Grandfield & Dodd LLC Buys Shares of 2,260 International Business Machines Corporation $IBM

Key Points

• Grandfield & Dodd LLC acquired 2,260 IBM shares worth approximately $636,000 in the second quarter. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.93, matching estimates, while revenue reached $17.16 billion and increased 1.1% year over year. The company also declared a quarterly dividend of $1.69 per share, equivalent to a 2.9% annual yield.
• Analysts maintain a consensus “Moderate Buy” rating with a $265.90 price target, although price targets vary widely and concerns remain about growth, valuation, legal risk and recent insider selling.

Grandfield & Dodd LLC purchased a new position in International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 2,260 shares of the technology company's stock, valued at approximately $636,000.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in IBM. Basepoint Wealth LLC purchased a new stake in shares of International Business Machines in the 4th quarter worth $25,000. Portus Wealth Advisors LLC bought a new stake in shares of International Business Machines during the first quarter valued at approximately $26,000. Cornerstone Financial Management LLC purchased a new stake in International Business Machines in the 4th quarter worth $28,000. SWAN Capital LLC bought a new position in International Business Machines during the third quarter valued at approximately $28,000. Finally, Bare Financial Services Inc boosted its position 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 valued at $29,000 after acquiring an additional 55 shares during the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Stock Performance

Shares of IBM stock opened at $231.43 on Thursday. The company has a market capitalization of $218.04 billion, a P/E ratio of 20.54, a P/E/G ratio of 2.21 and a beta of 0.71. International Business Machines Corporation has a 12-month low of $199.19 and a 12-month high of $332.46. The business's 50 day moving average is $242.89 and its two-hundred day moving average is $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 (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting the consensus estimate of $2.93. The firm had revenue of $17.16 billion during the quarter, compared to analysts' expectations of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm's revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the previous year, the business earned $2.80 earnings per share. Analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

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

Analyst Ratings Changes

Several equities research analysts have weighed in on IBM shares. Argus reduced their price objective on International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a research note on Thursday, July 16th. Barclays lowered their price objective on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating for the company in a research report on Thursday, July 23rd. Bank of America lifted their price objective on International Business Machines from $315.00 to $330.00 and gave the company a "buy" rating in a report on Monday, July 6th. Weiss Ratings cut shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 24th. Finally, HSBC set a $175.00 price objective on shares of International Business Machines and gave the stock a "reduce" rating in a research note on Thursday, July 16th. Sixteen equities 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. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $265.90.

Key International Business Machines News

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

Insider Buying and Selling

In other International Business Machines news, SVP Robert David 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 value of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.27% of the stock is owned by company insiders.

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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