Sanders Morris Harris LLC Makes New Investment in International Business Machines Corporation $IBM

Sanders Morris Harris LLC purchased a new stake in International Business Machines Corporation (NYSE:IBM) during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 12,308 shares of the technology company’s stock, valued at approximately $2,776,000.

A number of other large investors have also recently modified their holdings of IBM. BlackRock Inc. bought a new position in shares of International Business Machines in the second quarter worth approximately $21,586,659,000. State Street Corp lifted its position in International Business Machines by 2.7% during the second quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock valued at $15,760,430,000 after purchasing an additional 1,450,562 shares during the last quarter. Bank of America Corp DE bought a new stake in International Business Machines during the second quarter valued at approximately $4,214,868,000. Bank of New York Mellon Corp bought a new stake in International Business Machines during the second quarter valued at approximately $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in International Business Machines by 0.7% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock worth $2,143,245,000 after buying an additional 53,388 shares in the last quarter. Institutional investors own 58.96% of the company’s stock.

Key International Business Machines News

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: IBM and Siemens announced a research collaboration to advance IBM’s nanostack transistor architecture. Siemens will contribute expertise in electronic design automation, process simulation, lithography optimization and manufacturing software, potentially strengthening IBM’s long-term semiconductor and computing technology pipeline. IBM and Siemens Collaborate on Research to Advance Nanostack Architecture
• Positive Sentiment: IBM and IonQ reportedly advanced to Stage C of DARPA’s Quantum Benchmarking Initiative, providing validation for IBM’s quantum-computing efforts and a potential long-term growth opportunity, although near-term revenue remains uncertain. DARPA Just Revealed the 2 Best Quantum Computing Stocks to Buy Now
• Positive Sentiment: RBC reaffirmed an “outperform” rating and set a $270 price target, implying meaningful upside from the referenced market price. The endorsement may offer support after IBM’s recent weakness.
• Neutral Sentiment: IBM’s first-half operating cash flow increased to $7.77 billion from $6.07 billion, but nearly all of the improvement came from changes in financing receivables. That boosts liquidity, while raising questions about how sustainable the cash-flow growth is without stronger software and consulting performance. IBM: Is Customer Financing Flattering Its Cash Recovery?
• Negative Sentiment: Investors are focused on the Q3 earnings test, with AI and hybrid-cloud opportunities competing against intensifying competition, margin pressure and IBM’s still-premium valuation. Analysts expect earnings growth but question whether the company has the ingredients for a meaningful earnings beat. IBM Stock Before Q3 Earnings Release

International Business Machines Price Performance

NYSE:IBM traded down $2.38 during mid-day trading on Wednesday, reaching $228.40. The stock had a trading volume of 4,037,782 shares, compared to its average volume of 7,484,449. The firm has a 50 day moving average price of $232.22 and a two-hundred day moving average price of $243.77. The stock has a market capitalization of $215.18 billion, a P/E ratio of 20.27, a P/E/G ratio of 2.16 and a beta of 0.73. International Business Machines Corporation has a one year low of $199.19 and a one year high of $332.46. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The business had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the prior year, the firm earned $2.80 earnings per share. International Business Machines’s revenue for the quarter was up 1.1% on a year-over-year basis. As a group, analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.0%. International Business Machines’s dividend payout ratio is 59.98%.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.27% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. BMO Capital Markets decreased their price target on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a report on Thursday, July 23rd. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 15th. UBS Group reiterated a “neutral” rating on shares of International Business Machines in a research report on Tuesday. Wolfe Research lowered shares of International Business Machines to a “peer perform” rating in a research report on Tuesday, June 23rd. Finally, Jefferies Financial Group reduced their target price on International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $252.96.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.