Latest news with #InternationalBusinessMachines'
Yahoo
3 days ago
- Business
- Yahoo
International Business Machines (NYSE:IBM) Unveils Ambitious Quantum Roadmap With 'Starling' Initiative
International Business Machines announced its plan for the IBM Quantum Starling, marking a major leap in quantum computing by 2029. This ambitious project aligns with IBM's broader technological advances, potentially influencing investor sentiment. Over the last quarter, IBM's share price increased 9%, demonstrating a strong performance. The increase in dividends and announcements of strategic product launches and partnerships played significant roles in this upward momentum. Despite the competitive tech landscape, as reflected by market-wide indices reaching new highs, IBM's developments likely reinforced its position, sustaining gains against broader market movements. We've spotted 4 possible red flags for International Business Machines you should be aware of. AI is about to change healthcare. These 22 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. IBM's announcement of the IBM Quantum Starling project represents a significant venture into quantum computing, potentially altering how investors view the company's growth strategy. The focus on technological advancements such as this aligns with IBM's emphasis on expanding its hybrid cloud and AI sectors, which are crucial for driving long-term revenue and earnings growth. However, reliance on economic stability and consulting services poses challenges, particularly if broader market conditions falter. The potential slowdown in hybrid cloud and AI adoption, as indicated in the narrative, could directly impact revenue projections and net margins. Over a five-year period, IBM's total shareholder return, including share price appreciation and dividends, was 192.41%, providing a substantial gain for investors. This performance places it favorably compared to recent one-year returns where the company also outpaced both the US IT industry and broader US market indices. Such a robust long-term return might encourage investor confidence, despite current market volatility. IBM's current share price of US$253.37 remains close to the consensus price target of US$253.27, indicating limited immediate upside as per market analyst expectations. The bearish consensus suggests a fair value closer to US$183.83, presenting an opportunity for adjustment if earnings fail to meet forecasted growth and if the competitive pressures in the tech industry are underestimated. The company's extensive engagement in innovative projects like the Quantum Starling could influence upward revisions in earnings forecasts if successfully implemented and adopted across key sectors. Examine International Business Machines' earnings growth report to understand how analysts expect it to perform. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IBM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
International Business Machines (NYSE:IBM) Unveils Ambitious Quantum Roadmap With 'Starling' Initiative
International Business Machines announced its plan for the IBM Quantum Starling, marking a major leap in quantum computing by 2029. This ambitious project aligns with IBM's broader technological advances, potentially influencing investor sentiment. Over the last quarter, IBM's share price increased 9%, demonstrating a strong performance. The increase in dividends and announcements of strategic product launches and partnerships played significant roles in this upward momentum. Despite the competitive tech landscape, as reflected by market-wide indices reaching new highs, IBM's developments likely reinforced its position, sustaining gains against broader market movements. We've spotted 4 possible red flags for International Business Machines you should be aware of. AI is about to change healthcare. These 22 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. IBM's announcement of the IBM Quantum Starling project represents a significant venture into quantum computing, potentially altering how investors view the company's growth strategy. The focus on technological advancements such as this aligns with IBM's emphasis on expanding its hybrid cloud and AI sectors, which are crucial for driving long-term revenue and earnings growth. However, reliance on economic stability and consulting services poses challenges, particularly if broader market conditions falter. The potential slowdown in hybrid cloud and AI adoption, as indicated in the narrative, could directly impact revenue projections and net margins. Over a five-year period, IBM's total shareholder return, including share price appreciation and dividends, was 192.41%, providing a substantial gain for investors. This performance places it favorably compared to recent one-year returns where the company also outpaced both the US IT industry and broader US market indices. Such a robust long-term return might encourage investor confidence, despite current market volatility. IBM's current share price of US$253.37 remains close to the consensus price target of US$253.27, indicating limited immediate upside as per market analyst expectations. The bearish consensus suggests a fair value closer to US$183.83, presenting an opportunity for adjustment if earnings fail to meet forecasted growth and if the competitive pressures in the tech industry are underestimated. The company's extensive engagement in innovative projects like the Quantum Starling could influence upward revisions in earnings forecasts if successfully implemented and adopted across key sectors. Examine International Business Machines' earnings growth report to understand how analysts expect it to perform. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IBM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
07-05-2025
- Business
- Yahoo
International Business Machines' (NYSE:IBM) Dividend Will Be Increased To $1.68
The board of International Business Machines Corporation (NYSE:IBM) has announced that it will be increasing its dividend by 0.6% on the 10th of June to $1.68, up from last year's comparable payment of $1.67. This will take the annual payment to 2.7% of the stock price, which is above what most companies in the industry pay. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. International Business Machines' Future Dividend Projections Appear Well Covered By Earnings Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, International Business Machines' dividend was higher than its profits, but the free cash flows quite comfortably covered it. Healthy cash flows are always a positive sign, especially when they quite easily cover the dividend. Looking forward, earnings per share is forecast to rise by 79.6% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 64%, which would make us comfortable with the sustainability of the dividend, despite the levels currently being quite high. NYSE:IBM Historic Dividend May 7th 2025 Check out our latest analysis for International Business Machines International Business Machines Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was $4.40 in 2015, and the most recent fiscal year payment was $6.68. This means that it has been growing its distributions at 4.3% per annum over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer. Dividend Growth Is Doubtful Investors could be attracted to the stock based on the quality of its payment history. Unfortunately things aren't as good as they seem. It's not great to see that International Business Machines' earnings per share has fallen at approximately 9.9% per year over the past five years. If earnings continue declining, the company may have to make the difficult choice of reducing the dividend or even stopping it completely - the opposite of dividend growth. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend. Our Thoughts On International Business Machines' Dividend Overall, we always like to see the dividend being raised, but we don't think International Business Machines will make a great income stock. The company is generating plenty of cash, but we still think the dividend is a bit high for comfort. We would probably look elsewhere for an income investment.
Yahoo
06-05-2025
- Business
- Yahoo
We Think You Can Look Beyond International Business Machines' (NYSE:IBM) Lackluster Earnings
Soft earnings didn't appear to concern International Business Machines Corporation's (NYSE:IBM) shareholders over the last week. We did some digging, and we believe the earnings are stronger than they seem. Our free stock report includes 5 warning signs investors should be aware of before investing in International Business Machines. Read for free now. NYSE:IBM Earnings and Revenue History May 6th 2025 How Do Unusual Items Influence Profit? Importantly, our data indicates that International Business Machines' profit was reduced by US$3.5b, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect International Business Machines to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On International Business Machines' Profit Performance Unusual items (expenses) detracted from International Business Machines' earnings over the last year, but we might see an improvement next year. Because of this, we think International Business Machines' earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 7.3% annually, over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So while earnings quality is important, it's equally important to consider the risks facing International Business Machines at this point in time. Case in point: We've spotted 5 warning signs for International Business Machines you should be aware of. Today we've zoomed in on a single data point to better understand the nature of International Business Machines' profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
15-02-2025
- Business
- Yahoo
Institutional investors control 63% of International Business Machines Corporation (NYSE:IBM) and were rewarded last week after stock increased 3.5%
Given the large stake in the stock by institutions, International Business Machines' stock price might be vulnerable to their trading decisions The top 25 shareholders own 41% of the company Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company Every investor in International Business Machines Corporation (NYSE:IBM) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 63% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Last week's 3.5% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 44% and last week's gain would have been more than welcomed. Let's delve deeper into each type of owner of International Business Machines, beginning with the chart below. Check out our latest analysis for International Business Machines Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that International Business Machines does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of International Business Machines, (below). Of course, keep in mind that there are other factors to consider, too. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. International Business Machines is not owned by hedge funds. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 10% of shares outstanding. With 8.5% and 6.0% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders. A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our data suggests that insiders own under 1% of International Business Machines Corporation in their own names. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$259m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over International Business Machines. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand International Business Machines better, we need to consider many other factors. For instance, we've identified 3 warning signs for International Business Machines that you should be aware of. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
