International Business Machines Corporation $IBM Stock: Cultivar Capital Inc. Reduces Stake

Cultivar Capital Inc. trimmed its position in International Business Machines Corporation (NYSE:IBM) by 65.9% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,067 shares of the technology company’s stock after selling 3,995 shares during the quarter. International Business Machines comprises about 0.3% of Cultivar Capital Inc.’s investment portfolio, making the stock its 26th biggest position. Cultivar Capital Inc.’s holdings in International Business Machines were worth $455,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of International Business Machines during the second quarter worth $21,586,659,000. State Street Corp increased its holdings in International Business Machines by 2.7% during the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock worth $15,760,430,000 after purchasing an additional 1,450,562 shares during the period. Bank of America Corp DE boosted its position in International Business Machines by 7.0% during the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock valued at $3,893,669,000 after purchasing an additional 1,049,602 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of International Business Machines during the 2nd quarter worth approximately $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in International Business Machines by 0.7% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock worth $2,143,245,000 after acquiring an additional 53,388 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Trading Down 1.0%

Shares of NYSE:IBM traded down $2.38 during midday trading on Wednesday, reaching $228.40. 4,037,782 shares of the company’s stock were exchanged, compared to its average volume of 7,484,449. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The stock has a market cap of $215.18 billion, a price-to-earnings ratio of 20.27, a P/E/G ratio of 2.16 and a beta of 0.73. The firm’s 50 day simple moving average is $232.22 and its two-hundred day simple moving average is $243.77. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The company had revenue of $17.16 billion for the quarter, compared to analysts’ expectations of $17.46 billion. During the same period in the prior year, the firm earned $2.80 earnings per share. The firm’s revenue was up 1.1% compared to the same quarter last year. As a group, sell-side analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines’s payout ratio is presently 59.98%.

More International Business Machines News

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

• Positive Sentiment: IBM and Siemens announced a research collaboration to advance IBM’s nanostack transistor architecture. Siemens will contribute expertise in electronic design automation, process simulation, lithography optimization and manufacturing software, potentially strengthening IBM’s long-term semiconductor and computing technology pipeline. IBM and Siemens Collaborate on Research to Advance Nanostack Architecture
• Positive Sentiment: IBM and IonQ reportedly advanced to Stage C of DARPA’s Quantum Benchmarking Initiative, providing validation for IBM’s quantum-computing efforts and a potential long-term growth opportunity, although near-term revenue remains uncertain. DARPA Just Revealed the 2 Best Quantum Computing Stocks to Buy Now
• Positive Sentiment: RBC reaffirmed an “outperform” rating and set a $270 price target, implying meaningful upside from the referenced market price. The endorsement may offer support after IBM’s recent weakness.
• Neutral Sentiment: IBM’s first-half operating cash flow increased to $7.77 billion from $6.07 billion, but nearly all of the improvement came from changes in financing receivables. That boosts liquidity, while raising questions about how sustainable the cash-flow growth is without stronger software and consulting performance. IBM: Is Customer Financing Flattering Its Cash Recovery?
• Negative Sentiment: Investors are focused on the Q3 earnings test, with AI and hybrid-cloud opportunities competing against intensifying competition, margin pressure and IBM’s still-premium valuation. Analysts expect earnings growth but question whether the company has the ingredients for a meaningful earnings beat. IBM Stock Before Q3 Earnings Release

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Weiss Ratings lowered International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, September 29th. Morgan Stanley cut their target price on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating for the company in a report on Thursday, July 23rd. Wall Street Zen lowered International Business Machines from a “hold” rating to a “sell” rating in a research note on Saturday, September 12th. HSBC cut their price target on shares of International Business Machines from $175.00 to $174.00 in a report on Friday, July 24th. Finally, The Goldman Sachs Group set a $270.00 target price on International Business Machines and gave the company a “buy” rating in a report on Thursday, July 23rd. Eighteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, International Business Machines presently has an average rating of “Hold” and a consensus price target of $252.96.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.27% of the company’s stock.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.