Mystic Asset Management Inc. Makes New $5.62 Million Investment in International Business Machines Corporation $IBM

Key Points

• Mystic Asset Management initiated a $5.62 million IBM position by purchasing 19,968 shares during the second quarter, making IBM 1.2% of its portfolio. Institutional investors collectively own 58.96% of IBM.
• IBM’s latest quarterly results met earnings expectations at $2.93 per share, while revenue of $17.16 billion fell short of estimates but increased 1.1% year over year.
• IBM declared a quarterly dividend of $1.69, equivalent to an annualized $6.76 payout and a 2.9% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $265.90.

Mystic Asset Management Inc. bought a new position in International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 19,968 shares of the technology company's stock, valued at approximately $5,615,000. International Business Machines comprises about 1.2% of Mystic Asset Management Inc.'s portfolio, making the stock its 18th biggest position.

Several other hedge funds have also modified their holdings of the stock. Brighton Jones LLC lifted its position in shares of International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after acquiring an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC grew its position in International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after purchasing an additional 186 shares in the last quarter. Jump Financial LLC purchased a new position in International Business Machines during the 2nd quarter worth approximately $211,000. Ieq Capital LLC raised its stake in International Business Machines by 2.2% during the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after purchasing an additional 843 shares during the period. Finally, Vivaldi Capital Management LP lifted its holdings in shares of International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after purchasing an additional 106 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Trading Up 0.1%

Shares of NYSE:IBM opened at $234.87 on Friday. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The stock has a market capitalization of $221.28 billion, a PE ratio of 20.84, a P/E/G ratio of 2.24 and a beta of 0.71. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46. The firm has a fifty day moving average price of $241.67 and a 200 day moving average price of $247.13.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting the consensus estimate of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business's revenue was up 1.1% compared to the same quarter last year. During the same period last year, the company earned $2.80 earnings per share. Analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

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

Insiders Place Their Bets

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

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on IBM. Roth Capital reiterated a "buy" rating on shares of International Business Machines in a report on Wednesday, June 3rd. Robert W. Baird initiated coverage on International Business Machines in a research note on Tuesday, July 21st. They issued a "neutral" rating and a $230.00 price objective for the company. Bank of America raised their price objective on International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a research report on Monday, July 6th. Susquehanna lifted their target price on International Business Machines from $225.00 to $235.00 and gave the company a "neutral" rating in a research note on Monday, August 31st. Finally, Citigroup dropped their target price on International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $265.90.

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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