Morningstar Investment Management LLC Purchases New Stake in International Business Machines Corporation $IBM

Key Points

• Morningstar Investment Management has acquired a new stake in International Business Machines Corporation (IBM), purchasing 1,061 shares valued at approximately $313,000 in the second quarter.
• IBM reported a net margin of 9.11% and a year-over-year revenue increase of 7.7% for the last quarter, surpassing analysts' expectations with an earnings per share of $2.80.
• The company declared a quarterly dividend of $1.68 per share, representing an annualized yield of 2.4%, although its dividend payout ratio stands at a high 109.09%.

Morningstar Investment Management LLC purchased a new stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 1,061 shares of the technology company's stock, valued at approximately $313,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Family CFO Inc purchased a new position in International Business Machines during the 2nd quarter valued at $25,000. Christopher J. Hasenberg Inc purchased a new position in International Business Machines during the 1st quarter valued at $27,000. SSA Swiss Advisors AG purchased a new position in International Business Machines during the 1st quarter valued at $28,000. Dagco Inc. purchased a new position in International Business Machines during the 1st quarter valued at $31,000. Finally, Silicon Valley Capital Partners increased its position in International Business Machines by 322.6% during the 1st quarter. Silicon Valley Capital Partners now owns 131 shares of the technology company's stock valued at $32,000 after purchasing an additional 100 shares during the period. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Stock Performance

Shares of International Business Machines stock opened at $276.12 on Wednesday. The stock has a market cap of $256.63 billion, a price-to-earnings ratio of 44.83, a PEG ratio of 4.27 and a beta of 0.73. The firm's 50-day moving average is $259.20 and its 200 day moving average is $261.11. International Business Machines Corporation has a 1 year low of $203.51 and a 1 year high of $301.04. The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.65 by $0.15. The company had revenue of $16.98 billion for the quarter, compared to analysts' expectations of $16.58 billion. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. International Business Machines's revenue was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.43 EPS. International Business Machines has set its FY 2025 guidance at EPS. Sell-side analysts anticipate that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were paid a dividend of $1.68 per share. The ex-dividend date was Friday, August 8th. This represents a $6.72 annualized dividend and a yield of 2.4%. International Business Machines's dividend payout ratio is currently 109.09%.

Analysts Set New Price Targets

A number of research analysts have issued reports on IBM shares. JPMorgan Chase & Co. boosted their price objective on shares of International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Erste Group Bank downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. Sanford C. Bernstein started coverage on shares of International Business Machines in a research report on Monday, September 15th. They issued a "market perform" rating and a $280.00 target price on the stock. Bank of America reduced their target price on shares of International Business Machines from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Thursday, July 24th. Finally, Stifel Nicolaus upped their target price on shares of International Business Machines from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $284.62.

International Business Machines Company Profile

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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