Brooks Moore & Associates Inc. Makes New Investment in International Business Machines Corporation $IBM

Key Points

• Brooks Moore & Associates purchased 11,227 IBM shares worth approximately $3.16 million, making IBM 1.4% of its portfolio. Institutional investors collectively own 58.96% of the company.
• IBM’s latest quarter met earnings expectations at $2.93 per share, but revenue of $17.16 billion fell short of the $17.46 billion consensus estimate; shares were trading near $234, down 2.5%.
• IBM continues to expand its AI and quantum-computing profile through initiatives with Lockheed Martin and NASA, while analysts maintain a “Moderate Buy” consensus with an average price target of $265.90. The company also pays a quarterly dividend of $1.69 per share, yielding about 2.9%.

Brooks Moore & Associates Inc. bought a new position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 11,227 shares of the technology company's stock, valued at approximately $3,157,000. International Business Machines accounts for 1.4% of Brooks Moore & Associates Inc.'s portfolio, making the stock its 24th largest position.

Several other institutional investors have also recently made changes to their positions in IBM. Basepoint Wealth LLC purchased a new stake in International Business Machines in the fourth quarter worth $25,000. Portus Wealth Advisors LLC purchased a new position in International Business Machines during the first quarter valued at $26,000. Harborfront Financial Group LLC purchased a new position in International Business Machines during the second quarter valued at $27,000. Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines during the 4th quarter valued at $28,000. Finally, Hara Capital LLC bought a new stake in shares of International Business Machines during the 2nd quarter valued at $28,000. Institutional investors own 58.96% of the company's stock.

International Business Machines News Roundup

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

• Positive Sentiment: IBM and Lockheed Martin announced a quantum innovation hub at ETH Zurich, supported by Switzerland’s defense-procurement offset program. The initiative will deploy Switzerland’s first IBM Quantum System Two at the Swiss National Supercomputing Centre, giving IBM a multi-year platform for quantum-computing research in areas such as sensing and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Positive Sentiment: IBM and NASA released an open-source Lunar Foundation Model trained on extensive lunar-observation data. The model reportedly improves identification of lunar features, including potential ice deposits and craters, highlighting IBM’s AI capabilities and government-research relationships, although the near-term revenue impact is likely limited. IBM and NASA Release Open-Source AI Model
• Positive Sentiment: Market commentary continues to identify IBM as an established-company route to AI and quantum exposure, supported by its hybrid-cloud, enterprise-software and consulting businesses. A Cleveland Clinic, RIKEN and IBM team was also named a finalist for the ACM Gordon Bell Prize for quantum-centric supercomputing research. IBM Team Advances to Gordon Bell Prize Finals
• Neutral Sentiment: A shareholder-rights law firm announced an investigation into IBM related to its previously previewed second-quarter results. Such notices are often solicitation-driven and do not establish wrongdoing, but they can add headline and legal-risk pressure. Law Firm Investigation Report
• Negative Sentiment: IBM’s latest quarterly results showed earnings in line with estimates but revenue below expectations, reinforcing concerns that growth is modest. Analysts also continue to view competing AI-cloud names as having stronger near-term growth and momentum.
• Negative Sentiment: Investors remain focused on IBM’s earlier AI-security investment and whether related partnerships will translate into durable software revenue. Those questions, combined with a premium valuation and broader-market weakness, appear to have outweighed the longer-term quantum and AI announcements. IBM AI Security Investment

International Business Machines Trading Down 2.5%

Shares of IBM stock opened at $234.06 on Friday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a fifty day simple moving average of $237.79 and a two-hundred day simple moving average of $246.38. The firm has a market capitalization of $220.51 billion, a PE ratio of 20.77, a PEG ratio of 2.29 and a beta of 0.71. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week high of $332.46.

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. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the previous year, the business earned $2.80 earnings per share. The business's revenue was up 1.1% on a year-over-year basis. On average, analysts predict that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is presently 59.98%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Citigroup decreased their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a research note on Friday, July 24th. Morgan Stanley decreased their target price on shares of International Business Machines from $293.00 to $190.00 and set an "equal weight" rating for the company in a research note on Thursday, July 23rd. Susquehanna lifted their target price on shares of International Business Machines from $225.00 to $235.00 and gave the company a "neutral" rating in a report on Monday, August 31st. Wolfe Research cut International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd. Finally, Weiss Ratings downgraded International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, June 24th. Sixteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $265.90.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value 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. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.27% of the company's stock.

About International Business Machines

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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