Dearborn Partners LLC Reduces Holdings in International Business Machines Corporation $IBM

Key Points

• Dearborn Partners LLC reduced its IBM holdings by 6.1% in the fourth quarter, selling 3,138 shares and leaving it with 48,727 shares valued at about $14.4 million.
• IBM reported better-than-expected first-quarter results, with EPS of $1.91 on revenue of $15.92 billion, both ahead of analyst estimates and up 9.5% year over year.
• The company also raised its quarterly dividend to $1.69 per share, while Wall Street sentiment remains generally positive with a consensus Moderate Buy rating and an average price target of $304.17.

Dearborn Partners LLC trimmed its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 6.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 48,727 shares of the technology company's stock after selling 3,138 shares during the period. Dearborn Partners LLC's holdings in International Business Machines were worth $14,433,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of IBM. Brighton Jones LLC lifted its position in shares of International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock worth $4,619,000 after purchasing an additional 2,323 shares during the period. Sivia Capital Partners LLC lifted its position in shares of International Business Machines by 10.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after purchasing an additional 186 shares during the period. Jump Financial LLC purchased a new stake in shares of International Business Machines in the 2nd quarter worth about $211,000. Ieq Capital LLC lifted its position in shares of International Business Machines by 2.2% in the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock worth $11,383,000 after purchasing an additional 843 shares during the period. Finally, Vivaldi Capital Management LP lifted its position in shares of International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock worth $300,000 after purchasing an additional 106 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Stock Down 5.5%

Shares of International Business Machines stock opened at $285.06 on Friday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The stock has a market capitalization of $267.93 billion, a PE ratio of 25.20, a price-to-earnings-growth ratio of 2.95 and a beta of 0.67. International Business Machines Corporation has a 52-week low of $212.34 and a 52-week high of $332.46. The company has a 50-day simple moving average of $246.48 and a two-hundred day simple moving average of $270.94.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.10. The business had revenue of $15.92 billion during 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%. The business's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.60 earnings per share. On average, analysts anticipate that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be given a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a dividend yield of 2.4%. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. International Business Machines's payout ratio is 59.77%.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Wedbush reportedly reset its IBM price target, citing stronger AI momentum and continued demand for IBM’s enterprise software and consulting offerings.
• Positive Sentiment: IBM’s new strategic partnership with Google Cloud to scale enterprise AI adoption is being seen as a meaningful growth driver, with the deal aimed at helping customers modernize systems and bring AI into production faster. IBM and Google Cloud Announce Strategic Partnership to Scale AI with Human Expertise and AI‑Powered Delivery
• Positive Sentiment: Several market commentary pieces highlighted IBM’s large quantum-computing investment as a long-term catalyst, with some analysts saying the company is strengthening its position in an emerging high-growth market. IBM Stock’s $10 Billion Quantum Catalyst Is Here
• Positive Sentiment: Citi also pointed to IBM’s growing role in quantum computing, reinforcing the view that the company’s heavy spending could secure a leadership position in a market with major future upside.
• Neutral Sentiment: IBM shares were included in broader market coverage of stocks making big moves, reflecting elevated trading interest but not adding a clearly new company-specific catalyst.
• Negative Sentiment: A former IBM cybersecurity executive accused the company of covering up multiple foreign-government data breaches over the past decade, raising potential reputational and legal risks. Former cyber executive turned whistleblower accuses IBM of covering up several data breaches
• Negative Sentiment: Another report repeated allegations that IBM and AT&T concealed foreign hacks, which could weigh on investor sentiment if the claims gain traction.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Citigroup lifted their price target on shares of International Business Machines from $285.00 to $375.00 and gave the company a "buy" rating in a research report on Tuesday. Roth Mkm reissued a "buy" rating on shares of International Business Machines in a research report on Wednesday. BMO Capital Markets lowered their price target on shares of International Business Machines from $290.00 to $270.00 and set a "market perform" rating for the company in a research report on Thursday, April 23rd. UBS Group raised shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target for the company in a research report on Wednesday, February 25th. Finally, Weiss Ratings cut shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $304.17.

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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