Meeder Advisory Services Inc. Makes New Investment in International Business Machines Corporation $IBM

Key Points

• Meeder Advisory Services initiated a sizable IBM position, purchasing 24,879 shares worth approximately $7.0 million in the second quarter. Institutional investors collectively own 58.96% of IBM.
• Analysts maintain a consensus “Moderate Buy” rating with a $265.90 price target, despite several firms recently lowering their targets. IBM’s latest quarterly revenue rose 1.1% year over year, while earnings matched estimates at $2.93 per share.
• IBM’s growth outlook is supported by developments in quantum computing, AI and advanced-computing investments, but investors face mixed technical momentum and potential litigation risk from a law-firm investigation into alleged misrepresentations about the company’s business deal pace.

Meeder Advisory Services Inc. purchased a new stake in International Business Machines Corporation (NYSE:IBM - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 24,879 shares of the technology company's stock, valued at approximately $6,996,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Basepoint Wealth LLC bought a new stake in International Business Machines in the fourth quarter valued at $25,000. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines during the 1st quarter worth about $26,000. Harborfront Financial Group LLC acquired a new stake in shares of International Business Machines in the 2nd quarter valued at about $27,000. Cornerstone Financial Management LLC acquired a new stake in shares of International Business Machines in the 4th quarter valued at about $28,000. Finally, SWAN Capital LLC bought a new stake in International Business Machines in the 3rd quarter valued at about $28,000. 58.96% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction 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 transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.27% of the company's stock.

Analysts Set New Price Targets

IBM has been the topic of a number of research reports. HSBC set a $175.00 price target on International Business Machines and gave the stock a "reduce" rating in a research note on Thursday, July 16th. JPMorgan Chase & Co. decreased their price objective on International Business Machines from $291.00 to $250.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Barclays lowered their target price on International Business Machines from $288.00 to $262.00 and set an "overweight" rating on the stock in a research report on Thursday, July 23rd. Royal Bank Of Canada reissued an "outperform" rating and issued a $270.00 price target on shares of International Business Machines in a research report on Tuesday, July 21st. Finally, KeyCorp lowered shares of International Business Machines to a "sector weight" rating in a research note on Tuesday, June 23rd. Sixteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $265.90.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Quantum-computing advances support IBM’s growth narrative. IBM reportedly achieved a 25-fold throughput improvement, reinforcing its position in quantum hardware and software and adding to investor enthusiasm around emerging technology opportunities. Quantum Computing News: IBM Hits 25x Throughput Gain, RGTI Shows Up to 100x Speedup
• Positive Sentiment: Valuation and shareholder returns are attracting buyers. One analysis says IBM may trade below estimates of intrinsic value based on discounted cash flow, earnings and cash-flow multiples. Its long-term return, sizable dividend and reported $1.69-per-share distribution strengthen the income and value case. IBM Stock Could Be Below Fair Value Despite Cautious Broader Checks
• Positive Sentiment: AI and strategic investments broaden IBM’s growth prospects. IBM remains a favored long-term AI stock among retail investors, while IBM Ventures’ investment in physics-acceleration company BQP provides additional exposure to advanced computing. IBM Ventures Backs Physics Acceleration Firm BQP
• Neutral Sentiment: IBM’s latest trading-session advance reflected broader market strength, but the company’s shares remain below both their 50-day and 200-day moving averages, indicating that technical momentum is still mixed. IBM Beats Stock Market Upswing
• Negative Sentiment: A law-firm investigation adds headline and litigation risk. Bleichmar Fonti & Auld announced an investigation into potential misrepresentations concerning IBM’s business deal pace. The inquiry does not establish wrongdoing, but it could pressure the stock if additional claims or weak bookings emerge. IBM Under Investigation for Securities Fraud

International Business Machines Price Performance

IBM stock opened at $234.00 on Friday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The business has a 50-day simple moving average of $242.40 and a two-hundred day simple moving average of $247.21. The company has a market capitalization of $220.46 billion, a P/E ratio of 20.76, a price-to-earnings-growth ratio of 2.21 and a beta of 0.71. 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 issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting the consensus estimate of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the prior year, the business posted $2.80 earnings per share. The company's quarterly revenue was up 1.1% compared to the same quarter last year. Research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's dividend payout ratio is presently 59.98%.

About International Business Machines

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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