Diversified Management Inc. Acquires 3,127 Shares of International Business Machines Corporation $IBM

Key Points

• Diversified Management Inc. more than doubled its IBM position in the third quarter, acquiring 3,127 additional shares for a total of 6,154 shares valued at approximately $1.35 million. Institutional investors and hedge funds collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.93, matching analyst estimates, while revenue reached $17.16 billion, up 1.1% year over year but below expectations of $17.46 billion. The company also maintains a quarterly dividend of $1.69, equivalent to a 3.0% annual yield.
• Analyst sentiment remains positive but cautious, with a consensus “Moderate Buy” rating and an average price target of $253.52; however, several firms recently downgraded or lowered their targets. IBM shares opened at $226.70, while an IBM senior vice president sold 25,000 shares.

Diversified Management Inc. increased its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 103.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 6,154 shares of the technology company's stock after purchasing an additional 3,127 shares during the period. Diversified Management Inc.'s holdings in International Business Machines were worth $1,353,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. First Heartland Consultants Inc. boosted its stake in International Business Machines by 8.8% in the 3rd quarter. First Heartland Consultants Inc. now owns 2,585 shares of the technology company's stock worth $568,000 after purchasing an additional 208 shares during the period. Green Alpha Advisors LLC raised its stake in shares of International Business Machines by 1.5% in the 3rd quarter. Green Alpha Advisors LLC now owns 20,232 shares of the technology company's stock valued at $4,450,000 after purchasing an additional 303 shares during the period. Farther Finance Advisors LLC raised its holdings in shares of International Business Machines by 5.6% in the third quarter. Farther Finance Advisors LLC now owns 67,827 shares of the technology company's stock valued at $14,917,000 after purchasing an additional 3,576 shares during the last quarter. CoreCap Advisors LLC grew its position in International Business Machines by 7.6% in the third quarter. CoreCap Advisors LLC now owns 41,308 shares of the technology company's stock valued at $9,085,000 after purchasing an additional 2,916 shares in the last quarter. Finally, Hamlin Capital Management LLC increased its stake in International Business Machines by 24.5% in the 3rd quarter. Hamlin Capital Management LLC now owns 241,311 shares of the technology company's stock valued at $53,072,000 after buying an additional 47,562 shares during the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Stock Up 2.8%

IBM stock opened at $226.70 on Friday. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The business's fifty day moving average price is $232.24 and its two-hundred day moving average price is $244.09. The stock has a market capitalization of $213.58 billion, a price-to-earnings ratio of 20.12, a PEG ratio of 2.10 and a beta of 0.73.

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

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines's payout ratio is 59.98%.

Insiders Place Their Bets

In related news, SVP Robert Thomas sold 25,000 shares of the company's stock in a transaction dated 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 completion of the sale, the senior vice president owned 47,800 shares of the company's stock, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.27% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Oppenheimer downgraded International Business Machines from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 15th. Wolfe Research cut shares of International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. Weiss Ratings lowered shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, September 29th. Robert W. Baird assumed coverage on shares of International Business Machines in a research note on Tuesday, July 21st. They issued a "neutral" rating and a $230.00 target price for the company. Finally, JPMorgan Chase & Co. cut their price objective on 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. Eighteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, International Business Machines currently has a consensus rating of "Moderate Buy" and an average price target of $253.52.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Quantum computing milestone: IBM advanced to Stage C, the final phase of DARPA’s Quantum Benchmarking Initiative. Independent experts will test IBM’s hardware, architecture and systems engineering, providing important third-party validation of its roadmap toward a fault-tolerant quantum computer. IBM is targeting 2029 for that milestone. IBM Advances to Stage C of DARPA Quantum Benchmarking Initiative
• Positive Sentiment: AI and consulting recovery hopes: Coverage argues IBM’s valuation has become more attractive following its recent decline, while a rebound in consulting demand and continued hybrid-cloud and AI adoption could support growth. IBM’s self-hosted “Bob” AI offering also targets customers that require secure, customer-managed infrastructure. IBM’s Valuation is Getting Interesting as AI and Consulting Rebound
• Positive Sentiment: Enterprise partnerships: IBM launched IBM Ready for SAP Solutions, combining its consulting capabilities with SAP cloud ERP to help midsize companies modernize operations and prepare their data for AI. The offering adds a potential channel for consulting and cloud-related revenue. IBM Teams Up with SAP
• Neutral Sentiment: Upcoming earnings: IBM will report third-quarter 2026 results on October 21, giving investors a near-term catalyst to assess whether delayed large deals have begun returning and whether AI and consulting growth are improving. IBM Third-Quarter 2026 Results Announcement
• Negative Sentiment: Execution concerns remain: Analysts highlighted IBM’s recent underperformance and the risk that a slowdown could persist after tens of large deals failed to close on time in the second quarter. Management said customers delayed rather than canceled those deals, but the timing of a recovery remains uncertain. What Happens To IBM Stock If Its Slowdown Lasts?
• Negative Sentiment: Customer attrition in VMware services: 11:11 Systems acquired select IBM VMware Cloud Service Provider enterprise customers. The transaction may modestly pressure IBM’s managed infrastructure and VMware-related business, although the financial impact was not disclosed. 11:11 Systems Acquires Select IBM VMware Cloud Service Provider Enterprise Customers

International Business Machines Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM's portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.

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