Brookstone Capital Management Buys 3,287 Shares of International Business Machines Corporation $IBM

Key Points

• Brookstone Capital Management increased its IBM stake by 12.9% in the third quarter, purchasing 3,287 additional shares and bringing its holdings to 28,755 shares valued at approximately $6.3 million.
• IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, and adjusted EPS of $2.95, beating estimates. Software growth, infrastructure demand and margins improved, while management raised its full-year free-cash-flow outlook.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $266.12. IBM also declared a quarterly dividend of $1.69 per share, equivalent to a 2.7% annualized yield.

Brookstone Capital Management grew its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 12.9% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 28,755 shares of the technology company's stock after acquiring an additional 3,287 shares during the quarter. Brookstone Capital Management's holdings in International Business Machines were worth $6,324,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the company. Harborfront Financial Group LLC bought a new stake in International Business Machines in the second quarter valued at approximately $27,000. Hara Capital LLC acquired a new stake in International Business Machines in the second quarter worth $28,000. Bare Financial Services Inc raised its holdings in International Business Machines by 114.6% in the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after purchasing an additional 55 shares during the period. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines during the first quarter worth $26,000. Finally, Caitlin John LLC bought a new position in shares of International Business Machines during the second quarter worth $35,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

More International Business Machines News

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

• Positive Sentiment: IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded analyst expectations. Software growth accelerated to 9% at constant currency, infrastructure demand improved, and operating pretax margins expanded by 70 basis points. IBM Beats Q3 Earnings Estimates on Software, Infrastructure Growth
• Positive Sentiment: Management raised its full-year free-cash-flow outlook, supported by stronger software performance, Red Hat demand and enterprise AI activity. Transaction-processing revenue also rose 10%, suggesting improving demand in key recurring-revenue businesses. IBM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts raised their earnings estimates or price targets following the results. Erste Group increased its FY2027 EPS forecast to $13.40 from $13.13, while JPMorgan, RBC and Stifel reiterated positive ratings and lifted targets. IBM Analyst Estimates and Ratings
• Neutral Sentiment: IBM’s updated FY2026 revenue guidance of $70.2 billion to $70.9 billion broadly brackets the $70.4 billion consensus estimate. The outlook was not meaningfully raised, leaving investors focused on whether the software rebound can continue.
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, or $6.76 annualized, reinforcing its appeal to income-oriented investors. A separate dividend-stock article highlighted IBM’s decades-long record of payout increases. IBM Declares $1.69 Dividend
• Negative Sentiment: Investors remain concerned that roughly half of the software growth benefited from the Confluent acquisition and that management’s unchanged revenue outlook implies slower growth later in the year. IBM’s comments that lower-cost, open-weight AI models can deliver comparable performance also raised questions about pricing power and AI monetization. Why Isn’t IBM’s Stock Bouncing Back After Strong Earnings Results?
• Negative Sentiment: Some analysts view IBM’s valuation as demanding relative to its modest underlying growth, while slower Consulting performance, debt and uncertainty over the durability of the software rebound could limit further upside.

Insider Activity at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction on 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 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 position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.27% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Bank of America decreased their price target on shares of International Business Machines from $330.00 to $280.00 and set a "buy" rating for the company in a report on Wednesday, July 15th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $270.00 price objective on shares of International Business Machines in a research note on Thursday. Evercore reduced their target price on International Business Machines from $310.00 to $250.00 and set an "outperform" rating on the stock in a report on Thursday, July 16th. Sanford C. Bernstein reduced their target price on International Business Machines from $280.00 to $230.00 and set a "market perform" rating on the stock in a report on Thursday, July 23rd. Finally, Citigroup boosted their target price on International Business Machines from $245.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $266.12.

International Business Machines Stock Performance

Shares of IBM stock opened at $253.69 on Friday. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.74 and a current ratio of 0.85. The company has a market capitalization of $239.01 billion, a P/E ratio of 21.63, a price-to-earnings-growth ratio of 2.43 and a beta of 0.73. The company's 50 day moving average price is $233.06 and its two-hundred day moving average price is $243.70. 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 results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.85 by $0.10. The firm had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The business's revenue was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.65 earnings per share. On average, analysts expect that International Business Machines Corporation will post 12.41 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Tuesday, November 10th. International Business Machines's dividend payout ratio (DPR) is presently 57.63%.

International Business Machines Company Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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.