News Summary
Texas Bank & Trust Co recently acquired a stake in IBM by purchasing 7,302 shares valued at approximately $1,605,000. This decision highlights the bank’s confidence in IBM’s future, coinciding with a trend of institutional investors adjusting their stakes in the company. Several hedge funds have also increased their positions in IBM, reflecting a positive sentiment towards the tech giant’s potential in the market. With IBM’s solid earnings and commitment to shareholder returns, investor activity is poised to rise, showcasing the growing interest in IBM’s growth strategy.
Texas – Texas Bank & Trust Co has recently increased its investment in International Business Machines Co. (NYSE: IBM) by purchasing 7,302 shares during the fourth quarter of the fiscal year. This acquisition is valued at approximately $1,605,000. This move adds to a growing trend among institutional investors who have also adjusted their stakes in IBM in recent months.
In addition to Texas Bank & Trust Co, several other institutional investors have made notable changes to their IBM holdings. For instance, Tallon Kerry Patrick acquired a new position in IBM valued at $902,000. Similarly, Ritholtz Wealth Management increased its stake in IBM by 10.9%, resulting in ownership of 11,753 shares worth $2,584,000 following the purchase of an additional 1,157 shares.
Wealthcare Advisory Partners LLC raised its stake in IBM slightly by 0.3%, now owning 18,608 shares valued at $4,091,000 after acquiring an additional 61 shares. Merit Financial Group LLC also boosted its holdings by 20.5%, now owning 20,825 shares worth $4,578,000 after purchasing an additional 3,544 shares. Brooklyn Investment Group increased its stake by 1.1%, bringing its total ownership to 4,992 shares valued at $1,097,000 after acquiring 53 additional shares.
Currently, 58.96% of IBM’s stock is owned by hedge funds and other institutional investors, highlighting significant institutional interest in the technology company. As of Friday, IBM shares opened at $266.70, with a 50-day moving average of $243.74 and a 200-day moving average of $236.48.
Financial Indicators and Earnings Performance
IBM has reported a quick ratio of 1.00 and a current ratio of 1.04, indicating solid liquidity standing. Furthermore, the company’s debt-to-equity ratio stands at 1.82, reflecting its leverage position. Over the past year, IBM shares have fluctuated, recording a 12-month low of $163.53 and a high of $267.98. IBM boasts a market capitalization of $247.87 billion and a price-to-earnings ratio of 41.61, with a price-to-earnings-growth ratio pegged at 5.81. The company’s beta value is currently 0.64.
In its latest quarterly earnings report released on April 23rd, IBM announced earnings of $1.60 per share, surpassing analysts’ expectations of $1.42. Revenue for the quarter reached $14.54 billion, exceeding predictions of $14.41 billion, demonstrating a 0.5% year-over-year increase. Analysts forecast that IBM will report earnings of 10.78 per share for the current fiscal year.
Dividends and Analyst Ratings
IBM declared a quarterly dividend of $1.68 per share to be distributed on June 10th to stockholders of record on May 9th. This dividend reflects an increase from the prior quarterly distribution of $1.67, resulting in an annualized dividend of $6.72 and a dividend yield of 2.52%. IBM’s current payout ratio is noted at 115.66%, indicating it pays out more in dividends than it earns.
In terms of market sentiment, several analysts have evaluated IBM’s stock, providing a range of ratings. JPMorgan Chase & Co. raised their price target from $233.00 to $244.00 while maintaining a “neutral” rating. StockNews.com upgraded IBM from a “hold” to a “buy” rating. Wedbush reaffirmed an “outperform” rating with a price target of $300.00, while BMO Capital Markets kept a “market perform” rating. Bank of America increased their price objective from $260.00 to $270.00, reflecting a bullish stance on IBM’s future. Overall, the current consensus rating for IBM is “Moderate Buy,” with a target price of $249.06.
Insider Activity
In recent insider trading activity, SVP Robert David Thomas sold 26,543 shares of IBM on March 3rd at an average price of $253.01, totalling $6,715,644.43. Following this sale, Mr. Thomas retains 45,007 shares of the company, valued at approximately $11,387,221.07, indicating a 37.10% decrease in his ownership. Presently, insider ownership represents only 0.18% of IBM shares.
Company Overview
IBM operates globally, providing integrated solutions and services across various segments, including Software, Consulting, Infrastructure, and Financing, with a particular emphasis on hybrid cloud and artificial intelligence technology.
Deeper Dive: News & Info About This Topic
- MarketBeat: Texas Bank & Trust Co Invests in IBM
- News Journal: IBM Q1 2025 Financial Results
- LiveMint: IBM Layoffs
- Business Insider: Companies and Return to Office Mandates
- Wikipedia: IBM
