On September 3, 2023, Independent Advisor Alliance announced that it had reduced its stake in International Business Machines Co. (NYSE:IBM) by 11.1% during the first quarter. The information was disclosed in the company’s most recent Form 13F filing with the Securities and Exchange Commission (SEC). As a result of this reduction, Independent Advisor Alliance now owns 47,616 shares of IBM’s stock, having sold 5,972 shares during the period. At the end of the quarter, the value of Independent Advisor Alliance’s holdings in International Business Machines amounted to approximately $6,242,000.
International Business Machines recently disclosed that it will be paying a quarterly dividend on Saturday, September 9th. Shareholders who were recorded as owners on Thursday, August 10th will receive a dividend of $1.66. It is important to note that individuals wishing to qualify for this dividend needed to hold their shares before the ex-dividend date which fell on Wednesday, August 9th. This dividend payment represents an annualized amount of $6.64 per share and offers investors a dividend yield of 4.49%, which is calculated by dividing the annual dividend by the current market price.
However, it should be noted that International Business Machines’s current dividend payout ratio (DPR) stands at an unusually high percentage of 307.41%. The DPR reflects how much of a company’s earnings are paid out to shareholders in dividends. A ratio above 100% implies that a company is distributing more funds to shareholders than it generates in profits.
Investors who have interests aligned with International Business Machines may want to carefully monitor both these developments and other factors influencing the company’s performance moving forward.
Please visit our website for additional information on our latest stock analysis report on IBM.
Analysis of Institutional Investment and Analyst Ratings for IBM Stock in 2023
On September 3, 2023, it was reported that several institutional investors and hedge funds have been actively trading shares of International Business Machines (IBM). Notable investors include Live Oak Investment Partners, GW&K Investment Management LLC, First Command Advisory Services Inc., Kepos Capital LP, and ZRC Wealth Management LLC. According to the data presented, approximately 56.16% of IBM stock is currently owned by hedge funds and other institutional investors.
In addition to investment activities, various research analysts have also provided their insights on IBM’s stock. JPMorgan Chase & Co. recently initiated coverage on the company with a “neutral” rating and a target price of $145.00. Stifel Nicolaus raised its target price from $140.00 to $144.00 and gave IBM a “buy” rating. Wedbush reaffirmed a “neutral” rating with a target price of $140.00, while Bank of America increased its price objective from $152.00 to $160.00 and maintained a “buy” rating for the stock. BMO Capital Markets raised their price target to $150.00 and gave IBM a “market perform” rating.
As of Friday’s mid-day trading session, IBM’s stock was valued at $147.87 per share, with 1,824,101 shares being traded compared to its average daily volume of 4,595,660 shares. The company has demonstrated consistent financial stability with a market capitalization of $134.71 billion and a PE ratio of 67.98. Its debt-to-equity ratio stands at 2.28, indicating its ability to meet its financial obligations.
International Business Machines Co.’s 12-month low reached $115.54 while its highest point stood at $153.21 within the same period. The firm maintains a strong position in the technology industry with key ratios such as quick ratio of 1.01 and a current ratio of 1.06. Additionally, its beta value is determined to be 0.85, suggesting a lower volatility compared to the overall market.
In terms of financial performance, IBM reported earnings per share (EPS) of $2.18 for the recent quarter, surpassing analysts’ expectations by $0.18. The company generated revenue of $15.48 billion during the same period, slightly below estimates of $15.58 billion. Despite a slight decrease in quarterly revenue compared to the previous year, IBM showcased a return on equity of 38.10% and a net margin of 3.35%. In the corresponding quarter last year, IBM reported earnings per share of $2.31.
Based on data from Bloomberg and consensus among research analysts, International Business Machines Co.’s stock has received a “Hold” rating with a consensus price target of $141.75.
As the year progresses, market observers and investors will closely monitor IBM’s performance and ongoing developments within the technology industry as it continues to navigate through an ever-changing landscape