Union Bancaire Privee UBP SA Decreases Stake in International Business Machines Corporation $IBM

Key Points

• Union Bancaire Privee UBP SA reduced its IBM stake by 70.8% in the first quarter, selling 44,245 shares and ending with 18,252 shares worth about $4.63 million.
• IBM drew attention after unveiling a sub-1-nanometer “nanostack” chip architecture, which analysts say could strengthen its long-term role in AI and next-generation computing. Some coverage noted the technology is still a research prototype, so commercial impact may take years.
• IBM also reported solid recent results and shareholder returns, with quarterly EPS of $1.91 beating estimates and revenue rising 9.5% year over year. The company raised its quarterly dividend to $1.69 per share, while the stock was up about 5.1% in Friday trading.

Union Bancaire Privee UBP SA cut its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 70.8% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 18,252 shares of the technology company's stock after selling 44,245 shares during the quarter. Union Bancaire Privee UBP SA's holdings in International Business Machines were worth $4,630,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Family CFO Inc purchased a new stake in shares of International Business Machines during the 4th quarter worth approximately $25,000. Basepoint Wealth LLC acquired a new position in International Business Machines during the fourth quarter worth $25,000. Joseph Group Capital Management acquired a new stake in International Business Machines in the fourth quarter valued at $28,000. Cornerstone Financial Management LLC purchased a new position in shares of International Business Machines in the fourth quarter valued at $28,000. Finally, SWAN Capital LLC acquired a new position in shares of International Business Machines during the 3rd quarter worth $28,000. Institutional investors and hedge funds own 58.96% of the company's stock.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM introduced a new “nanostack” chip architecture at the 0.7 nm node, with roughly 100 billion transistors on a fingernail-sized chip. Analysts at Wedbush said the development supports IBM’s long-term hardware ambitions as AI computing demand rises. IBM quantum foundry plan adds to long-term hardware strategy: Wedbush
• Positive Sentiment: Multiple reports said the announcement could extend Moore’s Law and improve chip performance and energy efficiency, reinforcing IBM’s relevance in next-generation AI infrastructure. IBM unveils tech for chip smaller than 1 nanometer in AI computing push
• Positive Sentiment: Investor sentiment also improved after commentary that the breakthrough positions IBM as a possible long-term winner in AI hardware, helping fuel the stock’s recent momentum. IBM Unveils Prototype for Sub-1-Nanometer AI Chip. Why It Matters.
• Neutral Sentiment: Some coverage noted the technology is still a research prototype and may not reach production for years, so the commercial impact is not immediate. IBM (IBM) Stock Surges 6% on Revolutionary Sub-Nanometer Chip Technology
• Negative Sentiment: One article argued IBM still faces skepticism from investors over execution and longer-term growth, even after the chip news, which could temper enthusiasm. 3 Reasons to Avoid IBM and 1 Stock to Buy Instead

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Jefferies Financial Group started coverage on shares of International Business Machines in a research note on Tuesday. They issued a "buy" rating on the stock. HSBC raised shares of International Business Machines from a "reduce" rating to a "hold" rating and upped their price target for the company from $218.00 to $231.00 in a report on Tuesday, April 28th. Barclays initiated coverage on shares of International Business Machines in a research report on Monday, June 1st. They issued an "overweight" rating and a $350.00 price target on the stock. Wolfe Research downgraded International Business Machines to a "peer perform" rating in a research report on Tuesday. Finally, KeyCorp lowered International Business Machines to a "sector weight" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $306.94.

International Business Machines Trading Up 5.1%

NYSE IBM opened at $271.36 on Friday. International Business Machines Corporation has a one year low of $212.34 and a one year high of $332.46. The company's 50 day moving average price is $253.83 and its 200 day moving average price is $267.26. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The firm has a market capitalization of $255.05 billion, a price-to-earnings ratio of 23.99, a PEG ratio of 2.81 and a beta of 0.67.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. During the same period in the previous year, the firm earned $1.60 earnings per share. International Business Machines's revenue for the quarter was up 9.5% on a year-over-year basis. On average, sell-side analysts predict that International Business Machines Corporation will post 12.39 EPS for the current 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 given a dividend of $1.69 per share. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 2.5%. International Business Machines's dividend payout ratio is currently 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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