While earnings reports are getting most of the press today, acquisitions are also seemingly heating up. International Business Machines Corp. (NYSE:IBM) has just announced that their ‘Interactive Experience’ unit will be acquiring an online digital advertising agency called Resource/Ammirati. The company, which employs 300 individuals will give IBM quite a team.
“With the scale we had already, we weren’t looking for a 5 or 10-person shop,” says John Armstrong, North American lead for IBM iX. “The big picture is our determination to lead in this space.”
With offices around the country, Resource/Ammirati already has several customers who are shared by International Business Machines Corp. (NYSE:IBM). These customers include Nestle, DSW, White Castle, Victoria’s Secret, Birchbox and more. Resource/Ammirati will now be able to utilize IBM’s 24 design studios around the world, plus the power of their Watson computer to bring an even better service to their customers. The stock is up 1.14% or $1.38 following the news, hitting $122.34 per share. About 3.06 million shares traded hands. IBM has declined 28.26% since June 23, 2015 and is downtrending. It has underperformed the S&P500 by 19.40%.
From a total of 17 analysts covering International Business Machines (NYSE:IBM) stock, 4 rate it a “Buy”, 3 a “Sell”, and 10 a “Hold”. This means that 24% of the ratings are positive. The highest target price is $178 while the lowest target price is $125. The mean of all analyst targets is $151.33 which is 23.70% above today’s ($122.34) stock price. International Business Machines was the topic of 29 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on January 15 with a “Sector Perform” rating. Barclays Capital initiated shares with a”Underweight” rating and a $146 target share price in their report from an October 14. JMP Securities initiated IBM stock in a recent report from November 20 with a “Market Perform” rating. Argus Research upgraded the rating on August 26. Argus Research has a “Buy” rating and a $175 price target on shares. Finally, S&P Research maintained the stock with a “Buy” rating in a report they issued on an October 21.
The institutional sentiment increased to 0.81 in Q2 2015. It’s up 0.04, from 0.77 in 2015Q2. The ratio improved, as 91 funds sold all their International Business Machines Corp. shares they owned while 707 reduced their positions. 81 funds bought stakes while 569 increased their total positions. Institutions now own 562.90 million shares which is 1.71% more than the previous share count of 553.42 million in 2015Q2.
Fairfax Financial Holdings Ltd Can holds 18.27% of its total portfolio in International Business Machines Corp., equating to 1.36 million shares. Shanda Payment Holdings Ltd. owns 87,600 shares representing 11.06% of their total US portfolio. Moreover, Berkshire Hathaway Inc has 9.22% of their total portfolio invested in the company, equating to 81.03 million shares. The Japan-based Hikari Power Ltd has a total of 7.9% of their portfolio invested in the stock. Torchmark Corp, a Texas-based fund reported 69,400 shares owned.
Since April 30, 2015, the stock had 0 buys, and 7 insider sales for a total of $6.71 million in net activity. Di Leo Allen Bruno V sold 18,500 shares worth $2.65M. Rosamilia Thomas W sold 2,700 shares worth $397,926. Van Kralingen Bridget A sold 2,850 shares worth $413,739. Rhodin Michael D. sold 3,000 shares worth $484,887. The insider Clementi Erich sold 5,400 shares worth $931,847.
International Business Machines Corporation is a technology company. The company has a market cap of $117.71 billion. The Firm operates in five business divisions: Global Technology Services , which includes Strategic Outsourcing, Integrated Technology Services, Cloud and Technology Support Services, and also provides information technology (IT) infrastructure and business process services; Global Business Services (GBS), which offers its services across Consulting and Systems Integration, Global Process Services and Application Management Services; Software, which consists of middleware and operating systems software; Systems and Technology (STG), which provides infrastructure technologies, and Global Financing, which provides financing solutions for products or services that are critical to the end users’ business operations. It has 8.98 P/E ratio.