Avity Investment Management Inc. Increases Holdings in International Business Machines Corporation $IBM

Key Points

• Avity Investment Management increased its IBM holdings by 10.6% in the second quarter, adding 5,017 shares for a total position of 52,271 shares valued at approximately $14.7 million. Institutional investors collectively own 58.96% of IBM’s stock.
• Analyst sentiment remains favorable but mixed, with IBM holding a consensus “Moderate Buy” rating and an average price target of $265.40. Recent recommendations ranged from HSBC’s “reduce” rating to Bank of America’s “buy” rating.
• IBM’s latest quarterly results met earnings expectations at $2.93 per share, while revenue of $17.16 billion fell short of estimates but increased 1.1% year over year. The company declared a quarterly dividend of $1.69 per share, equivalent to a 2.9% annualized yield.

Avity Investment Management Inc. raised its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 10.6% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 52,271 shares of the technology company's stock after purchasing an additional 5,017 shares during the period. Avity Investment Management Inc.'s holdings in International Business Machines were worth $14,699,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Family CFO Inc purchased a new position in International Business Machines during the 4th quarter valued at $25,000. Basepoint Wealth LLC bought a new stake in shares of International Business Machines during the 4th quarter valued at about $25,000. Portus Wealth Advisors LLC purchased a new position in shares of International Business Machines during the first quarter valued at about $26,000. Joseph Group Capital Management purchased a new position in shares of International Business Machines during the fourth quarter valued at about $28,000. Finally, Cornerstone Financial Management LLC bought a new position in International Business Machines in the fourth quarter worth about $28,000. Hedge funds and other institutional investors own 58.96% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on IBM. JPMorgan Chase & Co. cut their price objective on International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. Wolfe Research lowered International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd. Bank of America raised their target price on International Business Machines from $315.00 to $330.00 and gave the company a "buy" rating in a research note on Monday, July 6th. KeyCorp lowered International Business Machines to a "sector weight" rating in a research report on Tuesday, June 23rd. Finally, HSBC set a $175.00 price target on International Business Machines and gave the stock a "reduce" rating in a research note on Thursday, July 16th. Fifteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $265.40.

International Business Machines Price Performance

IBM opened at $237.08 on Friday. The firm has a market cap of $223.36 billion, a PE ratio of 21.04, a P/E/G ratio of 2.33 and a beta of 0.70. The stock has a 50-day moving average price of $258.59 and a 200-day moving average price of $255.29. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46. 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 (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. The company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines's revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.80 EPS. Sell-side analysts predict that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines's dividend payout ratio is presently 59.98%.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM previewed Apptio AI Value & ROI, a tool designed to track AI spending—including token costs—and connect it with business outcomes. The offering could help enterprises justify AI investments and strengthen IBM’s position in AI governance and FinOps software. IBM previews Apptio AI Value & ROI to track AI spend and results
• Positive Sentiment: IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools in regulated environments. The approval may expand IBM’s government-cloud opportunity and provide a credibility boost for its software business. IBM Secures FedRAMP Moderate Authorization For Maximo
• Neutral Sentiment: Recent commentary describes IBM as a high-risk, mixed setup: software growth is strong, but declining mainframe sales and the aftermath of the earnings-related selloff could limit the rebound. Investors are weighing whether the recovery reflects value or unresolved operational risk. IBM’s Post-Collapse Rebound: A Complex Risk Reward Profile
• Negative Sentiment: Hagens Berman, Bleichmar Fonti & Auld, and Pomerantz announced investigations related to IBM’s reported financial disclosures and the severe post-earnings decline. These announcements do not establish wrongdoing, but they add legal uncertainty, reputational risk and potential shareholder-claim exposure. IBM Securities Fraud Investigation is Ongoing Pomerantz IBM investor investigation
• Negative Sentiment: Kyndryl reported ongoing IBM-related revenue declines, underscoring potential headwinds in legacy infrastructure and services. That weakness contrasts with IBM’s software momentum and may reinforce concerns about the company’s transition away from older businesses. Kyndryl earnings call highlights

About International Business Machines

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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