Royal Fund Management LLC increased its holdings in International Business Machines Corporation (NYSE:IBM – Free Report) by 6.5% during the 3rd quarter, HoldingsChannel reports. The fund owned 47,407 shares of the technology company’s stock after acquiring an additional 2,897 shares during the quarter. Royal Fund Management LLC’s holdings in International Business Machines were worth $10,426,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also recently bought and sold shares of IBM. Assetmark Inc. lifted its position in shares of International Business Machines by 24.8% during the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock worth $15,624,000 after purchasing an additional 12,791 shares during the last quarter. Flputnam Investment Management Co. acquired a new position in International Business Machines in the second quarter worth about $15,237,000. Beacon Investment Advisory Services Inc. grew its stake in International Business Machines by 939.4% in the second quarter. Beacon Investment Advisory Services Inc. now owns 30,495 shares of the technology company’s stock worth $8,575,000 after purchasing an additional 27,561 shares in the last quarter. St. Louis Financial Planners Asset Management LLC increased its holdings in International Business Machines by 34.6% in the second quarter. St. Louis Financial Planners Asset Management LLC now owns 14,234 shares of the technology company’s stock valued at $4,121,000 after buying an additional 3,659 shares during the last quarter. Finally, Evercore Wealth Management LLC increased its holdings in International Business Machines by 9.0% in the first quarter. Evercore Wealth Management LLC now owns 62,801 shares of the technology company’s stock valued at $15,222,000 after buying an additional 5,196 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.
Insider Buying and Selling
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 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 $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.27% of the stock is currently owned by insiders.
Analysts Set New Price Targets
Several analysts have issued reports on the company. Weiss Ratings upgraded International Business Machines from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, October 14th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $300.00 target price on shares of International Business Machines in a report on Thursday. Citic Securities lifted their target price on International Business Machines from $294.00 to $297.00 and gave the stock a “buy” rating in a research report on Wednesday, July 29th. Robert W. Baird lifted their target price on International Business Machines from $230.00 to $260.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Argus lowered their price target on International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a report on Thursday, July 16th. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $266.12.
Get Our Latest Analysis on IBM
International Business Machines Trading Up 0.4%
International Business Machines stock opened at $252.42 on Friday. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46. The firm’s 50-day moving average is $232.68 and its 200-day moving average is $243.63. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The company has a market cap of $237.81 billion, a P/E ratio of 22.40, a PEG ratio of 2.42 and a beta of 0.73.
International Business Machines (NYSE:IBM – Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating analysts’ consensus estimates of $2.85 by $0.10. International Business Machines had a net margin of 15.99% and a return on equity of 35.08%. The business had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. During the same quarter in the prior year, the firm earned $2.65 EPS. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. On average, equities analysts expect that International Business Machines Corporation will post 12.34 earnings per share for the current year.
International Business Machines Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.7%. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.
Trending Headlines about International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: IBM delivered a strong third quarter. Revenue increased 4.7% year over year to $17.1 billion, while adjusted earnings of $2.95 per share exceeded expectations near $2.85. Software revenue rose 8% to $7.8 billion, Infrastructure revenue increased 4%, and delayed contracts returned. Reuters IBM earnings article
- Positive Sentiment: Cash generation and margins improved. IBM reported approximately $3.0 billion in free cash flow for the quarter and raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year. The board also declared a quarterly dividend of $1.69 per share. IBM Q3 revenue and cash flow article
- Positive Sentiment: Analysts raised targets after the report. JPMorgan lifted its target to $269, Stifel raised its target to $260 and RBC set a $270 target while reaffirming an outperform rating, signaling confidence that software, Red Hat and infrastructure demand can support further gains.
- Neutral Sentiment: Investors are looking for proof that the rebound can continue. Management said second-quarter softness reflected timing rather than weak demand, but the market remains focused on whether software growth—partly helped by the Confluent acquisition—and Red Hat momentum will persist in the fourth quarter. Fool IBM earnings analysis
- Negative Sentiment: Guidance and AI commentary weighed on sentiment. IBM maintained its full-year revenue-growth outlook rather than raising it, and CEO Arvind Krishna said lower-cost open AI models can deliver much of the performance of frontier models. Investors interpreted that view as a potential constraint on premium AI spending and IBM’s longer-term growth opportunity. Reuters IBM stock reaction article
- Negative Sentiment: Valuation remains a concern. Commentary from Seeking Alpha and Zacks characterized IBM as a high-margin company with comparatively modest growth, consulting challenges, meaningful debt and a premium valuation. That combination limits the margin for execution mistakes and helps explain why the stock has not sustained its post-earnings advance. Seeking Alpha IBM valuation article
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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