Cullinan Associates Inc. Trims Stock Holdings in International Business Machines Corporation $IBM

Key Points

• Cullinan Associates Inc. cut its IBM stake by 18.9% in the first quarter, selling 22,461 shares and leaving it with 96,645 shares valued at about $23.4 million.
• Wall Street remains broadly positive on IBM, with 16 Buy ratings and 9 Hold ratings and a consensus target price of $306.28, even as some firms recently trimmed their views.
• IBM posted solid quarterly results, beating estimates on both earnings per share and revenue, and also raised its quarterly dividend to $1.69 per share, lifting the annualized yield to about 2.3%.

Cullinan Associates Inc. reduced its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 18.9% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 96,645 shares of the technology company's stock after selling 22,461 shares during the period. International Business Machines accounts for 1.9% of Cullinan Associates Inc.'s portfolio, making the stock its 12th biggest holding. Cullinan Associates Inc.'s holdings in International Business Machines were worth $23,426,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently made changes to their positions in the stock. Basepoint Wealth LLC purchased a new stake in shares of International Business Machines in the fourth quarter worth $25,000. Family CFO Inc purchased a new position in shares of International Business Machines during the 4th quarter valued at $25,000. Joseph Group Capital Management purchased a new position in shares of International Business Machines during the 4th quarter valued at $28,000. Cornerstone Financial Management LLC bought a new position in International Business Machines in the 4th quarter worth $28,000. Finally, SWAN Capital LLC purchased a new position in shares of International Business Machines in the third quarter valued at about $28,000. 58.96% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on IBM. HSBC upgraded International Business Machines from a "reduce" rating to a "hold" rating and increased their target price for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. Weiss Ratings cut shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 24th. Wolfe Research lowered shares of International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd. Roth Capital reiterated a "buy" rating on shares of International Business Machines in a report on Wednesday, June 3rd. Finally, Royal Bank Of Canada reissued an "outperform" rating on shares of International Business Machines in a report on Tuesday, June 23rd. Sixteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, International Business Machines presently has an average rating of "Moderate Buy" and a consensus target price of $306.28.

Key International Business Machines News

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

• Positive Sentiment: IBM continues to get credit for growth in quantum computing and AI, including new enterprise software tools and multi-agent capabilities that could support future revenue. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
• Positive Sentiment: The stock still has implied upside to Susquehanna’s target, suggesting analysts see value if IBM can convert its AI and quantum strengths into stronger earnings growth. Susquehanna coverage note
• Neutral Sentiment: IBM’s latest product updates for its Bob platform and other AI tools reinforce its enterprise strategy, but these launches are not yet enough to change the near-term investment view. IBM Upgrades Bob With Multi-Agent AI
• Negative Sentiment: Starbucks’ move to build internal AI tools to replace Microsoft and IBM software highlights a potential risk to IBM’s enterprise software revenue if other large customers follow suit. There Are So Many Reasons to Like IBM Right Now—Just Not Enough to Buy the Stock
• Negative Sentiment: Analysts remain cautious heading into IBM’s upcoming Q2 earnings, with concerns that AI could pressure parts of the consulting and mainframe business even as newer growth areas expand. Susquehanna Praises IBM’s Quantum and AI Growth but Rates the Stock a Hold – Here’s Why

International Business Machines Price Performance

Shares of NYSE IBM traded down $7.45 during midday trading on Friday, reaching $287.85. 3,633,419 shares of the stock traded hands, compared to its average volume of 7,627,529. The company's 50 day moving average is $263.77 and its 200 day moving average is $266.17. International Business Machines Corporation has a one year low of $212.34 and a one year high of $332.46. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The stock has a market capitalization of $270.55 billion, a PE ratio of 25.45, a P/E/G ratio of 2.78 and a beta of 0.68.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping the consensus estimate of $1.81 by $0.10. The company had revenue of $15.92 billion for the quarter, compared to analysts' expectations of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines's quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.60 earnings per share. On average, equities research analysts anticipate that International Business Machines Corporation will post 12.45 earnings per share for the current year.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were given a dividend of $1.69 per share. The ex-dividend date was Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.3%. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio is currently 59.77%.

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.

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