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 Bank & Trust Co. has expanded its investments in International Business Machines Co. (NYSE: IBM), acquiring a newfound stake valued at approximately $1.6 million in the company during the fourth quarter of 2022. The institutional investor purchased 7,302 shares of IBM’s stock, showcasing a growing confidence in the tech giant amidst a broader trend of institutional investments in the company.
This acquisition comes alongside similar moves by various hedge funds and institutional investors, indicating a notable shift in sentiment toward IBM’s stock. For instance, Tallon Kerry Patrick secured a new position in IBM worth $902,000 in the same quarter, while Ritholtz Wealth Management increased its holdings by 10.9%, reaching 11,753 shares valued at $2.58 million. Wealthcare Advisory Partners LLC made a marginal boost to its stake, raising its ownership by 0.3% to 18,608 shares, now worth $4.09 million after acquiring an additional 61 shares.
Merit Financial Group LLC saw a significant increase by boosting its ownership by 20.5%, amassing 20,825 shares valued at $4.58 million following the purchase of 3,544 shares. Brooklyn Investment Group also expanded its stake in IBM by 1.1%, now owning 4,992 shares worth $1.1 million after acquiring 53 shares. Collectively, hedge funds and institutional investors own approximately 58.96% of IBM’s stock, highlighting the considerable institutional interest in the company.
As of the latest market data, IBM shares opened at $266.70. The stock’s performance shows a 50-day moving average of $243.74 and a 200-day moving average of $236.48. Over the past 12 months, IBM has seen a low of $163.53 and a high of $267.98, with a market capitalization of $247.87 billion. The company’s financial health is reflected in its quick ratio of 1.00, a current ratio of 1.04, and a relatively high debt-to-equity ratio of 1.82.
In their most recent quarterly earnings report, IBM detailed earnings of $1.60 per share, surpassing analysts’ expectations of $1.42 per share. With a reported revenue of $14.54 billion for the quarter, IBM exceeded the anticipated $14.41 billion, representing a year-over-year growth of 0.5%. Analysts project that IBM will post 10.78 earnings per share for the fiscal year ahead, indicating positive expectations for the company’s financial trajectory.
In a move to reward shareholders, IBM declared a quarterly dividend of $1.68 per share, set to be distributed on June 10 to stockholders of record on May 9. This dividend marks a slight increase from the previous payout of $1.67 per share, translating to an annualized rate of $6.72 and a dividend yield of 2.52%. However, the company’s payout ratio currently stands at 115.66%, indicating that it pays out more in dividends than it earns in profits.
Market analysts have shown varied sentiments regarding IBM’s stock. JPMorgan Chase & Co. recently raised their price target from $233.00 to $244.00 while issuing a “neutral” rating. Meanwhile, StockNews.com upgraded IBM to a “buy” rating, and Wedbush maintained an “outperform” rating with a $300 price target. In contrast, BMO Capital Markets kept a “market perform” stance on the stock. The consensus from analysts ranges from one sell, eight hold, nine buy, to one strong buy rating, culminating in a “Moderate Buy” rating with a consensus target price of $249.06.
On March 3, SVP Robert David Thomas reportedly sold 26,543 shares of IBM at an average price of $253.01, totaling approximately $6.71 million in the transaction. Following the sale, he retains 45,007 shares valued at about $11.39 million, marking a 37.10% reduction in ownership. Insider ownership of IBM shares stands at around 0.18%.
IBM operates across various segments providing integrated solutions and services globally, with a focus on hybrid cloud and AI technologies. The company’s diversified operations encompass Software, Consulting, Infrastructure, and Financing, which align with its strategic emphasis on hybrid cloud capabilities and advancements in artificial intelligence.
Deeper Dive: News & Info About This Topic
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- News Journal: IBM Q1 2025 Financial Results
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