Great Lakes Advisors takes new $6M stake in IBM
What's the deal? Great Lakes Advisors LLCDealroom has a profile for this one. Try Dealroom → bought a new position in IBMDealroom has a profile for this one. Try Dealroom → during the second quarter, according to Holdings Channel. The firm acquired 21,502 shares valued at about $6,047,000.
The context: Other institutional investors have also moved on the stock. Virginia Retirement Systems boosted its holding by 424.6% in the fourth quarter to 260,740 shares worth $77,234,000, while AssetmarkDealroom has a profile for this one. Try Dealroom → lifted its stake 24.8% in the first quarter to 64,458 shares worth $15,624,000.
The numbers: Institutional investors now own 58.96% of IBM stock. Rice PartnershipDealroom has a profile for this one. Try Dealroom → and Sage Investment AdvisersDealroom has a profile for this one. Try Dealroom → each opened fresh positions in the fourth quarter, worth roughly $3,317,000 and $4,101,000.
How's the stock? IBM opened at $234.00 on Friday, below its 50-day moving average of $242.40 and 200-day average of $247.21. The company carries a market cap of $220.46 billion and a P/E ratio of 20.76, with a 52-week range of $199.19 to $332.46.
Earnings check: In results reported July 22, IBM posted earnings of $2.93 per share, matching estimates. Revenue of $17.16 billion missed analyst forecasts of $17.46 billion but rose 1.1% year on year.
What about insiders? SVP Robert Thomas sold 25,000 shares on August 26 at an average of $230.32, a $5,758,000 transaction that cut his holding by 34.34%. Insiders own 0.27% of the company.
The dividend: IBM declared a quarterly dividend of $1.69 per share, payable September 10 to shareholders of record on August 10. That equals a $6.76 annualised payout and a 2.9% yield, with a payout ratio of 59.98%.
The signal: Fresh buying from Great Lakes and other funds points to steady institutional appetite for IBM, even as the shares trade below their moving averages and revenue growth stays thin.
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