NFSG Corp Acquires 3,771 Shares of International Business Machines Corporation $IBM

Key Points

• NFSG Corp increased its IBM holdings by 28.7% in the first quarter, buying 3,771 additional shares and bringing its total position to 16,893 shares valued at about $4.1 million.
• IBM recently warned that second-quarter results missed expectations, with preliminary revenue of about $17.2 billion and adjusted EPS of $2.93 falling short of estimates. CEO Arvind Krishna said delayed deal closures and a shift in customer spending toward AI infrastructure hurt sales.
• Despite the earnings warning, IBM had recently raised its quarterly dividend to $1.69 per share, and analysts still maintain a Moderate Buy consensus with an average price target of $307.17.

NFSG Corp grew its holdings in International Business Machines Corporation (NYSE:IBM - Free Report) by 28.7% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 16,893 shares of the technology company's stock after buying an additional 3,771 shares during the quarter. NFSG Corp's holdings in International Business Machines were worth $4,095,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. 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 acquiring an additional 33 shares during the period. Foster Group Inc. lifted its stake in International Business Machines by 1.3% during the fourth quarter. Foster Group Inc. now owns 2,507 shares of the technology company's stock worth $742,000 after purchasing an additional 33 shares during the period. New Covenant Trust Company N.A. boosted its holdings in International Business Machines by 3.8% during 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 in the last quarter. McGowan Group Asset Management Inc. boosted its holdings in International Business Machines by 1.2% during 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 in the last quarter. Finally, Sandbox Financial Partners LLC grew its stake in shares of International Business Machines by 0.4% in the 4th quarter. Sandbox Financial Partners LLC now owns 8,969 shares of the technology company's stock valued at $2,657,000 after purchasing an additional 34 shares during the period. 58.96% of the stock is owned by institutional investors.

Key Headlines Impacting International Business Machines

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

• Negative Sentiment: IBM reported preliminary Q2 revenue of about $17.2 billion and adjusted EPS of $2.93, both below estimates, raising concerns about near-term growth and execution. Reuters: IBM expects second-quarter revenue below estimates
• Negative Sentiment: CEO Arvind Krishna said the company “faltered,” citing delayed deal closures and customers shifting budgets toward AI infrastructure and memory chips, which hurt software and infrastructure sales. CNBC: IBM warns second-quarter earnings fell short of expectations
• Negative Sentiment: The warning is dragging other software and IT services names lower, reinforcing fears that enterprise spending is moving away from traditional software vendors and toward AI hardware/cybersecurity. Investor's Business Daily: Stock Market Jumps As Inflation Eases; IBM Warns

International Business Machines Stock Down 25.4%

NYSE IBM opened at $216.59 on Wednesday. The stock's 50 day simple moving average is $264.70 and its 200 day simple moving average is $265.20. International Business Machines Corporation has a one year low of $212.34 and a one year high of $332.46. The firm has a market cap of $203.57 billion, a PE ratio of 19.15, a price-to-earnings-growth ratio of 2.80 and a beta of 0.68. 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 issued its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.10. The firm had revenue of $15.92 billion during 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 business's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.60 EPS. As a group, sell-side analysts forecast that International Business Machines Corporation will post 12.45 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were issued a $1.69 dividend. 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 3.1%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on IBM shares. Piper Sandler raised International Business Machines to an "overweight" rating in a report on Tuesday, June 23rd. Needham & Company LLC assumed coverage on International Business Machines in a research report on Wednesday, June 3rd. They issued a "buy" rating on the stock. Wolfe Research lowered International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. raised International Business Machines from a "neutral" rating to an "overweight" rating and lifted their price objective for the company from $270.00 to $291.00 in a report on Tuesday, June 23rd. Finally, Susquehanna initiated coverage on shares of International Business Machines in a research note on Friday, July 10th. They issued a "neutral" rating and a $303.00 target price on the stock. Fourteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $307.17.

About International Business Machines

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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