Minneapolis Portfolio Management Group LLC Trims Stock Position in International Business Machines Corporation $IBM

Key Points

• Minneapolis Portfolio Management Group LLC reduced its IBM stake by 17.5% in the fourth quarter, selling 21,292 shares and leaving it with 100,395 shares valued at about $29.7 million.
• IBM shares were trading up 7.3% at $319.67, near their 52-week high of $327.98, with the company now carrying a market cap of roughly $300.45 billion.
• IBM posted stronger-than-expected quarterly results, beating EPS and revenue estimates, and also raised its quarterly dividend to $1.69 per share, while analysts maintain a Moderate Buy consensus with a $297.50 average price target.

Minneapolis Portfolio Management Group LLC cut its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 17.5% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 100,395 shares of the technology company's stock after selling 21,292 shares during the period. International Business Machines comprises approximately 3.4% of Minneapolis Portfolio Management Group LLC's portfolio, making the stock its 16th largest position. Minneapolis Portfolio Management Group LLC's holdings in International Business Machines were worth $29,738,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. CVA Family Office LLC increased its stake in International Business Machines by 1.4% in the fourth quarter. CVA Family Office LLC now owns 2,389 shares of the technology company's stock valued at $708,000 after purchasing an additional 33 shares during the period. Foster Group Inc. increased its stake in International Business Machines by 1.3% in the fourth quarter. Foster Group Inc. now owns 2,507 shares of the technology company's stock valued at $742,000 after purchasing an additional 33 shares during the period. New Covenant Trust Company N.A. increased its stake in International Business Machines by 3.8% in the fourth quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company's stock valued at $264,000 after purchasing an additional 33 shares during the period. McGowan Group Asset Management Inc. increased its stake in International Business Machines by 1.2% in the fourth quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company's stock valued at $798,000 after purchasing an additional 33 shares during the period. Finally, Marco Investment Management LLC increased its stake in International Business Machines by 0.3% in the third quarter. Marco Investment Management LLC now owns 10,774 shares of the technology company's stock valued at $3,040,000 after purchasing an additional 34 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Trading Up 7.3%

Shares of International Business Machines stock opened at $319.67 on Tuesday. International Business Machines Corporation has a 52-week low of $212.34 and a 52-week high of $327.98. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The company's 50-day simple moving average is $241.55 and its 200-day simple moving average is $270.75. The firm has a market cap of $300.45 billion, a price-to-earnings ratio of 28.26, a price-to-earnings-growth ratio of 3.08 and a beta of 0.58.

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 for the quarter, topping the consensus estimate 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 company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same period in the prior year, the business posted $1.60 earnings per share. The firm's revenue for the quarter was up 9.5% compared to the same quarter last year. As a group, equities research analysts anticipate that International Business Machines Corporation will post 12.4 earnings per share for the current year.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.1%. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. International Business Machines's dividend payout ratio is 59.77%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Royal Bank Of Canada restated an "outperform" rating on shares of International Business Machines in a research note on Thursday. Erste Group Bank lowered shares of International Business Machines from a "buy" rating to a "hold" rating in a research note on Wednesday, February 18th. JPMorgan Chase & Co. dropped their price objective 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. Citigroup assumed coverage on shares of International Business Machines in a research note on Friday, April 10th. They set a "buy" rating and a $285.00 price target on the stock. Finally, Wedbush reiterated an "outperform" rating and set a $320.00 price target on shares of International Business Machines in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $297.50.

International Business Machines News Roundup

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

• Positive Sentiment: IBM stock is getting a boost from Barclays’ new Overweight rating and $350 target, which supports the view that the shares can keep climbing. IBM Stock Surges After Analyst "Overweight" Rating
• Positive Sentiment: IBM is benefiting from a broader software rally after Nvidia CEO Jensen Huang eased fears that AI will undermine software demand, lifting sentiment across the sector. NOW, IBM, software stocks surge as Huang eases AI fears; analysts see more upside
• Positive Sentiment: Investor enthusiasm for IBM’s quantum-computing push is increasing after reports that the company plans to invest more than $10 billion in quantum over the next five years. IBM Bets $10 Billion on Quantum Computing as Race for Next-Generation Technology Intensifies
• Positive Sentiment: Reports that U.S. policy momentum around quantum funding is lifting IBM’s profile as a potential beneficiary in a growing next-generation computing theme. DoC's $2B Quantum Initiative Puts These 2 Stocks in the Spotlight
• Neutral Sentiment: Some market commentary says IBM’s move is also part of a wider tech/AI trade and momentum in software, rather than being driven by a single company-specific catalyst. Did Trump spark an IBM stock rally? It's complicated.
• Neutral Sentiment: Some analysts are warning that IBM may be expensive after the run-up, with one note saying GF Value still sees the stock as overvalued despite strong momentum. International Business Machines Corp (IBM) Stock Up 7.6% but GF Value Says Overvalued -- GF Score: 77/100

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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