Sumitomo Life Insurance Co. Makes New Investment in International Business Machines Corporation $IBM

Key Points

• Sumitomo Life Insurance acquired 4,850 IBM shares worth approximately $1.36 million in the second quarter, while other institutional investors also established positions. Institutional investors and hedge funds now own 58.96% of IBM.
• IBM’s latest quarterly results matched expectations at $2.93 EPS, while revenue rose 1.1% year over year to $17.16 billion but fell short of analyst forecasts. The company declared a quarterly dividend of $1.69, equating to a 2.9% annualized yield.
• Analysts maintain a consensus “Moderate Buy” rating with a $265.90 target price, compared with IBM’s reported share price of $234.87. An IBM senior vice president separately sold 25,000 shares for approximately $5.76 million.

Sumitomo Life Insurance Co. acquired a new position in International Business Machines Corporation (NYSE:IBM - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 4,850 shares of the technology company's stock, valued at approximately $1,364,000.

Other large investors also recently added to or reduced their stakes in the company. Korea Investment CORP purchased a new stake in shares of International Business Machines in the 2nd quarter valued at $177,631,000. EP Wealth Advisors LLC purchased a new position in International Business Machines during the 2nd quarter valued at about $15,691,000. Heartland Bank & Trust Co acquired a new position in International Business Machines in the 2nd quarter valued at about $1,262,000. Rakuten Securities Inc. acquired a new position in International Business Machines in the 2nd quarter valued at about $981,000. Finally, Bard Associates Inc. purchased a new stake in International Business Machines during the second quarter worth about $58,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other International Business Machines 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 transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.27% of the stock is currently owned by company insiders.

International Business Machines Stock Performance

Shares of International Business Machines stock opened at $234.87 on Monday. The firm has a market capitalization of $221.28 billion, a P/E ratio of 20.84, a P/E/G ratio of 2.24 and a beta of 0.71. International Business Machines Corporation has a 52 week low of $199.19 and a 52 week high of $332.46. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The firm's 50 day moving average is $241.67 and its two-hundred day moving average is $247.02.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion during the quarter, compared to analysts' expectations of $17.46 billion. During the same quarter in the prior year, the business posted $2.80 EPS. The company's revenue for the quarter was up 1.1% on a year-over-year basis. Research analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's payout ratio is presently 59.98%.

Wall Street Analysts Forecast Growth

IBM has been the topic of a number of research reports. Wolfe Research lowered shares of International Business Machines to a "peer perform" rating in a report on Tuesday, June 23rd. Roth Capital restated a "buy" rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Craig Hallum started coverage on International Business Machines in a research report on Wednesday, August 19th. They set a "buy" rating on the stock. KeyCorp cut International Business Machines to a "sector weight" rating in a research note on Tuesday, June 23rd. Finally, Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a research note on Saturday, August 29th. Sixteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, International Business Machines presently has an average rating of "Moderate Buy" and a consensus target price of $265.90.

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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