7,508 International Business Machines Corporation $IBM Shares Acquired by Tectonic Advisors LLC

Key Points

• Tectonic Advisors increased its IBM position by 12%, acquiring 7,508 shares and bringing its holdings to 69,853 shares valued at approximately $15.4 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly revenue of $17.1 billion, up 4.7% year over year, and adjusted EPS of $2.95, exceeding analyst expectations. Software and infrastructure growth, along with stronger free cash flow guidance, supported the results.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $266.12 price target, while IBM declared a $1.69 quarterly dividend ($6.76 annualized, yielding about 2.7%).

Tectonic Advisors LLC increased its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 12.0% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 69,853 shares of the technology company's stock after buying an additional 7,508 shares during the period. Tectonic Advisors LLC's holdings in International Business Machines were worth $15,363,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in the company. Barrett & Company Inc. raised its holdings in shares of International Business Machines by 1.5% in the 3rd quarter. Barrett & Company Inc. now owns 3,667 shares of the technology company's stock valued at $807,000 after purchasing an additional 54 shares in the last quarter. Farmers & Merchants Investments Inc. increased its holdings in International Business Machines by 0.4% during the third quarter. Farmers & Merchants Investments Inc. now owns 25,926 shares of the technology company's stock valued at $5,702,000 after buying an additional 96 shares during the period. Lighthouse Financial LLC increased its holdings in International Business Machines by 11.4% during the third quarter. Lighthouse Financial LLC now owns 1,961 shares of the technology company's stock valued at $431,000 after buying an additional 200 shares during the period. Wedbush Securities Inc. raised its stake in International Business Machines by 0.3% in the third quarter. Wedbush Securities Inc. now owns 68,467 shares of the technology company's stock worth $15,058,000 after buying an additional 222 shares in the last quarter. Finally, Fifth Third Wealth Advisors LLC raised its stake in International Business Machines by 10.9% in the third quarter. Fifth Third Wealth Advisors LLC now owns 33,726 shares of the technology company's stock worth $7,417,000 after buying an additional 3,319 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

IBM has been the topic of several recent research reports. Daiwa Securities Group dropped their target price on International Business Machines from $247.00 to $217.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 29th. Truist Financial set a $260.00 price target on International Business Machines in a research report on Thursday. Morgan Stanley upped their price objective on International Business Machines from $238.00 to $240.00 and gave the stock an "equal weight" rating in a research note on Thursday. The Goldman Sachs Group reaffirmed a "buy" rating and set a $300.00 price objective on shares of International Business Machines in a research report on Thursday. Finally, Citigroup lifted their target price on International Business Machines from $245.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $266.12.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.27% of the company's stock.

International Business Machines Stock Up 0.6%

Shares of IBM traded up $1.58 during midday trading on Friday, hitting $253.69. 5,887,409 shares of the company's stock traded hands, compared to its average volume of 5,882,694. The company has a current ratio of 0.85, a quick ratio of 0.74 and a debt-to-equity ratio of 1.57. The stock has a market capitalization of $239.01 billion, a price-to-earnings ratio of 21.63, a price-to-earnings-growth ratio of 2.42 and a beta of 0.73. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46. The firm's fifty day moving average is $233.06 and its 200-day moving average is $243.70.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The firm had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. During the same period in the previous year, the business earned $2.65 EPS. The firm's revenue for the quarter was up 4.7% on a year-over-year basis. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 12.34 earnings per share for the current year.

International Business Machines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines's dividend payout ratio (DPR) is currently 57.63%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded analyst expectations. Software growth accelerated to 9% at constant currency, infrastructure demand improved, and operating pretax margins expanded by 70 basis points. IBM Beats Q3 Earnings Estimates on Software, Infrastructure Growth
• Positive Sentiment: Management raised its full-year free-cash-flow outlook, supported by stronger software performance, Red Hat demand and enterprise AI activity. Transaction-processing revenue also rose 10%, suggesting improving demand in key recurring-revenue businesses. IBM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts raised their earnings estimates or price targets following the results. Erste Group increased its FY2027 EPS forecast to $13.40 from $13.13, while JPMorgan, RBC and Stifel reiterated positive ratings and lifted targets. IBM Analyst Estimates and Ratings
• Neutral Sentiment: IBM’s updated FY2026 revenue guidance of $70.2 billion to $70.9 billion broadly brackets the $70.4 billion consensus estimate. The outlook was not meaningfully raised, leaving investors focused on whether the software rebound can continue.
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, or $6.76 annualized, reinforcing its appeal to income-oriented investors. A separate dividend-stock article highlighted IBM’s decades-long record of payout increases. IBM Declares $1.69 Dividend
• Negative Sentiment: Investors remain concerned that roughly half of the software growth benefited from the Confluent acquisition and that management’s unchanged revenue outlook implies slower growth later in the year. IBM’s comments that lower-cost, open-weight AI models can deliver comparable performance also raised questions about pricing power and AI monetization. Why Isn’t IBM’s Stock Bouncing Back After Strong Earnings Results?
• Negative Sentiment: Some analysts view IBM’s valuation as demanding relative to its modest underlying growth, while slower Consulting performance, debt and uncertainty over the durability of the software rebound could limit further upside.

International Business Machines 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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