National Pension Service Has $671.70 Million Stock Position in International Business Machines Corporation $IBM

Key Points

• National Pension Service increased its IBM stake by 1.2% in the fourth quarter, ending with 2,267,663 shares worth about $671.7 million.
• IBM has drawn a mixed but generally positive analyst outlook, with a Moderate Buy consensus and an average price target of $294.41.
• The company is making major strategic bets on future growth, including a $10 billion quantum computing investment and a $5 billion commitment to improve open-source software security through Project Lightwell.

National Pension Service raised its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 1.2% in the fourth quarter, according to its most recent filing with the SEC. The firm owned 2,267,663 shares of the technology company's stock after purchasing an additional 26,550 shares during the quarter. National Pension Service owned approximately 0.24% of International Business Machines worth $671,704,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in the company. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new position in International Business Machines during the fourth quarter worth $288,000. Basepoint Wealth LLC bought a new stake in International Business Machines during the fourth quarter valued at $25,000. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund bought a new stake in International Business Machines during the fourth quarter valued at $10,039,000. Northwestern Mutual Wealth Management Co. grew its holdings in International Business Machines by 2.9% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 116,619 shares of the technology company's stock worth $34,544,000 after acquiring an additional 3,251 shares during the period. Finally, Houlihan Financial Resource Group Ltd. grew its holdings in International Business Machines by 166.2% during the 4th quarter. Houlihan Financial Resource Group Ltd. now owns 3,399 shares of the technology company's stock worth $1,021,000 after acquiring an additional 2,122 shares during the period. Institutional investors own 58.96% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on IBM. Stifel Nicolaus set a $290.00 price objective on International Business Machines in a research note on Friday, May 22nd. HSBC raised International Business Machines from a "reduce" rating to a "hold" rating and raised their target price for the stock from $218.00 to $231.00 in a research note on Tuesday, April 28th. UBS Group raised International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target on the stock in a research note on Wednesday, February 25th. Jefferies Financial Group cut their price target on International Business Machines from $370.00 to $320.00 and set a "buy" rating on the stock in a report on Monday, April 20th. Finally, Wedbush reaffirmed an "outperform" rating on shares of International Business Machines in a research report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, International Business Machines presently has a consensus rating of "Moderate Buy" and an average target price of $294.41.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM announced it will invest more than $10 billion in quantum computing over the next five years, aiming to build a large-scale, error-corrected quantum computer by 2029. Investors appear to be betting this could strengthen IBM’s position in a high-growth, strategically important technology area. IBM to invest $10 billion for large-scale quantum computer by 2029
• Positive Sentiment: The company also committed $5 billion to Project Lightwell, a Red Hat-backed initiative to improve open-source software security with AI tools and more than 20,000 engineers. That push could expand IBM’s cybersecurity and enterprise software footprint while creating a new revenue opportunity. IBM commits $5 billion to secure open-source software
• Positive Sentiment: Commentary from analysts and media outlets says the spending plans may help “future-proof” IBM by positioning it more aggressively in AI, quantum computing, and cybersecurity, which has added to bullish sentiment around the stock. IBM shares rise after unveiling $15B cybersecurity and quantum investment plan
• Neutral Sentiment: IBM also reported a legal development involving older former HR workers’ age discrimination claims, but this appears less likely to move the stock materially than the strategic investment announcements. IBM Ditches Laid-Off Older HR Workers’ Age Discrimination Claims

International Business Machines Stock Performance

Shares of IBM opened at $264.25 on Friday. International Business Machines Corporation has a one year low of $212.34 and a one year high of $324.90. The company has a market cap of $248.36 billion, a PE ratio of 23.36, a P/E/G ratio of 2.64 and a beta of 0.58. The stock has a 50-day moving average of $239.22 and a 200-day moving average of $270.79. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm's revenue for the quarter was up 9.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.60 EPS. On average, equities research analysts predict that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Friday, May 8th. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.6%. International Business Machines's payout ratio is currently 59.77%.

International Business Machines 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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