Adams Diversified Equity Fund Inc. Sells 26,000 Shares of International Business Machines Corporation $IBM

Key Points

• Adams Diversified Equity Fund cut its IBM stake by 29.6% in the first quarter, selling 26,000 shares and leaving it with 61,900 shares worth about $15.0 million.
• IBM is getting attention for a new sub-1-nanometer “nanostack” chip architecture aimed at advancing AI computing, which analysts say could strengthen its long-term hardware strategy. Some reports note the technology is still a research prototype and may take years to reach production.
• IBM also recently beat quarterly earnings expectations and raised its dividend to $1.69 per share, while analysts currently maintain a Moderate Buy consensus with an average price target of $306.94.

Adams Diversified Equity Fund Inc. reduced its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 29.6% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 61,900 shares of the technology company's stock after selling 26,000 shares during the period. Adams Diversified Equity Fund Inc.'s holdings in International Business Machines were worth $15,004,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Norges Bank bought a new position in International Business Machines during the fourth quarter worth $2,446,429,000. Capital World Investors boosted its holdings in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock worth $6,523,720,000 after buying an additional 4,976,756 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in shares of International Business Machines by 83.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company's stock worth $1,663,847,000 after buying an additional 2,553,552 shares during the period. Corient Private Wealth LLC grew its stake in International Business Machines by 359.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company's stock valued at $561,814,000 after buying an additional 1,484,026 shares during the last quarter. Finally, Vanguard Group Inc. raised its holdings in International Business Machines by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock valued at $28,796,390,000 after acquiring an additional 1,439,824 shares during the period. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines News Summary

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

• Positive Sentiment: IBM introduced a new “nanostack” chip architecture at the 0.7 nm node, with roughly 100 billion transistors on a fingernail-sized chip. Analysts at Wedbush said the development supports IBM’s long-term hardware ambitions as AI computing demand rises. IBM quantum foundry plan adds to long-term hardware strategy: Wedbush
• Positive Sentiment: Multiple reports said the announcement could extend Moore’s Law and improve chip performance and energy efficiency, reinforcing IBM’s relevance in next-generation AI infrastructure. IBM unveils tech for chip smaller than 1 nanometer in AI computing push
• Positive Sentiment: Investor sentiment also improved after commentary that the breakthrough positions IBM as a possible long-term winner in AI hardware, helping fuel the stock’s recent momentum. IBM Unveils Prototype for Sub-1-Nanometer AI Chip. Why It Matters.
• Neutral Sentiment: Some coverage noted the technology is still a research prototype and may not reach production for years, so the commercial impact is not immediate. IBM (IBM) Stock Surges 6% on Revolutionary Sub-Nanometer Chip Technology
• Negative Sentiment: One article argued IBM still faces skepticism from investors over execution and longer-term growth, even after the chip news, which could temper enthusiasm. 3 Reasons to Avoid IBM and 1 Stock to Buy Instead

Analyst Upgrades and Downgrades

IBM has been the topic of a number of research reports. Morgan Stanley raised International Business Machines from an "equal weight" rating to an "overweight" rating in a report on Tuesday. Weiss Ratings downgraded International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday. HSBC raised shares of International Business Machines from a "reduce" rating to a "hold" rating and boosted their target price for the company from $218.00 to $231.00 in a research report on Tuesday, April 28th. Barclays initiated coverage on shares of International Business Machines in a research note on Monday, June 1st. They issued an "overweight" rating and a $350.00 price target on the stock. Finally, Piper Sandler raised shares of International Business Machines to an "overweight" rating in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $306.94.

International Business Machines Price Performance

International Business Machines stock opened at $271.36 on Friday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. International Business Machines Corporation has a 52 week low of $212.34 and a 52 week high of $332.46. The stock has a market capitalization of $255.05 billion, a P/E ratio of 23.99, a price-to-earnings-growth ratio of 2.81 and a beta of 0.67. The stock has a fifty day moving average of $253.83 and a 200-day moving average of $267.26.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines's revenue was up 9.5% compared to the same quarter last year. During the same period last year, the firm posted $1.60 earnings per share. On average, sell-side analysts expect that International Business Machines Corporation will post 12.39 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were issued a dividend of $1.69 per share. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.5%. International Business Machines's payout ratio is presently 59.77%.

International Business Machines Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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