Gradient Investments LLC Raises Stock Holdings in International Business Machines Corporation $IBM

Key Points

• Gradient Investments increased its IBM stake by 6.3% in the second quarter, adding 3,052 shares to reach 51,157 shares valued at approximately $14.4 million. Institutional investors collectively own 58.96% of IBM.
• IBM’s outlook is mixed: new AI-spending and government-cloud offerings support software growth, while declining legacy infrastructure revenue, legal investigations and post-earnings volatility create risks.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $265.40, despite several recent target cuts. IBM reported quarterly revenue of $17.16 billion, up 1.1% year over year, and declared a quarterly dividend of $1.69 per share, yielding about 2.9%.

Gradient Investments LLC raised its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 6.3% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 51,157 shares of the technology company's stock after buying an additional 3,052 shares during the quarter. Gradient Investments LLC's holdings in International Business Machines were worth $14,386,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of IBM. McGowan Group Asset Management Inc. increased its holdings in International Business Machines by 1.2% in the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company's stock valued at $798,000 after purchasing an additional 33 shares during the last quarter. Exencial Wealth Advisors LLC lifted its stake in International Business Machines by 0.4% during the fourth quarter. Exencial Wealth Advisors LLC now owns 7,874 shares of the technology company's stock worth $2,332,000 after purchasing an additional 34 shares in the last quarter. Howard Capital Management Inc. boosted its position in shares of International Business Machines by 0.5% during the fourth quarter. Howard Capital Management Inc. now owns 6,793 shares of the technology company's stock worth $2,012,000 after buying an additional 35 shares during the period. Prasad Wealth Partners LLC boosted its position in shares of International Business Machines by 1.0% during the fourth quarter. Prasad Wealth Partners LLC now owns 3,604 shares of the technology company's stock worth $1,068,000 after buying an additional 35 shares during the period. Finally, Orca Wealth Management LLC grew its stake in shares of International Business Machines by 3.7% in the fourth quarter. Orca Wealth Management LLC now owns 975 shares of the technology company's stock valued at $285,000 after buying an additional 35 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines News Roundup

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

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Robert W. Baird initiated coverage on International Business Machines in a research note on Tuesday, July 21st. They set a "neutral" rating and a $230.00 target price on the stock. Citigroup cut their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. Oppenheimer lowered shares of International Business Machines from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 15th. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines in a report on Thursday, July 23rd. Finally, Susquehanna cut their target price on shares of International Business Machines from $303.00 to $225.00 and set a "neutral" rating on the stock in a research note on Friday, July 24th. 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's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $265.40.

International Business Machines Price Performance

IBM stock opened at $237.08 on Friday. The business has a 50 day moving average price of $258.59 and a 200 day moving average price of $255.29. 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 stock has a market cap of $223.36 billion, a price-to-earnings ratio of 21.04, a PEG ratio of 2.33 and a beta of 0.70. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data 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 for the quarter, compared to analysts' expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm's revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter last year, the company earned $2.80 earnings per share. Equities research analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is currently 59.98%.

About International Business Machines

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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