Czech National Bank Raises Holdings in International Business Machines Corporation $IBM

Key Points

• Czech National Bank increased its IBM stake by 5.1% in the second quarter to 267,527 shares valued at approximately $75.2 million. Institutional investors collectively own 58.96% of the company.
• IBM’s latest quarterly results matched analysts’ expectations at $2.93 earnings per share, while revenue rose 1.1% year over year to $17.16 billion but fell short of consensus estimates.
• IBM maintains a quarterly dividend of $1.69 per share, equal to an annualized $6.76 payout and a 2.9% yield. Analysts hold a “Moderate Buy” consensus rating with an average price target of $265.40, despite concerns over legacy infrastructure weakness and legal investigations tied to its IBM Z business.

Czech National Bank lifted its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 5.1% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 267,527 shares of the technology company's stock after purchasing an additional 12,956 shares during the quarter. Czech National Bank's holdings in International Business Machines were worth $75,231,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of International Business Machines during the fourth quarter valued at $2,446,429,000. Capital World Investors raised its stake in International Business Machines by 29.2% in the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock worth $6,523,720,000 after acquiring an additional 4,976,756 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in International Business Machines by 83.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company's stock worth $1,663,847,000 after acquiring an additional 2,553,552 shares during the period. Corient Private Wealth LLC grew its stake in International Business Machines by 359.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company's stock valued at $561,814,000 after purchasing an additional 1,484,026 shares during the last quarter. Finally, Vanguard Group Inc. grew its stake in International Business Machines by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock valued at $28,796,390,000 after purchasing an additional 1,439,824 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines Stock Down 1.0%

International Business Machines stock opened at $233.52 on Friday. The business's 50-day moving average price is $259.82 and its 200 day moving average price is $255.42. 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 firm has a market cap of $220.01 billion, a price-to-earnings ratio of 20.72, a price-to-earnings-growth ratio of 2.31 and a beta of 0.70. 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, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The company had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the previous year, the company posted $2.80 earnings per share. International Business Machines's revenue for the quarter was up 1.1% on a year-over-year basis. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 12.34 earnings per share for the current year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a dividend of $1.69 per share. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines's dividend payout ratio (DPR) is 59.98%.

Key International Business Machines News

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

• Positive Sentiment: IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools in regulated environments. The approval could expand IBM’s government software pipeline and reinforce its position in secure hybrid cloud services. IBM Maximo Application Suite Achieves FedRAMP Moderate Authorization
• Neutral Sentiment: IBM CEO Arvind Krishna said quantum computing could begin contributing meaningfully to revenue and profit by 2028 or 2029. The forecast supports IBM’s long-term technology narrative, but the benefits remain several years away and are unlikely to offset current mainframe concerns. IBM’s Arvind Krishna Predicts Quantum Computing Will Become a Meaningful Business by 2028
• Neutral Sentiment: IBM reportedly transferred nearly 1,000 blockchain patents to Circle, which may provide incremental monetization and demonstrate the value of IBM’s intellectual property portfolio. However, the transaction is not presented as a major near-term earnings catalyst. Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure Race
• Negative Sentiment: Hagens Berman and Bleichmar Fonti & Auld announced investigations into potential securities-law violations tied to alleged misrepresentations concerning the IBM Z product slowdown. The investigations follow the approximately 25% one-day decline reported after IBM’s July 14 preview of weak second-quarter results, adding legal and reputational overhang. The announcements are allegations, not findings of wrongdoing. IBM $68 Billion Wipeout Amid Z Shortfall Triggers Investigation
• Negative Sentiment: Kyndryl’s earnings commentary cited persistent IBM-related revenue declines, suggesting continued pressure in IBM’s legacy infrastructure and services ecosystem. This reinforces investor concerns that AI-led growth may not yet be fully compensating for weakness in traditional businesses. Kyndryl Earnings Call Highlights

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on IBM. KeyCorp cut International Business Machines to a "sector weight" rating in a research note on Tuesday, June 23rd. Wolfe Research downgraded shares of International Business Machines to a "peer perform" rating in a report on Tuesday, June 23rd. JPMorgan Chase & Co. reduced their price target on shares of International Business Machines from $291.00 to $250.00 and set an "overweight" rating for the company in a research report on Friday, July 17th. Barclays decreased their price objective on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating for the company in a research note on Thursday, July 23rd. Finally, Stifel Nicolaus cut their price objective on shares of International Business Machines from $290.00 to $235.00 and set a "buy" rating on the stock in a research note on Monday, July 20th. Fifteen 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 company. Based on data from MarketBeat.com, International Business Machines currently has an average rating of "Moderate Buy" and a consensus price target of $265.40.

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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