McKinley Carter Wealth Services Inc. has reduced its stake in International Business Machines Corporation (NYSE: IBM) by 6.0% during the second quarter of 2023, according to its latest 13F filing with the Securities and Exchange Commission (SEC). Following the sale of 58 shares, the firm now holds 908 shares valued at approximately $268,000.
This adjustment comes as other institutional investors also engage with IBM’s stock. For instance, Family CFO Inc. initiated a new position in IBM during the same quarter, investing around $25,000. Other notable transactions include Christopher J. Hasenberg Inc., which acquired shares worth around $27,000, and SSA Swiss Advisors AG, which invested approximately $28,000 in the first quarter of 2023. Silicon Valley Capital Partners significantly increased its stake by 322.6% in the first quarter, now owning 131 shares valued at $32,000. Currently, institutional investors collectively hold 58.96% of IBM’s stock.
Analyst Ratings and Market Performance
Several brokerages recently adjusted their ratings for IBM. On June 20, 2023, Wedbush increased its price target from $300.00 to $325.00, assigning an “outperform” rating. Stifel Nicolaus followed suit on July 16, 2023, raising its target from $290.00 to $310.00 with a “buy” rating. Meanwhile, Erste Group Bank downgraded IBM from a “buy” to a “hold” rating on August 14, 2023. Bank of America also reduced its price objective from $320.00 to $310.00 on July 24, 2023, maintaining a “buy” rating.
Overall, analysts have varied opinions on IBM, with one rating it as a Strong Buy, seven as Buy, eight as Hold, and one as Sell. According to MarketBeat, the average rating for IBM stands at “Hold” with a target price of $284.62.
IBM’s stock opened at $278.09 on Friday, reflecting a 3.5% decrease. The company has a market capitalization of $258.45 billion, a price-to-earnings ratio of 45.14, and a beta of 0.73. The current quick ratio is 0.87, while the debt-to-equity ratio is 2.00. Over the last 52 weeks, IBM’s stock has traded as low as $203.51 and as high as $301.04.
Recent Earnings and Dividend Announcement
On July 23, 2023, IBM reported earnings of $2.80 per share, surpassing analysts’ estimates of $2.65 by $0.15. The company’s revenue for the quarter reached $16.98 billion, exceeding expectations of $16.58 billion. Year-over-year, IBM’s revenue increased by 7.7%, up from $2.43 per share in the same quarter of the previous year. The technology giant has set a fiscal year 2025 guidance projecting earnings per share of $10.78.
IBM also announced a quarterly dividend of $1.68 per share, paid on September 10, 2023, to shareholders who were recorded as of August 8, 2023. This dividend represents an annualized total of $6.72 with a yield of 2.4%. The company’s payout ratio currently stands at 109.09%.
International Business Machines Corporation operates globally through its various segments, including Software, Consulting, Infrastructure, and Financing. The company focuses on providing hybrid cloud and artificial intelligence solutions to help clients with their digital transformations.
For further information regarding hedge fund activities related to IBM, interested parties can access detailed filings and trades at HoldingsChannel.com.
