GAMMA Investing LLC Trims Stake in International Business Machines Corporation $IBM

Key Points

• GAMMA Investing LLC cut its IBM stake by 9.9% in the third quarter, selling 2,846 shares and retaining 25,910 shares valued at approximately $5.7 million.
• IBM reported quarterly EPS of $2.93, in line with expectations, while revenue of $17.16 billion fell short of the $17.46 billion consensus estimate. The company also pays a $1.69 quarterly dividend, representing a 3.0% yield.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $253.52, although several firms recently lowered their targets amid concerns about delayed deals and slowing execution.

GAMMA Investing LLC decreased its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 9.9% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 25,910 shares of the technology company's stock after selling 2,846 shares during the quarter. GAMMA Investing LLC's holdings in International Business Machines were worth $5,698,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of IBM. Cornerstone Financial Management LLC acquired a new stake in International Business Machines during the fourth quarter worth approximately $28,000. Harborfront Financial Group LLC acquired a new position in International Business Machines in the second quarter valued at approximately $27,000. Hara Capital LLC acquired a new position in International Business Machines in the second quarter valued at approximately $28,000. Bare Financial Services Inc boosted its holdings in shares of International Business Machines by 114.6% during the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after buying an additional 55 shares in the last quarter. Finally, Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines during the 1st quarter worth approximately $26,000. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Price Performance

Shares of NYSE:IBM opened at $226.70 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46. The stock's 50 day moving average is $232.24 and its 200-day moving average is $244.09. The firm has a market capitalization of $213.58 billion, a price-to-earnings ratio of 20.12, a PEG ratio of 2.10 and a beta of 0.73.

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 (EPS) for the quarter, meeting the consensus estimate of $2.93. The business had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines's revenue was up 1.1% compared to the same quarter last year. During the same quarter last year, the firm posted $2.80 EPS. Sell-side 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 was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date was Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is currently 59.98%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Quantum computing milestone: IBM advanced to Stage C, the final phase of DARPA’s Quantum Benchmarking Initiative. Independent experts will test IBM’s hardware, architecture and systems engineering, providing important third-party validation of its roadmap toward a fault-tolerant quantum computer. IBM is targeting 2029 for that milestone. IBM Advances to Stage C of DARPA Quantum Benchmarking Initiative
• Positive Sentiment: AI and consulting recovery hopes: Coverage argues IBM’s valuation has become more attractive following its recent decline, while a rebound in consulting demand and continued hybrid-cloud and AI adoption could support growth. IBM’s self-hosted “Bob” AI offering also targets customers that require secure, customer-managed infrastructure. IBM’s Valuation is Getting Interesting as AI and Consulting Rebound
• Positive Sentiment: Enterprise partnerships: IBM launched IBM Ready for SAP Solutions, combining its consulting capabilities with SAP cloud ERP to help midsize companies modernize operations and prepare their data for AI. The offering adds a potential channel for consulting and cloud-related revenue. IBM Teams Up with SAP
• Neutral Sentiment: Upcoming earnings: IBM will report third-quarter 2026 results on October 21, giving investors a near-term catalyst to assess whether delayed large deals have begun returning and whether AI and consulting growth are improving. IBM Third-Quarter 2026 Results Announcement
• Negative Sentiment: Execution concerns remain: Analysts highlighted IBM’s recent underperformance and the risk that a slowdown could persist after tens of large deals failed to close on time in the second quarter. Management said customers delayed rather than canceled those deals, but the timing of a recovery remains uncertain. What Happens To IBM Stock If Its Slowdown Lasts?
• Negative Sentiment: Customer attrition in VMware services: 11:11 Systems acquired select IBM VMware Cloud Service Provider enterprise customers. The transaction may modestly pressure IBM’s managed infrastructure and VMware-related business, although the financial impact was not disclosed. 11:11 Systems Acquires Select IBM VMware Cloud Service Provider Enterprise Customers

Wall Street Analyst Weigh In

IBM has been the subject of several research analyst reports. Jefferies Financial Group lowered their price objective on shares of International Business Machines from $320.00 to $260.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. JPMorgan Chase & Co. cut their target price on shares of International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a research note on Friday, July 17th. Craig Hallum initiated coverage on shares of International Business Machines in a research note on Wednesday, August 19th. They issued a "buy" rating for the company. Argus dropped their price objective on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a report on Thursday, July 16th. Finally, Robert W. Baird initiated coverage on shares of International Business Machines in a report on Tuesday, July 21st. They set a "neutral" rating and a $230.00 price objective on the stock. Eighteen investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $253.52.

Insider Activity at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction 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 link. 0.27% of the stock is currently owned by insiders.

About International Business Machines

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM's portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.

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