LSV Asset Management Decreases Position in International Business Machines Corporation $IBM

Key Points

• LSV Asset Management sharply reduced its IBM stake by 90.2% in the fourth quarter, selling more than 201,000 shares and leaving it with 21,980 shares worth about $6.5 million.
• IBM reported stronger-than-expected quarterly results, with EPS of $1.91 versus $1.81 expected and revenue of $15.92 billion, 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 the dividend yield to 2.7%.

LSV Asset Management cut its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 90.2% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 21,980 shares of the technology company's stock after selling 201,390 shares during the period. LSV Asset Management's holdings in International Business Machines were worth $6,511,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in IBM. VIRGINIA RETIREMENT SYSTEMS ET Al grew its stake in shares of International Business Machines by 424.6% during the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company's stock valued at $77,234,000 after buying an additional 211,040 shares during the last quarter. GLOBALT Investments LLC GA grew its stake in shares of International Business Machines by 19.1% during the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company's stock valued at $5,417,000 after buying an additional 2,930 shares during the last quarter. Waverton Investment Management Ltd grew its stake in shares of International Business Machines by 3.3% during the third quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company's stock valued at $280,439,000 after buying an additional 32,072 shares during the last quarter. Newbridge Financial Services Group Inc. grew its stake in International Business Machines by 30.0% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company's stock worth $3,887,000 after acquiring an additional 3,029 shares in the last quarter. Finally, NEOS Investment Management LLC grew its stake in International Business Machines by 51.7% in the 3rd quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company's stock worth $32,278,000 after acquiring an additional 38,973 shares in the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Trading Down 0.8%

Shares of NYSE:IBM opened at $251.69 on Wednesday. The firm has a market capitalization of $236.56 billion, a P/E ratio of 22.25, a P/E/G ratio of 2.63 and a beta of 0.58. 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 business's 50-day moving average is $238.94 and its 200 day moving average is $271.49. International Business Machines Corporation has a 1 year low of $212.34 and a 1 year high of $324.90.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The company had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm's quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter last year, the business posted $1.60 EPS. On average, research analysts predict that International Business Machines Corporation will post 12.4 earnings per share 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. Investors of record on Friday, May 8th will be paid a $1.69 dividend. The ex-dividend date is Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. This is a boost from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM is being seen as a key beneficiary of the U.S. government’s quantum computing funding plan, which has boosted enthusiasm for its quantum ambitions and may provide additional support for the stock. Article Title
• Positive Sentiment: IBM signed a five-year global technology modernization agreement with Abertis, a new enterprise deal that could add to consulting revenue and reinforce IBM’s role in digital transformation projects. Article Title
• Neutral Sentiment: Commentary from analysts and media outlets suggests IBM’s quantum business is helping investor sentiment, but the near-term move is also tied to broader excitement across quantum stocks and ETFs rather than IBM-specific earnings changes. Article Title
• Negative Sentiment: Some recent coverage notes IBM has struggled over the past year and remains under pressure versus its longer-term trend, which may temper investor enthusiasm despite the latest positive headlines. Article Title

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on IBM. Erste Group Bank lowered International Business Machines from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. Weiss Ratings lowered International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, May 21st. Wedbush reiterated an "outperform" rating on shares of International Business Machines in a report on Thursday, May 21st. Royal Bank Of Canada lowered their price target on International Business Machines from $330.00 to $300.00 and set an "outperform" rating for the company in a report on Wednesday, May 6th. Finally, Citigroup began coverage on International Business Machines in a report on Friday, April 10th. They issued a "buy" rating and a $285.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $294.41.

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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