Resona Asset Management Co. Ltd. Cuts Position in International Business Machines Corporation $IBM

Key Points

• Resona Asset Management trimmed its IBM stake by 3.7% in the fourth quarter, selling 12,002 shares and leaving it with 316,106 shares valued at about $94.2 million.
• IBM's latest earnings beat expectations, reporting $1.91 EPS on $15.92 billion in revenue, while revenue rose 9.5% year over year.
• The company also raised its quarterly dividend to $1.69 per share, implying a 3.0% yield, and analysts currently rate the stock a Moderate Buy with a consensus target of $294.41.

Resona Asset Management Co. Ltd. decreased its holdings in International Business Machines Corporation (NYSE:IBM - Free Report) by 3.7% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 316,106 shares of the technology company's stock after selling 12,002 shares during the period. Resona Asset Management Co. Ltd.'s holdings in International Business Machines were worth $94,203,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also modified their holdings of IBM. Capital World Investors grew its stake in shares of International Business Machines by 13.9% in the third quarter. Capital World Investors now owns 17,045,156 shares of the technology company's stock worth $4,809,461,000 after acquiring an additional 2,077,506 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock worth $28,796,390,000 after acquiring an additional 1,439,824 shares in the last quarter. First Trust Advisors LP grew its stake in shares of International Business Machines by 39.6% in the third quarter. First Trust Advisors LP now owns 3,052,880 shares of the technology company's stock worth $861,401,000 after acquiring an additional 865,253 shares in the last quarter. Franklin Resources Inc. grew its stake in shares of International Business Machines by 64.7% in the third quarter. Franklin Resources Inc. now owns 2,162,741 shares of the technology company's stock worth $610,239,000 after acquiring an additional 849,500 shares in the last quarter. Finally, Amundi grew its stake in shares of International Business Machines by 17.9% in the third quarter. Amundi now owns 4,777,516 shares of the technology company's stock worth $1,382,695,000 after acquiring an additional 725,191 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

Insiders Place Their Bets

In related news, Director Michael Miebach purchased 434 shares of International Business Machines stock in a transaction that occurred on Wednesday, February 25th. The stock was purchased at an average cost of $233.33 per share, with a total value of $101,265.22. Following the completion of the transaction, the director directly owned 434 shares in the company, valued at approximately $101,265.22. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.27% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on IBM shares. UBS Group upgraded shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target for the company in a research note on Wednesday, February 25th. Wedbush reiterated an "outperform" rating and set a $320.00 target price on shares of International Business Machines in a research note on Wednesday, May 6th. Citigroup initiated coverage on shares of International Business Machines in a research note on Friday, April 10th. They set a "buy" rating and a $285.00 target price for the company. BMO Capital Markets lowered their target price on shares of International Business Machines from $290.00 to $270.00 and set a "market perform" rating for the company in a research note on Thursday, April 23rd. Finally, Erste Group Bank downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a research note on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $294.41.

International Business Machines Stock Performance

Shares of IBM stock opened at $222.84 on Tuesday. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The firm has a fifty day moving average price of $239.81 and a 200 day moving average price of $274.15. The company has a market cap of $209.45 billion, a P/E ratio of 19.70, a PEG ratio of 2.27 and a beta of 0.58. International Business Machines Corporation has a 12 month low of $212.34 and a 12 month high of $324.90.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts' consensus estimates 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 net margin of 15.61% and a return on equity of 37.23%. The company's revenue was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.60 earnings per share. Sell-side analysts predict that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be given a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 3.0%. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. International Business Machines's dividend payout ratio is presently 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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