Focused Alpha LLC Takes Position in International Business Machines Corporation $IBM

Key Points

• Focused Alpha LLC acquired 4,090 IBM shares during the second quarter, worth approximately $1.15 million. Institutional investors collectively own 58.96% of IBM’s outstanding stock.
• IBM’s latest quarterly results met earnings expectations at $2.93 per share, while revenue of $17.16 billion fell short of forecasts but increased 1.1% year over year.
• IBM declared a quarterly dividend of $1.69 per share, equivalent to a 2.9% yield, and analysts maintain a “Moderate Buy” consensus with an average price target of $265.90.

Focused Alpha LLC bought a new stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 4,090 shares of the technology company's stock, valued at approximately $1,150,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of IBM. Brighton Jones LLC grew its stake in shares of International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock worth $4,619,000 after purchasing an additional 2,323 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in International Business Machines by 10.6% during the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock valued at $571,000 after purchasing an additional 186 shares during the last quarter. Jump Financial LLC bought a new stake in International Business Machines during the second quarter worth approximately $211,000. Ieq Capital LLC grew its position in International Business Machines by 2.2% in the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock worth $11,383,000 after buying an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP grew its position in International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock worth $300,000 after buying an additional 106 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Price Performance

IBM opened at $231.43 on Thursday. The stock has a fifty day moving average price of $242.89 and a 200 day moving average price of $247.41. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46. The stock has a market cap of $218.04 billion, a price-to-earnings ratio of 20.54, a PEG ratio of 2.21 and a beta of 0.71.

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, hitting analysts' consensus estimates of $2.93. The company had revenue of $17.16 billion during the quarter, compared to the consensus estimate 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 period last year, the business earned $2.80 EPS. Analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors 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 yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is presently 59.98%.

Analysts Set New Price Targets

IBM has been the subject of a number of recent research reports. Needham & Company LLC assumed coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a "buy" rating for the company. Roth Capital reaffirmed a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Robert W. Baird began coverage on International Business Machines in a report on Tuesday, July 21st. They set a "neutral" rating and a $230.00 target price for the company. Susquehanna increased their price target on International Business Machines from $225.00 to $235.00 and gave the company a "neutral" rating in a research report on Monday. Finally, Craig Hallum assumed coverage on International Business Machines in a research note on Wednesday, August 19th. They issued a "buy" rating on the stock. Sixteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, International Business Machines presently has an average rating of "Moderate Buy" and an average target price of $265.90.

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert David Thomas sold 25,000 shares of the business's stock in a transaction that occurred 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 completion of the sale, the senior vice president directly owned 47,800 shares of the company's stock, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.27% of the stock is owned by company insiders.

International Business Machines News Summary

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

• Positive Sentiment: IBM Ventures expands quantum-computing exposure: IBM Ventures invested in BQP, a physics-acceleration company whose bookings have reportedly increased eightfold. The investment supports IBM’s positioning in quantum and advanced-computing infrastructure, although the deal is unlikely to materially affect near-term earnings. IBM Ventures backs BQP
• Positive Sentiment: AI and quantum themes continue to support the investment case: Analysts highlighted IBM among large technology companies that could benefit from quantum-computing adoption through cloud, software and infrastructure offerings. Retail-investor coverage also identified IBM as a favored long-term AI stock, particularly because of its enterprise focus and hybrid-cloud capabilities. Quantum boom investment ideas
• Neutral Sentiment: Dividend remains a key attraction: IBM is highlighted as a major technology dividend payer, with a quarterly distribution of $1.69 per share. The income profile may appeal to defensive investors, though dividend comparisons alone do not resolve concerns about valuation or growth. Cisco versus IBM dividend comparison
• Neutral Sentiment: IBM is promoting responsible AI adoption: A new study found that AI adoption in U.S. K-12 schools is outpacing institutional readiness, prompting IBM to launch a fellowship for education leaders. The initiative may strengthen IBM’s brand and future relationships but has limited immediate financial impact. IBM K-12 AI study
• Negative Sentiment: Securities-fraud investigation adds headline risk: Bleichmar Fonti & Auld said it is investigating whether IBM made potentially misleading statements about the pace of business deals. The announcement is an allegation, not a finding of wrongdoing, but it could increase legal uncertainty and investor caution. IBM securities investigation
• Negative Sentiment: Broader concerns remain over IBM’s growth outlook: Recent analysis cited AI-driven disruption to legacy services, pricing pressure and reduced estimates as reasons for IBM’s year-to-date weakness, despite support from hybrid cloud and watsonx. Technical coverage also identified resistance near $239, suggesting limited upside until momentum improves. IBM stock outlook

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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