Del Sette Capital Management LLC Decreases Stock Holdings in International Business Machines Corporation $IBM

Key Points

• Del Sette Capital Management cut its IBM position by 92.3% in the second quarter, selling 10,395 shares and retaining 870 shares worth approximately $245,000. Hedge funds and other institutional investors own 58.96% of IBM.
• IBM’s latest quarterly revenue of $17.16 billion fell short of the $17.46 billion analyst expectation, although adjusted earnings of $2.93 per share matched consensus and revenue rose 1.1% year over year.
• IBM declared a quarterly dividend of $1.69, equivalent to a 2.9% yield, while analysts maintain a “Moderate Buy” consensus with an average price target of $265.40. The company’s AI, mainframe and quantum-computing initiatives support its outlook, but execution and recent legal scrutiny remain risks.

Del Sette Capital Management LLC trimmed its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 92.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 870 shares of the technology company's stock after selling 10,395 shares during the period. Del Sette Capital Management LLC's holdings in International Business Machines were worth $245,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of IBM. Basepoint Wealth LLC bought a new position in International Business Machines during the 4th quarter valued at approximately $25,000. 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 position in shares of International Business Machines during the third quarter valued at approximately $28,000. Bare Financial Services Inc increased its stake in shares of International Business Machines by 114.6% during the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock valued at $29,000 after buying an additional 55 shares during the period. Finally, Portus Wealth Advisors LLC bought a new position in shares of International Business Machines during the first quarter valued at approximately $26,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines News Summary

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.

International Business Machines Trading Down 1.3%

Shares of NYSE IBM opened at $235.78 on Friday. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46. 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 50-day moving average of $244.57 and a 200 day moving average of $248.65. The stock has a market cap of $222.14 billion, a P/E ratio of 20.92, a price-to-earnings-growth ratio of 2.31 and a beta of 0.70.

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

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. International Business Machines's dividend payout ratio is presently 59.98%.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Stifel Nicolaus dropped their price target on International Business Machines from $290.00 to $235.00 and set a "buy" rating for the company in a research note on Monday, July 20th. Bank of America upped their price objective on shares of International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a report on Monday, July 6th. Susquehanna cut their target price on shares of International Business Machines from $303.00 to $225.00 and set a "neutral" rating on the stock in a research note on Friday, July 24th. Craig Hallum started coverage on shares of International Business Machines in a research report on Wednesday, August 19th. They set a "buy" rating on the stock. Finally, Roth Capital reissued a "buy" rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, International Business Machines currently has a consensus rating of "Moderate Buy" and an average target price of $265.40.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert David Thomas sold 25,000 shares of International Business Machines stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.27% of the stock is currently owned by company insiders.

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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