Edgestream Partners L.P. Trims Stake in International Business Machines Corporation $IBM

Key Points

• Edgestream Partners sharply reduced its IBM stake by 89.4% in the first quarter, selling 14,485 shares and retaining 1,718 shares valued at approximately $416,000.
• Institutional ownership remains significant at 58.96%, although several smaller investment firms recently initiated new positions in IBM.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $265.40. IBM also reported $2.93 in quarterly EPS, 1.1% year-over-year revenue growth, and a quarterly dividend of $1.69 per share.

Edgestream Partners L.P. lowered its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 89.4% in the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,718 shares of the technology company's stock after selling 14,485 shares during the period. Edgestream Partners L.P.'s holdings in International Business Machines were worth $416,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Family CFO Inc purchased a new position in International Business Machines during the fourth quarter valued at $25,000. Basepoint Wealth LLC purchased a new stake in shares of International Business Machines in the 4th quarter worth about $25,000. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines in the 1st quarter worth about $26,000. Joseph Group Capital Management bought a new position in shares of International Business Machines in the 4th quarter worth about $28,000. Finally, Cornerstone Financial Management LLC purchased a new position in International Business Machines during the 4th quarter valued at about $28,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about International Business Machines

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

• Positive Sentiment: FedRAMP authorization expands IBM’s government opportunity. IBM Maximo Application Suite as a Service for Government received FedRAMP Moderate authorization, enabling federal agencies to use the platform for secure asset, infrastructure and facilities management. The approval could support additional public-sector SaaS adoption and recurring revenue. IBM Maximo Application Suite Achieves FedRAMP Moderate Authorization
• Positive Sentiment: IBM’s sovereign AI strategy in India offers a growth catalyst. A partnership with Sarvam is targeting India’s public sector, while demand for hybrid cloud and AI services could support estimates and help offset slower legacy operations. Can IBM’s Sovereign AI Solutions for India Propel the Stock Higher?
• Positive Sentiment: Valuation and insider activity provide some support. One analysis argues IBM remains inexpensive on fair-value measures, with long-term upside tied to AI services and quantum computing. Recent reported insider purchases and a median analyst price target well above the current trading level may reinforce the bullish case, although institutional activity remains mixed. IBM Stock Still Looks Cheap On Fair Value Despite Weak Checks
• Neutral Sentiment: Quantum computing is a long-term opportunity but creates near-term uncertainty. CEO Arvind Krishna said quantum computing could make a meaningful contribution to revenue and profit by 2028 or 2029. The comments support IBM’s technology narrative, but the timeline leaves limited immediate earnings impact and has also heightened concerns about quantum risks to cryptocurrencies. IBM CEO Predicts Quantum Computing Will Become a Meaningful Business
• Negative Sentiment: Kyndryl’s results highlighted continuing IBM-related revenue declines. IBM’s former infrastructure-services business reported growth in the United States and consulting, but cited persistent IBM-related revenue headwinds. This suggests separation-related and legacy infrastructure weakness may continue to pressure IBM’s growth profile. Kyndryl Q1 2027 Earnings Call Highlights
• Negative Sentiment: Securities-law investigations add headline and litigation risk. Bleichmar Fonti & Auld and Pomerantz announced investigations concerning alleged misrepresentations about an IBM Z product slowdown. These announcements do not establish wrongdoing, but they may weigh on sentiment and increase uncertainty around IBM’s disclosures and legacy mainframe demand. IBM Legal News: Securities Fraud Investigation

Wall Street Analyst Weigh In

Several research firms recently commented on IBM. Barclays dropped their price objective on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating on the stock in a research note on Thursday, July 23rd. Wedbush set a $350.00 target price on shares of International Business Machines in a report on Tuesday, June 2nd. Argus dropped their price target on International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a research report on Thursday, July 16th. Royal Bank Of Canada reissued an "outperform" rating and issued a $270.00 price target on shares of International Business Machines in a research report on Tuesday, July 21st. Finally, Roth Capital restated a "buy" rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Fifteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, International Business Machines has a consensus rating of "Moderate Buy" and an average price target of $265.40.

International Business Machines Trading Up 0.3%

Shares of NYSE:IBM opened at $235.92 on Thursday. The stock's 50-day simple moving average is $260.43 and its two-hundred day simple moving average is $255.93. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a market capitalization of $222.27 billion, a price-to-earnings ratio of 20.93, a PEG ratio of 2.31 and a beta of 0.70. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts' consensus estimates 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 business's quarterly revenue was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.80 earnings per share. Analysts expect that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is presently 59.98%.

International Business Machines Company 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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