International Business Machines (NYSE:IBM) Shares Up 1.1% Following Dividend Announcement

International Business Machines Co. (NYSE:IBM) shares shot up 1.1% during mid-day trading on Tuesday after the company announced a dividend. The stock traded as high as $239.35 and last traded at $238.79. 922,194 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 5,003,829 shares. The stock had previously closed at $236.16.

The newly announced dividend which will be paid on Tuesday, June 10th. Investors of record on Friday, May 9th will be given a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a yield of 2.81%. This is an increase from International Business Machines’s previous quarterly dividend of $1.67. International Business Machines’s dividend payout ratio is 114.97%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on IBM. Erste Group Bank raised shares of International Business Machines from a “hold” rating to a “strong-buy” rating in a research note on Monday, March 17th. Morgan Stanley decreased their price target on shares of International Business Machines from $237.00 to $233.00 and set an “equal weight” rating for the company in a research report on Thursday, April 24th. JPMorgan Chase & Co. upped their price target on shares of International Business Machines from $233.00 to $244.00 and gave the company a “neutral” rating in a report on Thursday, January 30th. Jefferies Financial Group reissued a “hold” rating on shares of International Business Machines in a research report on Wednesday, April 23rd. Finally, KGI Securities set a $242.00 price target on shares of International Business Machines and gave the stock a “hold” rating in a research report on Thursday, April 24th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, International Business Machines presently has an average rating of “Hold” and a consensus price target of $242.41.

International Business Machines Stock Up 1.3 %

The stock has a market capitalization of $221.89 billion, a price-to-earnings ratio of 37.33, a price-to-earnings-growth ratio of 5.81 and a beta of 0.67. The firm has a 50 day simple moving average of $244.27 and a 200-day simple moving average of $233.97. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.04 and a quick ratio of 1.00.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, April 23rd. The technology company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.42 by $0.18. The company had revenue of $14.54 billion during the quarter, compared to analyst estimates of $14.41 billion. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%. The company’s revenue was up .5% on a year-over-year basis. During the same quarter last year, the business posted $1.68 earnings per share. On average, sell-side analysts forecast that International Business Machines Co. will post 10.78 EPS for the current fiscal year.

Insider Activity at International Business Machines

In other International Business Machines news, SVP Robert David Thomas sold 26,543 shares of the company’s stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the sale, the senior vice president now directly owns 45,007 shares of the company’s stock, valued at approximately $11,387,221.07. This represents a 37.10 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.18% of the stock is owned by insiders.

Institutional Trading of International Business Machines

A number of institutional investors and hedge funds have recently made changes to their positions in IBM. Security National Bank of SO Dak acquired a new position in International Business Machines in the 1st quarter valued at approximately $222,000. Callan Capital LLC raised its stake in International Business Machines by 32.1% during the first quarter. Callan Capital LLC now owns 2,471 shares of the technology company’s stock worth $614,000 after buying an additional 601 shares during the last quarter. Penserra Capital Management LLC grew its holdings in International Business Machines by 29.0% during the 1st quarter. Penserra Capital Management LLC now owns 84,668 shares of the technology company’s stock worth $21,052,000 after acquiring an additional 19,040 shares during the period. Cloud Capital Management LLC bought a new stake in shares of International Business Machines in the 1st quarter valued at $138,000. Finally, Argentarii LLC raised its stake in International Business Machines by 14.6% during the 1st quarter. Argentarii LLC now owns 9,950 shares of the technology company’s stock worth $2,474,000 after buying an additional 1,271 shares during the period. Institutional investors own 58.96% of the company’s stock.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.