Baird Financial Group Inc. Reduces Position in International Business Machines Corporation $IBM

Key Points

• Baird Financial Group reduced its IBM stake by 3.8%, selling 14,000 shares and retaining 354,617 shares valued at approximately $99.7 million. Institutional investors and hedge funds still own 58.96% of IBM.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $265.16, above IBM’s reported trading price.
• IBM’s latest quarterly results matched earnings expectations at $2.93 per share, but revenue of $17.16 billion fell short of estimates. The company also declared a quarterly dividend of $1.69, equivalent to a 2.8% annual yield.

Baird Financial Group Inc. lowered its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 3.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 354,617 shares of the technology company's stock after selling 14,000 shares during the period. Baird Financial Group Inc.'s holdings in International Business Machines were worth $99,722,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. BlackRock Inc. purchased a new position in International Business Machines in the 2nd quarter worth $21,586,659,000. State Street Corp lifted its position in International Business Machines by 1.0% during the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock worth $16,290,452,000 after acquiring an additional 518,321 shares during the period. Geode Capital Management LLC grew its stake in International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock valued at $6,679,105,000 after purchasing an additional 336,069 shares during the last quarter. Capital World Investors grew its stake in 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 valued at $6,523,720,000 after purchasing an additional 4,976,756 shares during the last quarter. Finally, Bank of America Corp DE increased its holdings in shares of International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock valued at $3,893,669,000 after purchasing an additional 1,049,602 shares during the period. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on IBM. The Goldman Sachs Group set a $270.00 target price on International Business Machines in a report on Thursday, July 23rd. Citigroup cut their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Royal Bank Of Canada reissued an "outperform" rating and set a $270.00 price target on shares of International Business Machines in a research report on Tuesday, July 21st. Piper Sandler raised shares of International Business Machines to an "overweight" rating in a report on Tuesday, June 23rd. Finally, Barclays cut their price objective on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating on the stock in a research note on Thursday, July 23rd. Seventeen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, International Business Machines has an average rating of "Moderate Buy" and an average target price of $265.16.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the company's 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 approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.27% of the company's stock.

International Business Machines Trading Down 4.3%

International Business Machines stock opened at $237.65 on Thursday. The firm has a market cap of $223.90 billion, a PE ratio of 21.09, a P/E/G ratio of 2.37 and a beta of 0.71. International Business Machines Corporation has a 12 month low of $199.19 and a 12 month high of $332.46. The stock's 50 day simple moving average is $233.43 and its two-hundred day simple moving average is $246.71. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same period in the previous year, the firm earned $2.80 EPS. The business's quarterly revenue was up 1.1% on a year-over-year basis. Analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were issued a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.8%. International Business Machines's payout ratio is presently 59.98%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM subsidiary Anderon finalized a $1 billion CHIPS and Science Act award from the U.S. Department of Commerce to accelerate development of a U.S.-based, pure-play quantum wafer foundry. The funding strengthens IBM’s position in quantum infrastructure and could create longer-term strategic opportunities, although it is primarily government support for research and capacity expansion rather than immediate revenue. Anderon finalizes $1 billion CHIPS award
• Positive Sentiment: Analysts’ reported price targets remain above the current trading level, and coverage highlighted potential growth from IBM’s quantum infrastructure strategy and AI deployments. A Turkish credit-bureau AI deal also reportedly involves production-scale processing of 23 million transactions daily, though IBM did not disclose its contract value.
• Neutral Sentiment: The quantum award is strategically important but may require substantial execution, investment and time before materially affecting IBM’s earnings. The opportunity is viewed more as a long-term infrastructure platform than an immediate financial catalyst.
• Negative Sentiment: Despite the government announcement, investors appear to be taking profits after IBM’s recent advance. Technical commentary pointed to resistance near the $239–$241 area, while the retreat below that zone weakened the short-term breakout thesis. Why IBM stock is falling
• Negative Sentiment: IBM’s latest reported quarter showed earnings in line with estimates but revenue below expectations, reinforcing concerns that the company’s near-term growth remains modest. The stock’s decline while the broader technology market rallied suggests valuation and profit-taking pressures outweighed the quantum news.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.

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