Meeder Asset Management Inc. Takes Position in International Business Machines Corporation $IBM

Key Points

• Meeder Asset Management acquired 19,520 IBM shares during the second quarter, valued at approximately $5.49 million. Several other institutional investors also initiated positions, with institutions collectively owning 58.96% of IBM.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $265.90, despite several firms recently lowering their targets.
• IBM’s latest quarterly results matched expectations at $2.93 earnings per share, while revenue rose 1.1% year over year to $17.16 billion. The company also announced a quarterly dividend of $1.69 per share, representing a 2.9% annualized yield.

Meeder Asset Management Inc. acquired a new stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 19,520 shares of the technology company's stock, valued at approximately $5,489,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. Tiemann Investment Advisors LLC purchased a new stake in International Business Machines during the 2nd quarter worth approximately $451,000. Citizens Financial Group Inc. RI bought a new position in shares of International Business Machines in the 2nd quarter worth about $16,093,000. Texas Capital Bank Wealth Management Services Inc acquired a new position in International Business Machines in the second quarter valued at approximately $566,000. Tortoise Investment Management LLC acquired a new position in International Business Machines during the 2nd quarter valued at approximately $717,000. Finally, Pavion Blue Capital LLC acquired a new position in shares of International Business Machines during the second quarter valued at $2,432,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Royal Bank Of Canada reiterated an "outperform" rating and set a $270.00 price objective on shares of International Business Machines in a research report on Tuesday, July 21st. Susquehanna lifted their price objective on shares of International Business Machines from $225.00 to $235.00 and gave the stock a "neutral" rating in a research note on Monday. Stifel Nicolaus cut their target price on International Business Machines from $290.00 to $235.00 and set a "buy" rating on the stock in a research report on Monday, July 20th. Citigroup cut their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Finally, BMO Capital Markets reduced their price objective on International Business Machines from $270.00 to $230.00 and set a "market perform" rating for the company in a research note on Thursday, July 23rd. Sixteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $265.90.

International Business Machines Price Performance

Shares of NYSE:IBM opened at $234.00 on Friday. The business has a 50-day moving average of $242.40 and a two-hundred day moving average of $247.21. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The stock has a market capitalization of $220.46 billion, a P/E ratio of 20.76, a P/E/G ratio of 2.21 and a beta of 0.71.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting 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 company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter last year, the company posted $2.80 earnings per share. The company's revenue for the quarter was up 1.1% compared to the same quarter last year. On average, equities research analysts predict that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines's dividend payout ratio (DPR) is 59.98%.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.27% of the company's stock.

Key International Business Machines News

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 Company 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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