NewEdge Wealth Increases Stake in IBM with 6,816 Share Purchase

NewEdge Wealth LLC has expanded its investment in the International Business Machines Corporation (NYSE: IBM) by acquiring an additional 6,816 shares during the third quarter of 2023. This purchase represents a 3.6% increase in holdings, bringing NewEdge’s total ownership to 198,269 shares. As of the latest filing with the Securities and Exchange Commission, these shares are valued at approximately $60.8 million, making IBM the 18th largest position in NewEdge’s portfolio.

The tech giant’s stock accounts for about 0.9% of NewEdge’s overall investments. Other institutional investors have also been active with IBM shares. Brighton Jones LLC, for instance, increased its holdings by 12.4% in the fourth quarter, now owning 21,011 shares worth $4.6 million. Sivia Capital Partners LLC raised its stake by 10.6% in the second quarter, while Phoenix Financial Ltd. initiated a new investment valued at approximately $2.03 million during the same period. In total, hedge funds and institutional investors collectively own 58.96% of IBM’s stock.

In related news, on January 30, 2024, IBM Director David N. Farr purchased 1,000 shares at an average price of $304.00 per share, totaling $304,000. This acquisition has increased his ownership of IBM stock by 12.11%, bringing his total shares to 9,258, valued at approximately $2.81 million. Insiders currently hold 0.18% of the company’s stock.

Recent Performance and Earnings Report

IBM’s shares saw a 1.0% increase following the release of its quarterly earnings on January 28, 2024. The company reported earnings of $4.52 per share, surpassing analysts’ expectations of $4.33 by $0.19. IBM achieved a return on equity of 38.15% and a net margin of 15.69%. The company generated $19.69 billion in revenue for the quarter, significantly exceeding the forecast of $19.23 billion. This is a 12.2% increase compared to the same quarter last year, when IBM reported earnings of $3.92 per share.

Analysts anticipate that IBM will post an earnings per share figure of $10.78 for the current fiscal year.

Dividend Announcement and Analyst Ratings

IBM has declared a quarterly dividend of $1.68, set to be paid on March 10, 2024. The record date for shareholders is February 10, 2024, and the ex-dividend date is also February 10, 2024. This results in an annualized dividend of $6.72 and a yield of 2.6%. The company’s payout ratio stands at 60.27%.

Several financial research firms have recently provided insights into IBM’s stock performance. Morgan Stanley set a target price of $304.00, while JPMorgan Chase & Co. raised their target from $312.00 to $317.00, maintaining a “neutral” rating. Stifel Nicolaus adjusted its price objective from $325.00 to $340.00 and affirmed a “buy” rating. Argus set a target price of $360.00. According to MarketBeat, IBM currently holds an average rating of “Moderate Buy” with a consensus target price of $330.07.

Founded in 1911, the International Business Machines Corporation is a leading global technology and consulting firm based in Armonk, New York. IBM’s diverse offerings include cloud computing, software, infrastructure, systems, and technology services. It is publicly traded on the New York Stock Exchange under the ticker symbol IBM.