Retirement Systems of Alabama reduced its stake in shares of International Business Machines Corporation (NYSE:IBM – Free Report) by 10.5% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 614,833 shares of the technology company’s stock after selling 72,279 shares during the quarter. Retirement Systems of Alabama’s holdings in International Business Machines were worth $135,220,000 at the end of the most recent quarter.
Several other large investors have also recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in International Business Machines during the 2nd quarter valued at about $21,586,659,000. Bank of America Corp DE bought a new position in International Business Machines during the 2nd quarter worth approximately $4,214,868,000. Bank of New York Mellon Corp purchased a new position in International Business Machines in the 2nd quarter worth approximately $2,606,782,000. Legal & General Group Plc purchased a new position in International Business Machines in the 2nd quarter worth approximately $1,874,733,000. Finally, Wellington Management Group LLP increased its stake in International Business Machines by 2,362.2% in the 2nd quarter. Wellington Management Group LLP now owns 6,549,393 shares of the technology company’s stock worth $1,841,755,000 after purchasing an additional 6,283,395 shares during the period. Hedge funds and other institutional investors own 58.96% of the company’s stock.
Insider Buying and Selling
In related news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction 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 sale, the senior vice president owned 47,800 shares of the company’s stock, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.27% of the stock is owned by insiders.
International Business Machines News Roundup
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: IBM deployed its first quantum computer in Illinois, at the Illinois Quantum and Microelectronics Park. The installation builds research and industry partnerships and is part of a state initiative expected to create 750 technology jobs. It strengthens IBM’s quantum-computing presence, though commercial returns may take time. Can IBM’s Latest Quantum System Boost Illinois’ Innovation Future?
- Positive Sentiment: IBM-owned Apptio added connections and cost-management tools to help businesses track AI usage and spending, forecast budgets, and assess investments against business results. The update could help IBM capture demand as enterprises seek to manage the cost of adopting AI. Apptio Expands Portfolio to Help Enterprises Connect AI Spending to Business Value
- Positive Sentiment: Quantum X Labs said its AI-powered error-correction program is running on three IBM quantum processors and showed up to 20% fewer logical decoding failures. This offers a potential third-party validation of IBM hardware, although the announcement comes from Quantum X Labs rather than IBM. Quantum X Labs Expands AI-Powered Quantum Error Correction Program
- Neutral Sentiment: A Seeking Alpha analysis sees IBM’s enterprise AI portfolio and software growth as strengths, but rates the shares Hold, citing competition and a valuation it considers fair. That view suggests limited near-term upside based on its $249 price target. IBM: A Full Enterprise AI Stack, But Rivals Keep It A Hold
- Negative Sentiment: The European Union is suing IBM and partners Atos and Leonardo over repeated delays in developing the bloc’s Entry/Exit border system. The case raises potential legal costs and could weigh on IBM’s reputation and government-contract execution; the reports do not specify the financial exposure. EU sues IBM and partners over troubled border system
International Business Machines Stock Up 0.5%
Shares of NYSE:IBM opened at $246.32 on Tuesday. The stock’s 50-day moving average is $236.97 and its 200 day moving average is $248.39. The company has a market cap of $232.80 billion, a PE ratio of 21.00, a P/E/G ratio of 2.50 and a beta of 0.78. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46.
International Business Machines (NYSE:IBM – Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.10. The business had revenue of $17.10 billion during the quarter, compared to analysts’ expectations of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The business’s revenue was up 4.7% on a year-over-year basis. During the same quarter last year, the business posted $2.65 EPS. Sell-side analysts anticipate that International Business Machines Corporation will post 12.41 EPS 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. Investors of record on Tuesday, November 10th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Tuesday, November 10th. International Business Machines’s dividend payout ratio is currently 57.63%.
Analyst Ratings Changes
Several analysts have weighed in on the company. Weiss Ratings downgraded International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, October 29th. Jefferies Financial Group raised their target price on shares of International Business Machines from $270.00 to $280.00 and gave the stock a “buy” rating in a report on Thursday, October 22nd. Susquehanna set a $275.00 target price on shares of International Business Machines in a research note on Friday. Morgan Stanley upped their price target on shares of International Business Machines from $238.00 to $240.00 and gave the company an “equal weight” rating in a report on Thursday, October 22nd. Finally, UBS Group upped their price target on shares of International Business Machines from $236.00 to $243.00 and gave the company a “neutral” rating in a report on Thursday, October 22nd. Nineteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and a consensus target price of $266.88.
Get Our Latest Stock Analysis on International Business Machines
International Business Machines Profile
International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers.
IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.
The company traces its roots to the Computing-Tabulating-Recording Company, formed in 1911, and adopted the name International Business Machines in 1924.
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