Rakuten Investment Management Inc. Buys 15,334 Shares of International Business Machines Corporation $IBM

Key Points

• Rakuten Investment Management increased its IBM stake by 10% in the third quarter, adding 15,334 shares to hold 168,956 shares valued at about $37.2 million.
• IBM beat quarterly estimates, reporting adjusted earnings of $2.95 per share versus $2.85 expected and revenue of $17.10 billion, up 4.7% year over year. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $266.12.
• IBM declared a quarterly dividend of $1.69 per share, equivalent to $6.76 annually and a 2.7% yield.

Rakuten Investment Management Inc. increased its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 10.0% in the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 168,956 shares of the technology company's stock after buying an additional 15,334 shares during the period. Rakuten Investment Management Inc.'s holdings in International Business Machines were worth $37,169,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in IBM. Provenance Wealth Advisors LLC raised its stake in shares of International Business Machines by 56.5% in the third quarter. Provenance Wealth Advisors LLC now owns 7,493 shares of the technology company's stock valued at $1,648,000 after buying an additional 2,705 shares during the period. Hughes Financial Services LLC grew its stake in shares of International Business Machines by 19.6% during the 3rd quarter. Hughes Financial Services LLC now owns 720 shares of the technology company's stock worth $158,000 after acquiring an additional 118 shares during the period. Associated Banc Corp bought a new position in shares of International Business Machines during the 3rd quarter worth $4,053,000. Guardian Wealth Advisors LLC increased its holdings in International Business Machines by 16.3% in the 3rd quarter. Guardian Wealth Advisors LLC now owns 1,613 shares of the technology company's stock worth $355,000 after acquiring an additional 226 shares during the last quarter. Finally, Integrity Alliance LLC. increased its holdings in International Business Machines by 0.5% in the 3rd quarter. Integrity Alliance LLC. now owns 18,045 shares of the technology company's stock worth $3,969,000 after acquiring an additional 97 shares during the last quarter. Institutional investors own 58.96% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on IBM shares. Wall Street Zen upgraded International Business Machines from a "sell" rating to a "hold" rating in a research note on Saturday, October 24th. HSBC cut their target price on shares of International Business Machines from $175.00 to $174.00 in a research report on Friday, July 24th. Evercore reduced their target price on shares of International Business Machines from $310.00 to $250.00 and set an "outperform" rating for the company in a research note on Thursday, July 16th. Citigroup lifted their price objective on shares of International Business Machines from $245.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday, October 22nd. Finally, Robert W. Baird boosted their target price on shares of International Business Machines from $230.00 to $260.00 and gave the company a "neutral" rating in a report on Thursday, October 22nd. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, International Business Machines has a consensus rating of "Moderate Buy" and an average price target of $266.12.

Insider Activity at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.27% of the stock is owned by company insiders.

International Business Machines Price Performance

IBM stock opened at $249.83 on Wednesday. The firm has a 50 day moving average of $235.88 and a 200-day moving average of $249.39. The company has a current ratio of 0.85, a quick ratio of 0.80 and a debt-to-equity ratio of 1.57. International Business Machines Corporation has a 12 month low of $199.19 and a 12 month high of $332.46. The firm has a market capitalization of $236.12 billion, a P/E ratio of 21.30, a price-to-earnings-growth ratio of 2.49 and a beta of 0.78.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, beating the consensus estimate of $2.85 by $0.10. The company had revenue of $17.10 billion during the quarter, compared to analysts' expectations of $16.82 billion. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. International Business Machines's revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.65 earnings per share. As a group, sell-side 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 company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines's dividend payout ratio (DPR) is presently 57.63%.

International Business Machines Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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