Allied Investment Advisors LLC has decreased its stake in the International Business Machines Corporation (NYSE:IBM) by 4.9% during the second quarter of 2023. According to the firm’s recent filing with the Securities and Exchange Commission, Allied owned 4,876 shares after selling 252 shares during this period. At the end of the quarter, these holdings were valued at approximately $1.437 million.
Institutional investors continue to adjust their positions in IBM. Family CFO Inc. acquired a new stake worth $25,000 in the second quarter, while Christopher J. Hasenberg Inc. and SSA Swiss Advisors AG each made purchases worth $27,000 and $28,000, respectively, in the first quarter. Dagco Inc. also entered the market with a stake valued at around $31,000. Notably, Silicon Valley Capital Partners expanded its position by 322.6%, accumulating a total of 131 shares valued at $32,000 after purchasing an additional 100 shares.
Approximately 58.96% of IBM’s stock is now held by institutional investors and hedge funds.
Analysts Adjust Price Targets
Recent evaluations from various research firms have indicated a range of opinions on IBM’s stock. Wall Street Zen downgraded IBM from a “buy” to a “hold” rating on October 18, 2023. Meanwhile, the Goldman Sachs Group raised its price target from $270.00 to $310.00, maintaining a “buy” rating. Royal Bank of Canada adjusted its target from $315.00 to $300.00, while also issuing an “outperform” rating. Jefferies Financial Group increased its target price from $280.00 to $305.00, recommending a “hold” rating.
The consensus rating is currently “hold,” with an average target price set at $288.00. Analysts have given one “strong buy,” seven “buy,” eight “hold,” and one “sell” rating for the stock.
Stock Performance and Financial Highlights
As of last Friday, IBM’s shares opened at $307.78. The company has experienced a 12-month low of $203.51 and a high of $310.75. Its 50-day moving average stands at $266.21, while the 200-day moving average is $263.57. Key financial ratios include a current ratio of 0.93, a quick ratio of 0.87, and a debt-to-equity ratio of 1.97. IBM holds a market capitalization of $286.05 billion, a price-to-earnings ratio of 36.82, and a price-to-earnings-growth ratio of 4.35.
On October 22, 2023, IBM reported quarterly earnings showing an earnings per share (EPS) of $2.65, surpassing analysts’ expectations of $2.45 by $0.20. The company reported a net margin of 12.09% and a return on equity of 37.76%. Revenue for the quarter reached $16.33 billion, exceeding the consensus estimate of $16.10 billion and reflecting a 9.1% increase compared to the same period last year.
IBM has also set its guidance for fiscal year 2025 at an EPS of $10.78, according to analyst projections.
Additionally, IBM announced a quarterly dividend of $1.68 per share, which will be paid to stockholders on December 10, 2023. Shareholders on record as of November 10, 2023, will receive this dividend, which represents an annualized payment of $6.72 and a yield of 2.2%. The current dividend payout ratio stands at 80.38%.
With a strong focus on integrated solutions and services, IBM continues to operate through various segments, including Software, Consulting, Infrastructure, and Financing. The company’s emphasis on hybrid cloud and AI platforms positions it to support clients in their digital transformations.
