G ratio of 2.63 and a beta of 0.58. The company's 50 day simple moving average is $238.70 and its 200 day simple moving average is $272.44.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same quarter last year, the business earned $1.60 earnings per share. The business's revenue for the quarter was up 9.5% on a year-over-year basis. As a group, equities research analysts forecast that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be given a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.7%. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on IBM. JPMorgan Chase & Co. dropped their price target on shares of International Business Machines from $317.00 to $283.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 18th. HSBC upgraded shares of International Business Machines from a "reduce" rating to a "hold" rating and raised their price target for the company from $218.00 to $231.00 in a research note on Tuesday, April 28th. Morgan Stanley raised their price target on shares of International Business Machines from $215.00 to $225.00 and gave the company an "equal weight" rating in a research note on Thursday, April 23rd. BMO Capital Markets dropped their price target on shares of International Business Machines from $290.00 to $270.00 and set a "market perform" rating on the stock in a research note on Thursday, April 23rd. Finally, DZ Bank upgraded shares of International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective on the stock in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, International Business Machines presently has an average rating of "Moderate Buy" and an average target price of $294.41.

Insider Transactions at International Business Machines

In other International Business Machines news, Director Michael Miebach purchased 434 shares of the firm's stock in a transaction on Wednesday, February 25th. The shares were purchased at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the transaction, the director owned 434 shares in the company, valued at $101,265.22. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.27% of the company's stock.

International Business Machines News Summary

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

• Positive Sentiment: IBM and the U.S. Commerce Department announced a plan to launch America’s first purpose-built quantum foundry, with IBM set to receive the largest share of federal support and contribute matching capital. IBM and U.S. Department of Commerce Announce America's First Purpose-Built Quantum Foundry, Supported by Proposed $1 Billion CHIPS Award
• Positive Sentiment: Analysts and media reports say the quantum funding package is a major new catalyst for IBM, helping drive strong share-price momentum and lifting sentiment around the stock’s long-term growth prospects. IBM shares extend rally as Wedbush calls US quantum investment a "new catalyst"
• Positive Sentiment: IBM’s push into quantum computing and related hot tech segments is being viewed as evidence the company is expanding beyond legacy businesses into higher-growth opportunities. Why IBM Stock Was Rocking it This Week
• Neutral Sentiment: Some coverage highlights that IBM’s valuation, debt load, and execution risk will matter as the company commits capital to the quantum foundry project. IBM’s US$1b Anderon Quantum Foundry Puts Valuation And Debt In Focus

International Business Machines Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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