2,406 International Business Machines Corporation $IBM Shares Sold by Culbertson A N & Co. Inc.

Key Points

• Culbertson A N & Co. reduced its IBM stake by 23.5% in the third quarter, selling 2,406 shares and retaining 7,822 shares valued at approximately $1.72 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly earnings of $2.95 per share on revenue of $17.1 billion, beating analyst expectations, with revenue up 4.7% year over year. The company also declared a quarterly dividend of $1.69 per share, yielding about 2.7% annually.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $266.12, although concerns remain about IBM’s valuation, debt, modest growth and unchanged full-year revenue guidance.

Culbertson A N & Co. Inc. trimmed its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 23.5% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 7,822 shares of the technology company's stock after selling 2,406 shares during the quarter. Culbertson A N & Co. Inc.'s holdings in International Business Machines were worth $1,720,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently modified their holdings of IBM. Harborfront Financial Group LLC purchased a new stake in shares of International Business Machines during the second quarter worth approximately $27,000. Hara Capital LLC acquired a new stake in shares of International Business Machines during the second quarter worth $28,000. Bare Financial Services Inc grew its position in International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock valued at $29,000 after buying an additional 55 shares during the last quarter. Portus Wealth Advisors LLC purchased a new position in International Business Machines in the 1st quarter valued at $26,000. Finally, Caitlin John LLC purchased a new position in International Business Machines in the 2nd quarter valued at $35,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.27% of the stock is currently owned by company insiders.

International Business Machines Stock Up 0.4%

International Business Machines stock opened at $252.42 on Friday. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The company has a market cap of $237.81 billion, a PE ratio of 22.40, a price-to-earnings-growth ratio of 2.42 and a beta of 0.73. The stock's 50 day moving average price is $232.68 and its 200 day moving average price is $243.63.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.10. The firm had revenue of $17.10 billion during the quarter, compared to analysts' expectations of $16.82 billion. International Business Machines had a return on equity of 35.08% and a net margin of 15.99%. International Business Machines's revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.65 earnings per share. On average, sell-side analysts predict that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be paid a dividend of $1.69 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. International Business Machines's dividend payout ratio is 59.98%.

Wall Street Analyst Weigh In

IBM has been the topic of several recent research reports. HSBC dropped their price objective on shares of International Business Machines from $175.00 to $174.00 in a research note on Friday, July 24th. Evercore reduced their target price on shares of International Business Machines from $310.00 to $250.00 and set an "outperform" rating for the company in a research note on Thursday, July 16th. Sanford C. Bernstein lowered their target price on shares of International Business Machines from $280.00 to $230.00 and set a "market perform" rating on the stock in a report on Thursday, July 23rd. Morgan Stanley boosted their price target on shares of International Business Machines from $238.00 to $240.00 and gave the stock an "equal weight" rating in a research note on Thursday. Finally, UBS Group increased their price target on shares of International Business Machines from $236.00 to $243.00 and gave the stock a "neutral" rating in a report on Thursday. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $266.12.

Key Headlines Impacting International Business Machines

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: IBM delivered a strong third quarter. Revenue increased 4.7% year over year to $17.1 billion, while adjusted earnings of $2.95 per share exceeded expectations near $2.85. Software revenue rose 8% to $7.8 billion, Infrastructure revenue increased 4%, and delayed contracts returned. Reuters IBM earnings article
• Positive Sentiment: Cash generation and margins improved. IBM reported approximately $3.0 billion in free cash flow for the quarter and raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year. The board also declared a quarterly dividend of $1.69 per share. IBM Q3 revenue and cash flow article
• Positive Sentiment: Analysts raised targets after the report. JPMorgan lifted its target to $269, Stifel raised its target to $260 and RBC set a $270 target while reaffirming an outperform rating, signaling confidence that software, Red Hat and infrastructure demand can support further gains.
• Neutral Sentiment: Investors are looking for proof that the rebound can continue. Management said second-quarter softness reflected timing rather than weak demand, but the market remains focused on whether software growth—partly helped by the Confluent acquisition—and Red Hat momentum will persist in the fourth quarter. Fool IBM earnings analysis
• Negative Sentiment: Guidance and AI commentary weighed on sentiment. IBM maintained its full-year revenue-growth outlook rather than raising it, and CEO Arvind Krishna said lower-cost open AI models can deliver much of the performance of frontier models. Investors interpreted that view as a potential constraint on premium AI spending and IBM’s longer-term growth opportunity. Reuters IBM stock reaction article
• Negative Sentiment: Valuation remains a concern. Commentary from Seeking Alpha and Zacks characterized IBM as a high-margin company with comparatively modest growth, consulting challenges, meaningful debt and a premium valuation. That combination limits the margin for execution mistakes and helps explain why the stock has not sustained its post-earnings advance. Seeking Alpha IBM valuation article

International Business Machines Company Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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