Envestnet Asset Management Inc. Trims Position in International Business Machines Corporation $IBM

Key Points

• Envestnet Asset Management reduced its IBM position by 4.1% in the second quarter, selling 43,951 shares and retaining 1.02 million shares valued at approximately $285.8 million. Institutional investors collectively own 58.96% of IBM.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $265.16 target price, despite targets ranging from $175 to $293 and some sell or reduce recommendations.
• IBM’s latest quarter met EPS expectations at $2.93 but missed revenue estimates, reporting $17.16 billion versus $17.46 billion expected. The company continues to emphasize recurring revenue, AI and quantum initiatives, while a reported z-series shortfall and related investigation add risk.

Envestnet Asset Management Inc. trimmed its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 4.1% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,016,199 shares of the technology company's stock after selling 43,951 shares during the period. Envestnet Asset Management Inc. owned about 0.11% of International Business Machines worth $285,763,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. Andra AP fonden increased its holdings in International Business Machines by 9.7% in the 2nd quarter. Andra AP fonden now owns 134,780 shares of the technology company's stock worth $37,901,000 after acquiring an additional 11,880 shares in the last quarter. State Street Corp raised its position in shares of International Business Machines by 2.7% during the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company's stock valued at $15,760,430,000 after purchasing an additional 1,450,562 shares during the period. Security National Bank of SO Dak purchased a new position in shares of International Business Machines during the 2nd quarter valued at $50,000. Wellington Altus USA Inc. lifted its stake in shares of International Business Machines by 44.6% during the 2nd quarter. Wellington Altus USA Inc. now owns 726 shares of the technology company's stock valued at $204,000 after buying an additional 224 shares in the last quarter. Finally, Anchor Investment Management LLC boosted its holdings in International Business Machines by 4.4% in the 2nd quarter. Anchor Investment Management LLC now owns 8,721 shares of the technology company's stock worth $2,452,000 after buying an additional 366 shares during the period. 58.96% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Robert W. Baird assumed coverage on International Business Machines in a research note on Tuesday, July 21st. They issued a "neutral" rating and a $230.00 price target for the company. Craig Hallum started coverage on International Business Machines in a research note on Wednesday, August 19th. They issued a "buy" rating for the company. HSBC set a $175.00 target price on International Business Machines and gave the stock a "reduce" rating in a research report on Thursday, July 16th. Wall Street Zen downgraded International Business Machines from a "hold" rating to a "sell" rating in a research note on Saturday, September 12th. Finally, Morgan Stanley dropped their price target on International Business Machines from $293.00 to $190.00 and set an "equal weight" rating for the company in a research note on Thursday, July 23rd. Seventeen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, International Business Machines currently has a consensus rating of "Moderate Buy" and a consensus target price of $265.16.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.27% of the company's stock.

Key International Business Machines News

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

• Positive Sentiment: Recurring revenue provides support: IBM’s annual recurring revenue continued to grow despite a weak second quarter, reinforcing the company’s transition toward more predictable software and services revenue. The article suggests this metric could become a more important investor focus than the quarterly miss. Can This Number Push IBM Stock Higher?
• Positive Sentiment: z17 expands IBM’s AI footprint: IBM placed its z17 mainframe at Marist University’s new Innovation Incubator for AI, finance and polling research. The initiative deepens a long-standing partnership and may help showcase IBM’s mainframe and AI capabilities, although it is not expected to have a material near-term financial impact. Marist University and IBM Launch Innovation Incubator
• Positive Sentiment: Long-term AI and quantum opportunities: IBM and NASA released an open lunar foundation model, while IBM, Lockheed Martin and ETH Zurich launched a quantum innovation hub. These efforts support IBM’s positioning in scientific AI and quantum computing, but remain longer-term growth catalysts. What Do IBM Lunar AI and Quantum Hub Moves Mean for Investors?
• Neutral Sentiment: Executive comments on Meta’s Muse: Vice Chair Gary Cohn said he is uncomfortable providing personal data to Meta’s Muse AI agent and advocated outcome-focused AI regulation. The comments may reinforce IBM’s enterprise-privacy messaging, but they do not represent a new contract or direct financial catalyst for IBM. Gary Cohn on Meta’s Muse
• Negative Sentiment: Q2 shortfall and investigation remain risks: Hagens Berman said it is investigating potential securities-law violations after IBM previewed disappointing second-quarter results, including a reported shortfall tied to its z-series business. The investigation is preliminary, but it adds legal and reputational pressure following the earnings disappointment. IBM Investigation Following Z-Series Shortfall

International Business Machines Stock Performance

International Business Machines stock opened at $232.60 on Thursday. The company's 50-day moving average price is $230.68 and its 200-day moving average price is $246.23. 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 company has a market cap of $219.14 billion, a PE ratio of 20.64, a price-to-earnings-growth ratio of 2.21 and a beta of 0.71. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46.

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

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were given a dividend of $1.69 per share. The ex-dividend date was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines's payout ratio is 59.98%.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.

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.