BlackRock Inc. Makes New $21.59 Billion Investment in International Business Machines Corporation $IBM

Key Points

• BlackRock acquired 76.8 million IBM shares worth approximately $21.59 billion, giving it an 8.15% stake; institutional investors collectively own 58.96% of the company.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $265.90, although several firms recently reduced their targets.
• IBM met quarterly EPS expectations at $2.93, while revenue rose 1.1% year over year to $17.16 billion. The company also declared a $1.69 quarterly dividend, equivalent to a 2.9% yield.

BlackRock Inc. purchased a new stake in International Business Machines Corporation (NYSE:IBM - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 76,763,481 shares of the technology company's stock, valued at approximately $21,586,659,000. BlackRock Inc. owned approximately 8.15% of International Business Machines at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Brighton Jones LLC increased its stake in shares of International Business Machines by 12.4% in the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after purchasing an additional 2,323 shares during the period. Sivia Capital Partners LLC boosted its position in International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after acquiring an additional 186 shares during the period. Jump Financial LLC acquired a new position in shares of International Business Machines during the second quarter valued at $211,000. Ieq Capital LLC raised its stake in shares of International Business Machines by 2.2% during the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after purchasing an additional 843 shares in the last quarter. Finally, Vivaldi Capital Management LP raised its stake in shares of International Business Machines by 11.6% during the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after purchasing an additional 106 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Jefferies Financial Group lowered their price objective on shares of International Business Machines from $320.00 to $260.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $270.00 price target on shares of International Business Machines in a research note on Tuesday, July 21st. Barclays lowered their price target on International Business Machines from $288.00 to $262.00 and set an "overweight" rating on the stock in a research report on Thursday, July 23rd. Stifel Nicolaus decreased their target price on International Business Machines from $290.00 to $235.00 and set a "buy" rating for the company in a research note on Monday, July 20th. Finally, The Goldman Sachs Group set a $270.00 target price on International Business Machines in a report on Thursday, July 23rd. Sixteen equities research 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 MarketBeat.com, International Business Machines has a consensus rating of "Moderate Buy" and a consensus price target of $265.90.

International Business Machines Trading Up 0.0%

International Business Machines stock opened at $231.43 on Thursday. International Business Machines Corporation has a 12 month low of $199.19 and a 12 month high of $332.46. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The stock has a market cap of $218.04 billion, a P/E ratio of 20.54, a P/E/G ratio of 2.21 and a beta of 0.71. The company's fifty day simple moving average is $242.89 and its 200-day simple moving average is $247.41.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting 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 company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the prior year, the business posted $2.80 EPS. International Business Machines's quarterly revenue was up 1.1% on a year-over-year basis. As a group, sell-side analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

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

Insider Activity

In other International Business Machines news, SVP Robert David 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 transaction of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.27% of the company's stock.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM Ventures expands quantum-computing exposure: IBM Ventures invested in BQP, a physics-acceleration company whose bookings have reportedly increased eightfold. The investment supports IBM’s positioning in quantum and advanced-computing infrastructure, although the deal is unlikely to materially affect near-term earnings. IBM Ventures backs BQP
• Positive Sentiment: AI and quantum themes continue to support the investment case: Analysts highlighted IBM among large technology companies that could benefit from quantum-computing adoption through cloud, software and infrastructure offerings. Retail-investor coverage also identified IBM as a favored long-term AI stock, particularly because of its enterprise focus and hybrid-cloud capabilities. Quantum boom investment ideas
• Neutral Sentiment: Dividend remains a key attraction: IBM is highlighted as a major technology dividend payer, with a quarterly distribution of $1.69 per share. The income profile may appeal to defensive investors, though dividend comparisons alone do not resolve concerns about valuation or growth. Cisco versus IBM dividend comparison
• Neutral Sentiment: IBM is promoting responsible AI adoption: A new study found that AI adoption in U.S. K-12 schools is outpacing institutional readiness, prompting IBM to launch a fellowship for education leaders. The initiative may strengthen IBM’s brand and future relationships but has limited immediate financial impact. IBM K-12 AI study
• Negative Sentiment: Securities-fraud investigation adds headline risk: Bleichmar Fonti & Auld said it is investigating whether IBM made potentially misleading statements about the pace of business deals. The announcement is an allegation, not a finding of wrongdoing, but it could increase legal uncertainty and investor caution. IBM securities investigation
• Negative Sentiment: Broader concerns remain over IBM’s growth outlook: Recent analysis cited AI-driven disruption to legacy services, pricing pressure and reduced estimates as reasons for IBM’s year-to-date weakness, despite support from hybrid cloud and watsonx. Technical coverage also identified resistance near $239, suggesting limited upside until momentum improves. IBM stock outlook

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.

Want to see what other hedge funds are holding IBM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for International Business Machines Corporation (NYSE:IBM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source