Diversified Management Inc. Has $851,000 Stock Position in International Business Machines Corporation $IBM

Key Points

• Diversified Management Inc. cut its IBM position by 46.9% in the second quarter, selling 2,674 shares and retaining 3,027 shares valued at approximately $851,000. Institutional investors and hedge funds collectively own 58.96% of IBM.
• IBM’s latest quarter showed earnings in line with estimates at $2.93 per share, while revenue rose 1.1% year over year to $17.16 billion but fell short of expectations. The company also declared a quarterly dividend of $1.69, equivalent to a 2.8% annualized yield.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $265.40, though targets vary widely. IBM’s planned $240 million AI infrastructure deal with Together AI offers a potential growth catalyst, while debt levels and concerns about AI spending returns remain risks.

Diversified Management Inc. lowered its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 46.9% in the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 3,027 shares of the technology company's stock after selling 2,674 shares during the period. Diversified Management Inc.'s holdings in International Business Machines were worth $851,000 as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. Handelsbanken Fonder AB lifted its holdings in International Business Machines by 86.7% during the 2nd quarter. Handelsbanken Fonder AB now owns 638,216 shares of the technology company's stock worth $179,473,000 after buying an additional 296,372 shares during the period. Carolina Wealth Advisors LLC raised its position in shares of International Business Machines by 1.0% during the second quarter. Carolina Wealth Advisors LLC now owns 8,853 shares of the technology company's stock worth $2,490,000 after acquiring an additional 84 shares during the last quarter. Marquette Asset Management LLC lifted its stake in shares of International Business Machines by 12.7% in the second quarter. Marquette Asset Management LLC now owns 889 shares of the technology company's stock worth $250,000 after acquiring an additional 100 shares during the period. Sage Capital Advisors llc bought a new stake in International Business Machines in the second quarter valued at approximately $5,366,000. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors raised its holdings in International Business Machines by 3.7% during the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 9,141 shares of the technology company's stock worth $2,571,000 after purchasing an additional 328 shares during the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: AI infrastructure deal provides the clearest near-term catalyst. IBM signed a multi-year agreement valued at approximately $240 million with Together AI to build a large-scale open-source AI inference cluster on IBM Cloud. The system will use NVIDIA HGX B300 platforms and Spectrum-X networking, with availability expected in the first quarter of 2027. The contract supports IBM’s effort to turn AI demand into cloud revenue and strengthens its position in the growing inference market. Reuters article
• Positive Sentiment: IBM is broadening its partner-led sales reach. TD SYNNEX plans to expand IBM distribution into 20 additional countries across Europe, Asia-Pacific, and Latin America. The move could improve access to IBM’s cloud, software, and infrastructure offerings, although the direct financial impact is not yet quantified. TD SYNNEX expands IBM distribution article
• Neutral Sentiment: IBM raised CAD 997.11 million through fixed-rate notes. The 4.750% notes mature in 2034, giving investors updated information about IBM’s funding costs and capital structure. The proceeds provide liquidity, but the additional debt and interest expense are a consideration given the company’s existing leverage. IBM funding and stock attention article
• Neutral Sentiment: Quantum computing remains a longer-term growth narrative. Commentary citing IBM’s CEO suggests the technology could begin making a measurable contribution to results in coming years, but it is not an immediate earnings driver. IBM quantum computing outlook article
• Negative Sentiment: Risk concerns remain. A law firm announced an investigation into a sharp prior decline in IBM shares, while separate commentary raised concerns about whether massive industrywide AI infrastructure spending can generate adequate returns. These developments may limit enthusiasm despite the new AI contract. IBM securities investigation article

Analysts Set New Price Targets

A number of equities research analysts have recently commented on IBM shares. Roth Capital reaffirmed a "buy" rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Bank of America increased their price target on International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a report on Monday, July 6th. Morgan Stanley lowered their price objective on International Business Machines from $293.00 to $190.00 and set an "equal weight" rating for the company in a research report on Thursday, July 23rd. Robert W. Baird started coverage on International Business Machines in a research report on Tuesday, July 21st. They set a "neutral" rating and a $230.00 target price on the stock. Finally, BMO Capital Markets decreased 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. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, International Business Machines currently has an average rating of "Moderate Buy" and an average target price of $265.40.

International Business Machines Stock Up 1.0%

Shares of NYSE IBM opened at $238.62 on Wednesday. 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 $224.81 billion, a PE ratio of 21.17, a P/E/G ratio of 2.32 and a beta of 0.70. The company's fifty day simple moving average is $255.09 and its 200 day simple moving average is $254.13. International Business Machines Corporation has a 12-month low of $199.19 and a 12-month high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm 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 firm posted $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 forecast that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's payout ratio is presently 59.98%.

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.

Want to see what other hedge funds are holding IBM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for International Business Machines Corporation (NYSE:IBM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source