Daiwa Securities Group Inc. Purchases 6,579 Shares of International Business Machines Corporation $IBM

Key Points

• Daiwa Securities Group increased its IBM stake by 2.7% in the second quarter, purchasing 6,579 shares and bringing its holdings to 251,572 shares valued at approximately $70.7 million. Institutional investors own 58.96% of IBM.
• Analysts maintain a generally positive outlook, with 16 Buy, 11 Hold and one Sell rating; the consensus price target is $265.40. However, several firms recently lowered their targets.
• IBM’s latest earnings matched expectations at $2.93 per share, but quarterly revenue of $17.16 billion fell short of consensus estimates. The company declared a $1.69 quarterly dividend, equivalent to a 2.9% yield, while an IBM senior vice president sold 25,000 shares.

Daiwa Securities Group Inc. grew its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 2.7% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 251,572 shares of the technology company's stock after purchasing an additional 6,579 shares during the period. Daiwa Securities Group Inc.'s holdings in International Business Machines were worth $70,745,000 at the end of the most recent reporting period.

Several other institutional investors have also recently modified their holdings of the company. Basepoint Wealth LLC bought a new stake in International Business Machines in the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC bought a new position in International Business Machines during the first quarter valued at approximately $26,000. Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines in the 4th quarter worth approximately $28,000. SWAN Capital LLC purchased a new stake in shares of International Business Machines in the 3rd quarter valued at $28,000. Finally, Bare Financial Services Inc boosted its stake in shares of International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock valued at $29,000 after purchasing an additional 55 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on IBM. The Goldman Sachs Group set a $270.00 target price on shares of International Business Machines in a research report on Thursday, July 23rd. Citigroup reduced their price objective on International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. Needham & Company LLC assumed coverage on International Business Machines in a report on Wednesday, June 3rd. They issued a "buy" rating on the stock. BMO Capital Markets lowered their target price on International Business Machines from $270.00 to $230.00 and set a "market perform" rating for the company in a research note on Thursday, July 23rd. Finally, JPMorgan Chase & Co. reduced their price target on International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. Sixteen 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. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $265.40.

International Business Machines Stock Performance

Shares of IBM opened at $235.78 on Friday. The company has a 50-day simple moving average of $244.57 and a two-hundred day simple moving average of $248.65. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a market capitalization of $222.14 billion, a PE ratio of 20.92, a price-to-earnings-growth ratio of 2.31 and a beta of 0.70. International Business Machines Corporation has a one year low of $199.19 and a one year high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts' consensus estimates of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business's revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.80 EPS. On average, analysts anticipate that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

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

Insider Activity at International Business Machines

In other news, SVP Robert David 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 transaction of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.27% of the company's stock.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

About International Business Machines

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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