Welch Group LLC Purchases 6,623 Shares of International Business Machines Corporation $IBM

Key Points

• Welch Group LLC increased its IBM position by 2.2%, purchasing 6,623 additional shares to hold 301,425 shares valued at approximately $84.8 million. Institutional investors collectively own 58.96% of IBM.
• IBM’s latest quarterly results met earnings expectations at $2.93 per share, while revenue of $17.16 billion fell short of estimates; revenue still increased 1.1% year over year. The company announced a quarterly dividend of $1.69 per share, representing a 2.9% annualized yield.
• Analyst sentiment remains a “Moderate Buy”, with 16 Buy, 11 Hold and one Sell rating and an average price target of $265.40, although several firms recently lowered their targets.

Welch Group LLC lifted its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 2.2% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 301,425 shares of the technology company's stock after buying an additional 6,623 shares during the period. International Business Machines makes up approximately 2.9% of Welch Group LLC's portfolio, making the stock its 7th largest position. Welch Group LLC's holdings in International Business Machines were worth $84,764,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in IBM. WMS Group LLC acquired a new position in International Business Machines in the second quarter valued at approximately $386,000. Cape Investment Advisory Inc. increased its stake in International Business Machines by 8.2% during the second quarter. Cape Investment Advisory Inc. now owns 2,619 shares of the technology company's stock worth $737,000 after acquiring an additional 199 shares during the last quarter. PFG Investments LLC raised its position in International Business Machines by 13.2% in the second quarter. PFG Investments LLC now owns 48,519 shares of the technology company's stock valued at $13,644,000 after purchasing an additional 5,657 shares during the period. Wealth Architects LLC raised its position in International Business Machines by 1.8% in the second quarter. Wealth Architects LLC now owns 4,686 shares of the technology company's stock valued at $1,318,000 after purchasing an additional 83 shares during the period. Finally, Abundance Wealth Counselors lifted its stake in shares of International Business Machines by 92.2% in the 2nd quarter. Abundance Wealth Counselors now owns 16,854 shares of the technology company's stock valued at $4,740,000 after purchasing an additional 8,084 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines Stock Performance

Shares of IBM stock opened at $236.17 on Friday. The firm has a 50 day moving average of $247.18 and a two-hundred day moving average of $250.88. The stock has a market capitalization of $222.50 billion, a PE ratio of 20.96, a P/E/G ratio of 2.31 and a beta of 0.70. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a 52 week low of $199.19 and a 52 week high of $332.46.

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

International Business Machines Dividend Announcement

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

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Stifel Nicolaus lowered their price target on International Business Machines from $290.00 to $235.00 and set a "buy" rating for the company in a report on Monday, July 20th. Bank of America upped their target price on shares of International Business Machines from $315.00 to $330.00 and gave the company a "buy" rating in a research report on Monday, July 6th. Citigroup dropped their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a research report on Friday, July 24th. Morgan Stanley reduced their price target on shares of International Business Machines from $293.00 to $190.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 23rd. Finally, Wolfe Research lowered shares of International Business Machines to a "peer perform" rating in a report on Tuesday, June 23rd. Sixteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $265.40.

More International Business Machines News

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

• Positive Sentiment: Industry research projects the global hyperscale data-center market will expand from $162.79 billion in 2024 to $608.54 billion by 2030, driven by AI, machine learning and cloud-computing demand. This supports IBM’s infrastructure, consulting and hybrid-cloud opportunities, although the report is not an IBM-specific contract announcement. Hyperscale Data Center Market Surges to $608.54 billion
• Positive Sentiment: IBM’s modular cryogenic technology is designed to help scale its quantum systems toward 1,000 programmable qubits and support its Quantum Starling plans by 2029. The development strengthens IBM’s technology narrative and long-term growth potential, though commercial revenue benefits remain several years away. Can IBM Scale Quantum Computing With Its New Cryogenic Systems?
• Positive Sentiment: A power producer and Cohesive received an award for improving workplace safety using IBM Maximo, providing third-party recognition of the software’s industrial asset-management capabilities. The item is supportive of IBM’s enterprise-software credibility but does not indicate a material near-term financial impact. CEPR and Cohesive Receive Maximo Award
• Neutral Sentiment: A Zacks review notes that IBM has risen 13.1% since its latest earnings report, indicating continued investor support after the results. However, the company’s reported revenue missed expectations while earnings per share matched estimates, leaving valuation and execution important considerations. Why Is IBM Up Since Its Last Earnings Report?
• Negative Sentiment: Bleichmar Fonti & Auld announced an investigation into potential securities-law violations related to IBM’s prior stock decline. The notice appears to be an investor-solicitation announcement rather than a finding of wrongdoing, but it can weigh on sentiment and introduce potential legal risk. IBM Ongoing Investigation

About International Business Machines

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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