Investment firm SPX Gestao de Recursos Ltda has taken a notable step in the third quarter by acquiring a substantial shareholding in International Business Machines Corporation (NYSE: IBM). The institutional investor purchased 10,000 shares, valued at approximately $2.82 million.
This acquisition is part of a broader trend among institutional investors adjusting their portfolios concerning IBM stock. CFS Investment Advisory Services LLC increased its stake in IBM by 0.4% during the same quarter, now holding 9,359 shares worth around $2.88 million after acquiring an additional 34 shares. Similarly, KPP Advisory Services LLC raised its investment in IBM by 1.7%, now owning 2,069 shares valued at $584,000 following a purchase of 34 shares.
Investment activity continued with Marco Investment Management LLC, which increased its stake in IBM by 0.3%, holding 10,774 shares worth approximately $3.04 million after buying another 34 shares. MA Private Wealth also reported a 1.5% rise in holdings, now owning 2,242 shares valued at $633,000, and Thoroughbred Financial Services LLC enhanced its stake by 0.8%, acquiring 4,300 shares valued at $1.21 million.
As of the latest reports, institutional investors collectively own 58.96% of IBM’s stock.
IBM Stock Performance and Earnings Report
On January 28, 2024, IBM released its quarterly earnings, showcasing strong performance. The company reported $4.52 earnings per share (EPS), surpassing analysts’ estimates of $4.33 by $0.19. The firm achieved a net margin of 15.69% and a return on equity of 38.15%, with revenues reaching $19.69 billion, exceeding the consensus estimate of $19.23 billion. This marks a 12.2% year-over-year increase in revenue.
As for IBM’s stock performance, shares opened at $258.19 on the trading day following the earnings announcement. The company’s market capitalization stands at $242.19 billion, with a price-to-earnings ratio of 23.16 and a beta of 0.73. Over the past year, the stock has fluctuated between a low of $214.50 and a high of $324.90.
Dividends and Insider Transactions
In addition to its earnings report, IBM declared a quarterly dividend of $1.68 per share, set to be paid on March 10, 2024. Shareholders on record as of February 10, 2024 will receive this dividend, which translates to an annualized total of $6.72 and a dividend yield of 2.6%. The company’s current payout ratio is 60.27%.
Recent insider transactions indicate a bullish outlook among IBM’s directors. On February 25, 2024, Director Michael Miebach acquired 434 shares at an average price of $233.33, totaling approximately $101,265.22. His total holdings now amount to 434 shares. Director David N. Farr also made a significant purchase, buying 1,000 shares at $304.00 each, with a total value of $304,000, increasing his ownership to 9,258 shares valued at approximately $2.81 million.
In the past three months, insiders have purchased a combined 1,484 shares of IBM stock, valued at about $417,157. Currently, insiders hold 0.18% of the company’s stock.
Founded in 1911, IBM has evolved from its origins as the Computing-Tabulating-Recording Company to a leading global technology and consulting firm. The company, headquartered in Armonk, New York, operates in areas including cloud computing, software, and technology services. It is publicly traded on the New York Stock Exchange under the ticker symbol IBM.
