IBM (IBM:NYSE) Shares Trade Up Amid News of Apple (AAPL:NASDAQ) Partnership Goal Being Reached Early


Who would have thought that International Business Machines Corp. (NYSE:IBM) and Apple (NASDAQ:AAPL) would see a mutual benefit in partnering up for enterprise applications? When the agreement was reached last year very few investors or analysts believed that the two companies would reach a goal of creating 100 IBM MobileFirst apps for iOS by the end of this year. Today though, IBM (NYSE:IBM) announced that this goal has officially been released.

While year ago IBM and Apple (NASDAQ:AAPL) would have been seen as brutal competitors, today they are companies looking to complement one another, and apparently the strategy is working. Of the 100 apps released, they span an astounding 65 professions and 14 different industries which include retails, travel, automotive, consumer products, financial services and more. 48 of these apps all made their debuts sometime in the month of December.

“We see the transformation of our customers’ experience as a strategic differentiator for our insurance and financial advice business,” said Nicolas Moreau, Chairman and CEO of AXA, member of the AXA Management Committee. “We’re going to combine the sleek experience of an Apple Genius Bar with the expertise of our advisors to not only give our customers the experience they want, but an experience that dramatically exceeds their expectations.”

IBM stock is up 1.05% or $1.44 following the news, hitting $139.23 per share. About 2.78M shares traded hands. IBM has declined 20.02% since May 13, 2015 and is downtrending. It has underperformed the S&P500 by 17.40%.

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 $152.93 which is 9.84% above today’s ($139.23) stock price. International Business Machines was the topic of 26 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. JMP Securities initiated shares on November 20 with a “Market Perform” rating. Barclays Capital initiated shares with a”Underweight” rating and a $146 target share price in their report from an October 14. Citigroup maintained IBM stock in a recent report from October 21 with a “Neutral” rating. Goldman Sachs maintained the rating on September 22. Goldman Sachs has a “Neutral” rating and a $160 price target on shares. Finally, Deutsche Bank maintained the stock with a “Hold” rating in a report they issued on an October 20.

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 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 $134.23 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 9.55 P/E ratio.