Hamlin Capital Management LLC Acquires Shares of 193,749 International Business Machines Corporation $IBM

Key Points

• Hamlin Capital Management acquired 193,749 IBM shares worth approximately $54.5 million, making IBM a 1.2% portfolio holding and its 28th-largest position. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.93, in line with estimates, while revenue of $17.16 billion fell short of expectations but increased 1.1% year over year. The company also declared a quarterly dividend of $1.69, equivalent to a 2.9% annualized yield.
• Analysts maintain a consensus “Moderate Buy” rating with a $265.40 price target, citing AI, hybrid cloud, government software and quantum computing opportunities. However, legacy infrastructure weakness, IBM-related revenue declines at Kyndryl and securities-law investigations present ongoing risks.

Hamlin Capital Management LLC acquired a new stake 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 acquired 193,749 shares of the technology company's stock, valued at approximately $54,484,000. International Business Machines makes up 1.2% of Hamlin Capital Management LLC's investment portfolio, making the stock its 28th biggest position.

Several other institutional investors have also modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its stake in International Business Machines by 424.6% during the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company's stock worth $77,234,000 after purchasing an additional 211,040 shares during the last quarter. Assetmark Inc. boosted its holdings in International Business Machines by 24.8% in the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company's stock valued at $15,624,000 after purchasing an additional 12,791 shares in the last quarter. GLOBALT Investments LLC GA increased its stake in International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company's stock valued at $5,417,000 after purchasing an additional 2,930 shares during the last quarter. Rice Partnership LLC acquired a new stake in International Business Machines during the fourth quarter worth approximately $3,317,000. Finally, Sage Investment Advisers LLC acquired a new stake in International Business Machines during the fourth quarter worth approximately $4,101,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Price Performance

IBM stock opened at $235.92 on Thursday. 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 capitalization of $222.27 billion, a P/E ratio of 20.93, a PEG ratio of 2.31 and a beta of 0.70. The business has a 50 day simple moving average of $260.43 and a 200-day simple moving average of $255.93. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting analysts' consensus estimates of $2.93. The business 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 company's quarterly revenue was up 1.1% on a year-over-year basis. During the same period in the previous year, the company posted $2.80 EPS. As a group, equities analysts anticipate that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Announces Dividend

The firm also recently disclosed 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 is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines's payout ratio is currently 59.98%.

Trending Headlines about International Business Machines

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

• Positive Sentiment: FedRAMP authorization expands IBM’s government opportunity. IBM Maximo Application Suite as a Service for Government received FedRAMP Moderate authorization, enabling federal agencies to use the platform for secure asset, infrastructure and facilities management. The approval could support additional public-sector SaaS adoption and recurring revenue. IBM Maximo Application Suite Achieves FedRAMP Moderate Authorization
• Positive Sentiment: IBM’s sovereign AI strategy in India offers a growth catalyst. A partnership with Sarvam is targeting India’s public sector, while demand for hybrid cloud and AI services could support estimates and help offset slower legacy operations. Can IBM’s Sovereign AI Solutions for India Propel the Stock Higher?
• Positive Sentiment: Valuation and insider activity provide some support. One analysis argues IBM remains inexpensive on fair-value measures, with long-term upside tied to AI services and quantum computing. Recent reported insider purchases and a median analyst price target well above the current trading level may reinforce the bullish case, although institutional activity remains mixed. IBM Stock Still Looks Cheap On Fair Value Despite Weak Checks
• Neutral Sentiment: Quantum computing is a long-term opportunity but creates near-term uncertainty. CEO Arvind Krishna said quantum computing could make a meaningful contribution to revenue and profit by 2028 or 2029. The comments support IBM’s technology narrative, but the timeline leaves limited immediate earnings impact and has also heightened concerns about quantum risks to cryptocurrencies. IBM CEO Predicts Quantum Computing Will Become a Meaningful Business
• Negative Sentiment: Kyndryl’s results highlighted continuing IBM-related revenue declines. IBM’s former infrastructure-services business reported growth in the United States and consulting, but cited persistent IBM-related revenue headwinds. This suggests separation-related and legacy infrastructure weakness may continue to pressure IBM’s growth profile. Kyndryl Q1 2027 Earnings Call Highlights
• Negative Sentiment: Securities-law investigations add headline and litigation risk. Bleichmar Fonti & Auld and Pomerantz announced investigations concerning alleged misrepresentations about an IBM Z product slowdown. These announcements do not establish wrongdoing, but they may weigh on sentiment and increase uncertainty around IBM’s disclosures and legacy mainframe demand. IBM Legal News: Securities Fraud Investigation

Analyst Ratings Changes

IBM has been the subject of several research analyst reports. Royal Bank Of Canada restated an "outperform" rating and issued a $270.00 target price on shares of International Business Machines in a report on Tuesday, July 21st. The Goldman Sachs Group set a $270.00 price target on shares of International Business Machines in a research report on Thursday, July 23rd. Stifel Nicolaus decreased their price objective on shares of International Business Machines from $290.00 to $235.00 and set a "buy" rating for the company in a research note on Monday, July 20th. Roth Capital reaffirmed a "buy" rating on shares of International Business Machines in a report on Wednesday, June 3rd. Finally, Morgan Stanley cut their target price on International Business Machines from $293.00 to $190.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 23rd. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $265.40.

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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