International Business Machines (NYSE:IBM) Issues Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Key Points

• International Business Machines (IBM) reported earnings of $2.65 per share for the quarter, exceeding the consensus estimate of $2.43 by $0.22.
• Following the earnings announcement, IBM's stock price increased by 2%, reaching $287.57 during trading.
• Institutional investors own 58.96% of IBM's stock, with several firms increasing their holdings in the company recently.

International Business Machines (NYSE:IBM - Get Free Report) announced its earnings results on Wednesday. The technology company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.43 by $0.22, Zacks reports. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%.

International Business Machines Stock Up 2.0%

Shares of International Business Machines stock traded up $5.52 during trading on Wednesday, reaching $287.57. The stock had a trading volume of 9,644,311 shares, compared to its average volume of 4,744,020. The company has a market capitalization of $267.27 billion, a price-to-earnings ratio of 46.68, a P/E/G ratio of 4.36 and a beta of 0.73. The stock has a fifty day moving average price of $262.97 and a two-hundred day moving average price of $262.39. International Business Machines has a 52 week low of $203.51 and a 52 week high of $301.04. The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 2.00.

Institutional Trading of International Business Machines

Institutional investors have recently modified their holdings of the company. Brighton Jones LLC lifted its holdings in shares of International Business Machines by 12.4% in the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after purchasing an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC increased its position in shares of International Business Machines by 10.6% in the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock valued at $571,000 after acquiring an additional 186 shares during the last quarter. ICONIQ Capital LLC increased its position in shares of International Business Machines by 13.3% in the second quarter. ICONIQ Capital LLC now owns 1,386 shares of the technology company's stock valued at $409,000 after acquiring an additional 163 shares during the last quarter. CTC Alternative Strategies Ltd. increased its position in shares of International Business Machines by 6.6% in the second quarter. CTC Alternative Strategies Ltd. now owns 1,300 shares of the technology company's stock valued at $383,000 after acquiring an additional 80 shares during the last quarter. Finally, Strategic Investment Advisors MI increased its position in shares of International Business Machines by 11.5% in the second quarter. Strategic Investment Advisors MI now owns 1,206 shares of the technology company's stock valued at $355,000 after acquiring an additional 124 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of brokerages have commented on IBM. Erste Group Bank downgraded International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. Stifel Nicolaus raised their price target on International Business Machines from $290.00 to $310.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. UBS Group increased their price objective on International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a research report on Thursday, July 24th. Sanford C. Bernstein initiated coverage on International Business Machines in a research report on Monday, September 15th. They issued a "market perform" rating and a $280.00 price objective on the stock. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $315.00 price objective on shares of International Business Machines in a research report on Thursday, October 16th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $289.08.

International Business Machines Company Profile

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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