Gateway Investment Advisers LLC Lowers Holdings in International Business Machines Corporation $IBM

Key Points

• Gateway Investment Advisers LLC cut its stake in IBM by 63.1% in the fourth quarter, selling 22,954 shares and leaving 13,416 shares valued at about $3.97 million.
• IBM beat estimates with quarterly EPS of $1.91 (vs. $1.81 expected) and revenue of $15.92 billion, up 9.5% year‑over‑year, and raised its quarterly dividend to $1.69 (annualized $6.76, ~2.9% yield).
• Analysts remain broadly positive—MarketBeat shows a consensus Moderate Buy with an average target of $294.41—and sentiment is supported by recent upgrades and IBM’s AI/quantum progress showcased at Think 2026.

Gateway Investment Advisers LLC decreased its holdings in International Business Machines Corporation (NYSE:IBM - Free Report) by 63.1% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 13,416 shares of the technology company's stock after selling 22,954 shares during the quarter. Gateway Investment Advisers LLC's holdings in International Business Machines were worth $3,974,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in International Business Machines by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock valued at $28,796,390,000 after buying an additional 1,439,824 shares during the period. Capital World Investors grew its holdings in International Business Machines by 13.9% in the 3rd quarter. Capital World Investors now owns 17,045,156 shares of the technology company's stock valued at $4,809,461,000 after buying an additional 2,077,506 shares during the period. Legal & General Group Plc grew its holdings in shares of International Business Machines by 2.5% during the 3rd quarter. Legal & General Group Plc now owns 7,302,722 shares of the technology company's stock worth $2,060,536,000 after purchasing an additional 176,219 shares during the period. Amundi grew its holdings in shares of International Business Machines by 17.9% during the 3rd quarter. Amundi now owns 4,777,516 shares of the technology company's stock worth $1,382,695,000 after purchasing an additional 725,191 shares during the period. Finally, Invesco Ltd. grew its holdings in shares of International Business Machines by 2.2% during the 3rd quarter. Invesco Ltd. now owns 3,921,228 shares of the technology company's stock worth $1,106,414,000 after purchasing an additional 86,123 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on IBM shares. DZ Bank upgraded International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 target price for the company in a report on Friday, April 24th. Oppenheimer decreased their target price on International Business Machines from $380.00 to $320.00 and set an "outperform" rating for the company in a report on Thursday, April 16th. Citigroup started coverage on International Business Machines in a report on Friday, April 10th. They set a "buy" rating and a $285.00 target price for the company. Evercore boosted their target price on International Business Machines from $330.00 to $345.00 and gave the stock an "outperform" rating in a report on Thursday, January 29th. Finally, Morgan Stanley boosted their target price on International Business Machines from $215.00 to $225.00 and gave the stock an "equal weight" rating in a report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $294.41.

Insiders Place Their Bets

In related news, Director Michael Miebach purchased 434 shares of the firm's stock in a transaction on Wednesday, February 25th. The stock was purchased at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the acquisition, the director directly owned 434 shares in the company, valued at $101,265.22. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.27% of the stock is currently owned by corporate insiders.

International Business Machines News Roundup

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

• Positive Sentiment: IBM showcased AI productivity gains and quantum milestones at its Think 2026 conference, citing large developer productivity lifts and messaging that “quantum advantage” may be within reach — this supports upside to IBM’s software, services and quantum growth narratives. IBM touts AI productivity gains and quantum milestones at Think conference
• Positive Sentiment: IBM Consulting announced expanded AI capabilities and new IBM Enterprise Advantage assets to accelerate hybrid‑AI deployments for regulated and enterprise customers — a clear revenue/upsell catalyst for consulting and recurring software services. IBM Consulting Expands AI Capabilities
• Positive Sentiment: Analyst support persists: Wedbush reaffirmed an “outperform” stance with a $320 target, signaling continued institutional conviction in IBM’s AI/quantum roadmap despite recent weakness. Wedbush reaffirms outperform
• Positive Sentiment: Rising investor interest in quantum-computing ETFs and thematic flows strengthens the investment narrative for firms with quantum roadmaps (including IBM), helping sentiment toward IBM’s longer-term growth vectors. Why to Bet on Quantum Computing ETFs Now
• Neutral Sentiment: Royal Bank of Canada trimmed its price target from $330 to $300 but kept an “outperform” rating — a mixed signal (lower target but still bullish), so watch revisions rather than headlines. RBC lowers price target
• Neutral Sentiment: Kyndryl’s announced cuts and weaker forecast are in the news; outcomes at Kyndryl can indirectly affect IBM’s service/partner dynamics but are not an immediate earnings driver for IBM. Kyndryl plans job cuts, forecasts below estimates
• Negative Sentiment: Longer‑term performance concern: coverage pieces note IBM is down ~27% over six months and highlight competitive pressure from agentic models (e.g., Anthropic’s Claude Code) that could erode legacy mainframe and middleware revenues — this explains part of the recent selloff and investor wariness. IBM Plummets 27% in 6 Months

International Business Machines Stock Up 2.4%

NYSE IBM opened at $231.23 on Friday. The stock has a market cap of $217.33 billion, a PE ratio of 20.44, a P/E/G ratio of 2.34 and a beta of 0.58. International Business Machines Corporation has a fifty-two week low of $220.72 and a fifty-two week high of $324.90. The business has a 50 day moving average price of $243.05 and a two-hundred day moving average price of $277.83. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion during the quarter, compared to analysts' expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines's quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.60 EPS. As a group, sell-side analysts predict that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be issued a $1.69 dividend. The ex-dividend date is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. This is a boost from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is currently 59.42%.

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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