The Vanguard Group, Inc. recently announced the acquisition of new stake in International Business Machines Corporation (NYSE:IBM). The institutional investor has increased its shareholding in the Technology company by 0.72% to 77.98 million shares with purchase of 0.56 million shares. This fresh investment now brings its stake to 8.56% valued currently at $11.24 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.9 million to 54.44 million shares. And BlackRock Fund Advisors has lifted its position by 2.70% or 1.34 million shares – to 50.96 million shares.
With over 4.34 million International Business Machines Corporation (IBM) shares trading Tuesday and a closing price of $146.30 on the day, the dollar volume was approximately $635.08 million. The shares have shown a positive half year performance of 16.50% and its price on 09/12/23 lost nearly -1.40%. Currently, there are 911.01M common shares owned by the public and among those 910.15M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 18 analysts who have offered their price forecasts for IBM have a consensus price objective of $145.73. The analysts have set the share’s price value over the next 12 months at a high of $175.00 and a low of $110.00. The average price target is -1.77% below its recent price level and a downside to the estimated low will see the stock lose -33.0% over that period. But an upside of 16.4% will see the stock hit the forecast high price target while median target price for the stock is $145.00.
Insiders at the company have transacted a total of 84 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 41 of these insider trades were purchases, accounting for 372,590 shares. Insider sales of the common stock occurred on 43 occasions, with total insider shares sold totaling 221,850 shares.
The top 3 mutual fund holders in International Business Machines Corporation are Vanguard Total Stock Market ETF, Vanguard 500 Index Fund, and Fidelity 500 Index Fund. Vanguard Total Stock Market ETF owns 28.28 million shares of the company’s stock, all valued at over $4.08 billion. The company sold 29946.0 shares recently to bring their total holdings to about 3.10% of the shares outstanding. Vanguard 500 Index Fund bought 0.13 million shares to see its total holdings expand to 21.75 million shares valued at over $3.14 billion and representing 2.39% of the shares outstanding. Fidelity 500 Index Fund bought 66201.0 shares to bring its total holdings to over 10.32 million shares at a value of $1.49 billion. Fidelity 500 Index Fund now owns shares totaling to 1.13% of the shares outstanding.
Shares of International Business Machines Corporation (NYSE: IBM) opened at $147.92, down -$0.46 from a prior closing price of $148.38. However, the script later moved the day high at 148.00, down -1.40%. The company’s stock has a 5-day price change of -1.24% and 7.24% over the past three months. IBM shares are trading 3.84% year to date (YTD), with the 12-month market performance up to 13.24% higher. It has a 12-month low price of $115.54 and touched a high of $153.21 over the same period. IBM has an average intraday trading volume of 4.12 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.02%, 3.60%, and 7.78% respectively.
Institutional ownership of International Business Machines Corporation (NYSE: IBM) shares accounts for 58.50% of the company’s 911.01M shares outstanding. Mutual fund holders own 28.33%, while other institutional holders and individual stakeholders account for 29.90% and 0.41% respectively.
It has a market capitalization of $133.14B and a beta (3y monthly) value of 0.85. The stock’s trailing 12-month PE ratio is 71.33, while the earnings-per-share (ttm) stands at $2.05. The company has a PEG of 15.66 and a Quick Ratio of 1.00 with the debt-to-equity ratio at 2.59. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.00% over the week and 1.05% over the month.
Analysts forecast that International Business Machines Corporation (IBM) will achieve an EPS of $2.15 for the current quarter, $3.87 for the next quarter and $10.08 for 2024. The lowest estimate earnings-per-share for the quarter is $2.09 while analysts give the company a high EPS estimate of $2.25. Comparatively, EPS for the current quarter was $1.81 a year ago. Earnings per share for the fiscal year are expected to decrease by -60.30%, and 5.35% over the next financial year. EPS should grow at an annualized rate of 4.55% over the next five years, compared to -29.90% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 18 brokerage firm advisors rate International Business Machines Corporation (IBM) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 12 of the 18 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the IBM, a number of firms have released research notes about the stock. BMO Capital Markets stated their Market Perform rating for the stock in a research note on July 17, 2023, with the firm’s price target at $145-$150.
