Welch Group LLC Purchases 8,318 Shares of International Business Machines Corporation $IBM

Key Points

• Welch Group increased its IBM position by 2.8% in the third quarter, purchasing 8,318 shares and bringing its holdings to 309,743 shares valued at approximately $68.1 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.95 and revenue of $17.10 billion, exceeding analyst expectations while revenue grew 4.7% year over year.
• IBM declared a quarterly dividend of $1.69 per share, equivalent to $6.76 annually and a 2.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $266.12.

Welch Group LLC grew its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 2.8% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 309,743 shares of the technology company's stock after purchasing an additional 8,318 shares during the period. International Business Machines accounts for about 2.3% of Welch Group LLC's investment portfolio, making the stock its 14th largest position. Welch Group LLC's holdings in International Business Machines were worth $68,122,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Woodmont Investment Counsel LLC grew its position in shares of International Business Machines by 45.6% in the third quarter. Woodmont Investment Counsel LLC now owns 2,965 shares of the technology company's stock valued at $652,000 after purchasing an additional 928 shares during the period. Traynor Capital Management Inc. grew its holdings in International Business Machines by 4.5% in the 3rd quarter. Traynor Capital Management Inc. now owns 2,113 shares of the technology company's stock valued at $465,000 after buying an additional 91 shares during the period. Virtue Capital Management LLC increased its stake in shares of International Business Machines by 15.2% during the 3rd quarter. Virtue Capital Management LLC now owns 3,815 shares of the technology company's stock valued at $839,000 after acquiring an additional 504 shares during the last quarter. Hennessy Advisors Inc. lifted its holdings in shares of International Business Machines by 0.9% during the 3rd quarter. Hennessy Advisors Inc. now owns 22,800 shares of the technology company's stock worth $5,014,000 after acquiring an additional 204 shares during the period. Finally, Columbia Bank boosted its position in shares of International Business Machines by 16.8% in the third quarter. Columbia Bank now owns 3,640 shares of the technology company's stock worth $801,000 after acquiring an additional 524 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Price Performance

IBM opened at $257.80 on Monday. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46. The firm has a market cap of $243.65 billion, a price-to-earnings ratio of 21.98, a PEG ratio of 2.54 and a beta of 0.78. The company has a current ratio of 0.85, a quick ratio of 0.80 and a debt-to-equity ratio of 1.57. The company has a fifty day simple moving average of $235.17 and a 200 day simple moving average of $249.93.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The company had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. During the same period in the prior year, the company posted $2.65 EPS. International Business Machines's quarterly revenue was up 4.7% on a year-over-year basis. Equities research analysts expect that International Business Machines Corporation will post 12.41 EPS for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.6%. International Business Machines's dividend payout ratio (DPR) is presently 57.63%.

Insider Buying and Selling

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value 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 approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.27% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. JPMorgan Chase & Co. upped their price objective on International Business Machines from $250.00 to $269.00 and gave the stock an "overweight" rating in a report on Thursday, October 22nd. Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a research report on Saturday, October 24th. Bank of America dropped their price target on International Business Machines from $330.00 to $280.00 and set a "buy" rating for the company in a research note on Wednesday, July 15th. Barclays raised their price objective on International Business Machines from $262.00 to $277.00 and gave the stock an "overweight" rating in a report on Thursday, October 22nd. Finally, UBS Group lifted their price objective on International Business Machines from $236.00 to $243.00 and gave the company a "neutral" rating in a research note on Thursday, October 22nd. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $266.12.

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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