Dorsey Wright & Associates Sells 14,148 Shares of International Business Machines Corporation $IBM

Key Points

• Dorsey Wright & Associates sharply reduced its IBM stake in the first quarter, selling 14,148 shares and cutting its position by 78.9%.
• IBM’s stock is under pressure after a weak preliminary Q2 update and softer near-term outlook, with shares trading around $212.54, near their 12-month low.
• Despite the selloff, analysts remain mixed-to-positive overall, with a Moderate Buy consensus and a consensus price target of $292.89, while IBM also recently raised its quarterly dividend to $1.69 per share.

Dorsey Wright & Associates cut its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 78.9% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,791 shares of the technology company's stock after selling 14,148 shares during the period. Dorsey Wright & Associates' holdings in International Business Machines were worth $919,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of IBM. Family CFO Inc bought a new stake in shares of International Business Machines during the fourth quarter valued at approximately $25,000. Basepoint Wealth LLC bought a new position in International Business Machines in the fourth quarter worth $25,000. Portus Wealth Advisors LLC bought a new position in International Business Machines in the first quarter worth $26,000. Joseph Group Capital Management purchased a new position in International Business Machines during the fourth quarter valued at $28,000. Finally, Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines during the 4th quarter valued at $28,000. 58.96% of the stock is owned by institutional investors.

Key International Business Machines News

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

• Positive Sentiment: IBM launched new Power server products aimed at automation, app modernization, and local AI inferencing, which could support its enterprise AI push over time.
• Positive Sentiment: JPMorgan kept an overweight rating on IBM even after cutting its price target to $250, indicating Wall Street still sees upside from current levels.
• Positive Sentiment: Some analysts say the stock’s sharp decline may have pushed it into oversold territory, which could attract bargain hunters if sentiment stabilizes.
• Neutral Sentiment: IBM heads into its July 22 earnings report with investors focused on whether the company can validate its AI and cloud momentum after the warning.
• Neutral Sentiment: Analysts at Zacks and others are debating whether the selloff is an opportunity or a sign to wait, reflecting uncertainty rather than a clear fundamental shift.
• Negative Sentiment: IBM’s preliminary Q2 miss and weak near-term outlook are the main reasons the stock is falling, as they suggest slower growth and margin pressure.
• Negative Sentiment: Multiple law firms have announced securities-fraud investigations after the plunge, which can keep negative headlines around the stock.
• Negative Sentiment: Analyst sentiment is turning more cautious, with some estimate reductions and technical warnings reinforcing bearish momentum.

Analysts Set New Price Targets

A number of analysts have recently weighed in on IBM shares. Barclays assumed coverage on shares of International Business Machines in a research report on Monday, June 1st. They issued an "overweight" rating and a $350.00 target price on the stock. Bank of America boosted their price objective on shares of International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a research note on Monday, July 6th. Susquehanna began coverage on shares of International Business Machines in a report on Friday, July 10th. They issued a "neutral" rating and a $303.00 price objective on the stock. Stifel Nicolaus set a $290.00 target price on shares of International Business Machines in a research note on Friday, May 22nd. Finally, Argus decreased their target price on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a research note on Thursday. Fifteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, International Business Machines currently has a consensus rating of "Moderate Buy" and a consensus price target of $292.89.

International Business Machines Trading Down 3.0%

NYSE IBM opened at $212.54 on Friday. International Business Machines Corporation has a 12 month low of $204.44 and a 12 month high of $332.46. The stock has a market cap of $199.76 billion, a P/E ratio of 18.79, a P/E/G ratio of 2.07 and a beta of 0.68. The stock's fifty day moving average price is $263.84 and its 200-day moving average price is $263.58. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly 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 firm had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines's quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.60 EPS. As a group, equities analysts forecast that International Business Machines Corporation will post 12.28 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a dividend of $1.69 per share. The ex-dividend date was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 3.2%. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is 59.77%.

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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