Franklin Street Advisors Inc. NC Acquires 12,540 Shares of International Business Machines Corporation $IBM

Key Points

• Franklin Street Advisors increased its IBM stake by 33.2%, purchasing 12,540 additional shares to own 50,293 shares valued at approximately $14.1 million. Institutional investors collectively hold 58.96% of IBM’s outstanding stock.
• Analyst sentiment remains broadly positive but mixed: IBM has a “Moderate Buy” consensus rating from MarketBeat, with an average price target of $265.40, despite several recent rating or price-target reductions.
• IBM reported quarterly EPS of $2.93, in line with estimates, while revenue of $17.16 billion fell short of expectations but grew 1.1% year over year. The company also declared a quarterly dividend of $1.69 per share, equivalent to a 2.9% annualized yield.

Franklin Street Advisors Inc. NC increased its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 33.2% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 50,293 shares of the technology company's stock after purchasing an additional 12,540 shares during the period. Franklin Street Advisors Inc. NC's holdings in International Business Machines were worth $14,143,000 at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in shares of International Business Machines by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock worth $28,796,390,000 after buying an additional 1,439,824 shares in the last quarter. State Street Corp increased its stake in shares of International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock valued at $16,290,452,000 after acquiring an additional 518,321 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock valued at $6,679,105,000 after acquiring an additional 336,069 shares during the period. Capital World Investors lifted its position in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock valued at $6,523,720,000 after acquiring an additional 4,976,756 shares during the period. Finally, Bank of America Corp DE boosted its stake in International Business Machines by 7.0% during the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock worth $3,893,669,000 after acquiring an additional 1,049,602 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have commented on IBM. Citigroup reduced their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a report on Friday, July 24th. Wall Street Zen lowered shares of International Business Machines from a "hold" rating to a "sell" rating in a report on Saturday, July 18th. Wolfe Research cut shares of International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd. Wedbush set a $350.00 target price on International Business Machines in a research note on Tuesday, June 2nd. Finally, Oppenheimer lowered International Business Machines from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 15th. Fifteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $265.40.

International Business Machines Stock Performance

NYSE IBM opened at $237.08 on Monday. The company has a fifty day simple moving average of $258.59 and a 200 day simple moving average of $254.94. International Business Machines Corporation has a 12-month low of $199.19 and a 12-month high of $332.46. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The company has a market cap of $223.36 billion, a P/E ratio of 21.04, a PEG ratio of 2.33 and a beta of 0.70.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting analysts' consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the business posted $2.80 EPS. International Business Machines's quarterly revenue was up 1.1% on a year-over-year basis. Sell-side analysts predict that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced 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. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. International Business Machines's payout ratio is presently 59.98%.

International Business Machines News Summary

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

• Positive Sentiment: IBM previewed Apptio AI Value & ROI, a tool designed to track AI spending—including token costs—and connect it with business outcomes. The offering could help enterprises justify AI investments and strengthen IBM’s position in AI governance and FinOps software. IBM previews Apptio AI Value & ROI to track AI spend and results
• Positive Sentiment: IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools in regulated environments. The approval may expand IBM’s government-cloud opportunity and provide a credibility boost for its software business. IBM Secures FedRAMP Moderate Authorization For Maximo
• Neutral Sentiment: Recent commentary describes IBM as a high-risk, mixed setup: software growth is strong, but declining mainframe sales and the aftermath of the earnings-related selloff could limit the rebound. Investors are weighing whether the recovery reflects value or unresolved operational risk. IBM’s Post-Collapse Rebound: A Complex Risk Reward Profile
• Negative Sentiment: Hagens Berman, Bleichmar Fonti & Auld, and Pomerantz announced investigations related to IBM’s reported financial disclosures and the severe post-earnings decline. These announcements do not establish wrongdoing, but they add legal uncertainty, reputational risk and potential shareholder-claim exposure. IBM Securities Fraud Investigation is Ongoing Pomerantz IBM investor investigation
• Negative Sentiment: Kyndryl reported ongoing IBM-related revenue declines, underscoring potential headwinds in legacy infrastructure and services. That weakness contrasts with IBM’s software momentum and may reinforce concerns about the company’s transition away from older businesses. Kyndryl earnings call highlights

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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