Palisade Asset Management LLC Sells 2,223 Shares of International Business Machines Corporation $IBM

Key Points

• Palisade Asset Management cut its IBM position by 2.2%, selling 2,223 shares in the third quarter; it retained 96,627 shares valued at about $21.25 million.
• IBM reported quarterly EPS of $2.95, beating the $2.85 consensus, while revenue of $17.10 billion also exceeded estimates and rose 4.7% year over year.
• IBM declared a quarterly dividend of $1.69 per share, equivalent to a 2.8% annualized yield; analysts’ consensus rating was “Moderate Buy,” with an average price target of $266.88.

Palisade Asset Management LLC lowered its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 2.2% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 96,627 shares of the technology company's stock after selling 2,223 shares during the quarter. International Business Machines comprises 2.0% of Palisade Asset Management LLC's investment portfolio, making the stock its 12th biggest holding. Palisade Asset Management LLC's holdings in International Business Machines were worth $21,251,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Harborfront Financial Group LLC acquired a new position in shares of International Business Machines in the 2nd quarter valued at about $27,000. Hara Capital LLC bought a new stake in shares of International Business Machines during the 2nd quarter valued at about $28,000. Bare Financial Services Inc grew its stake in International Business Machines by 114.6% during the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after purchasing an additional 55 shares during the period. Caitlin John LLC acquired a new stake in International Business Machines during the second quarter worth approximately $35,000. Finally, Osbon Capital Management LLC acquired a new stake in International Business Machines during the second quarter worth approximately $37,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Trading Down 1.0%

IBM opened at $244.71 on Friday. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The firm has a market capitalization of $231.28 billion, a PE ratio of 20.86, a P/E/G ratio of 2.41 and a beta of 0.78. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80. The company's 50-day moving average is $236.76 and its 200 day moving average is $248.64.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.85 by $0.10. The business had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The company's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.65 EPS. As a group, research analysts predict that International Business Machines Corporation will post 12.41 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, November 10th. International Business Machines's dividend payout ratio (DPR) is currently 57.63%.

Key International Business Machines News

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

• Positive Sentiment: Evercore’s sum-of-the-parts analysis values IBM at $290 a share, above its $275 price target, suggesting the firm sees potential value in IBM’s businesses, including quantum computing. IBM Stock Could Be More Than a ‘Safe Haven.' Quantum Computing Is a Big Reason
• Positive Sentiment: IBM’s Quantum System Two is now operational at the University of Chicago, expanding its quantum-computing presence and partnerships in Illinois. The installation strengthens IBM’s research and commercialization ecosystem, though financial returns are likely longer term. IBM Unveils Its Most Advanced Quantum Computer in Chicago
• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform combining quantum and high-performance computing to advance quantum error correction, supporting IBM’s technology roadmap. The initiative targets progress toward a scientifically relevant quantum computer by 2028. Oak Ridge National Laboratory, IBM, and AMD Launch New Co-Design Platform for Quantum Error Correction
• Neutral Sentiment: A recent valuation commentary questions whether IBM’s cash-flow outlook supports the stock’s longer-term share-price gains. The excerpt does not provide a firm valuation conclusion, but it highlights investor scrutiny of the company’s price relative to future cash generation. IBM Stock Could Trade At A Discount After Quantum Computing News

Insider Buying and Selling at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines 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 transaction, the senior vice president owned 47,800 shares of the company's stock, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.27% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of brokerages have weighed in on IBM. Barclays lifted their target price on International Business Machines from $262.00 to $277.00 and gave the stock an "overweight" rating in a report on Thursday, October 22nd. Argus cut their price target on International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a report on Thursday, July 16th. Craig Hallum assumed coverage on shares of International Business Machines in a research report on Wednesday, August 19th. They set a "buy" rating for the company. Truist Financial set a $260.00 price objective on shares of International Business Machines in a research note on Thursday, October 22nd. Finally, Susquehanna set a $275.00 price objective on shares of International Business Machines in a research note on Friday. Nineteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, International Business Machines presently has an average rating of "Moderate Buy" and a consensus price target of $266.88.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers.

IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.

The company traces its roots to the Computing-Tabulating-Recording Company, formed in 1911, and adopted the name International Business Machines in 1924.

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