Herbst Group LLC Raises Stock Holdings in International Business Machines Corporation $IBM

Key Points

• Herbst Group LLC increased its stake in IBM by 108.5% in Q4, now owning 11,195 shares valued at about $3.316 million (roughly 2.0% of the fund and its 21st largest holding).
• IBM won FedRAMP authorizations for 11 AI/automation solutions (including watsonx), unlocking U.S. federal procurement opportunities, and launched a 10‑year collaboration with ETH Zurich to advance AI+quantum research as a long‑term growth driver.
• Analysts are broadly positive (average target ~$314.60) while IBM reported an EPS beat ($4.52 vs $4.33) with revenue up 12.2%; the company also pays a $1.68 quarterly dividend (≈2.8% yield).

Herbst Group LLC lifted its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 108.5% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 11,195 shares of the technology company's stock after acquiring an additional 5,825 shares during the period. International Business Machines accounts for approximately 2.0% of Herbst Group LLC's portfolio, making the stock its 21st biggest holding. Herbst Group LLC's holdings in International Business Machines were worth $3,316,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in IBM. Mattson Financial Services LLC purchased a new stake in International Business Machines in the 3rd quarter valued at about $852,000. Waverton Investment Management Ltd lifted its holdings in shares of International Business Machines by 3.3% during the 3rd quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company's stock worth $280,439,000 after acquiring an additional 32,072 shares during the period. NEOS Investment Management LLC lifted its holdings in shares of International Business Machines by 51.7% during the 3rd quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company's stock worth $32,278,000 after acquiring an additional 38,973 shares during the period. American National Bank & Trust boosted its position in shares of International Business Machines by 26.2% in the third quarter. American National Bank & Trust now owns 12,537 shares of the technology company's stock worth $3,537,000 after acquiring an additional 2,603 shares during the last quarter. Finally, Advisors Capital Management LLC boosted its position in shares of International Business Machines by 3.8% in the third quarter. Advisors Capital Management LLC now owns 347,155 shares of the technology company's stock worth $97,953,000 after acquiring an additional 12,623 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines News Summary

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

• Positive Sentiment: FedRAMP authorizations clear 11 IBM AI/automation solutions (including watsonx) for U.S. federal use, easing procurement and opening a sizeable government revenue channel; authorizations were enabled via IBM’s strategic collaboration with AWS. IBM Expands FedRAMP Portfolio with Authorization of 11 Software Solutions, Including watsonx
• Positive Sentiment: Market reaction: coverage notes the FedRAMP approvals as an immediate catalyst for IBM shares, helping lift sentiment toward its AI software portfolio. IBM Stock Rises after Getting Government Approval for Its AI and Automation Tools
• Positive Sentiment: Long‑term R&D boost: IBM and ETH Zurich launched a 10‑year collaboration to develop next‑gen AI+quantum algorithms — strengthens IBM’s technology leadership, talent pipeline and positioning in a high‑growth, strategic area. This is a multi‑year value driver rather than immediate revenue. IBM and ETH Zurich join forces to shape the future of algorithms for the AI and quantum era
• Positive Sentiment: Quantum progress: analyst pieces highlight IBM advances in quantum computing research (quantum‑AI algorithms and hardware roadmaps) that support a longer‑term growth narrative in frontier computing. IBM Advances Quantum Computing Research: Will it Boost Prospects?
• Neutral Sentiment: Analyst/opinion tone: commentary (Seeking Alpha, Zacks) argues the recent pullback is an investment opportunity and flags IBM as a pick in AI/quantum themes — useful for momentum investors but mainly opinion‑driven. IBM: The Market Is Overreacting And This Retracement Is Creating An Opportunity
• Neutral Sentiment: Business mix: IBM Consulting shows signs of rebound with AI demand, but analysts caution durability given macro competition — a modest positive for revenue but not guaranteed to sustain margins. IBM Consulting Rebounds Slightly: Is AI Enough to Fuel Durable Growth?
• Negative Sentiment: Relative performance: several reports note IBM has risen recently but continues to underperform the broader market and remains below its recent moving‑average levels — a headwind for momentum investors and a reason some funds may still be cautious. International Business Machines Corp. stock rises Tuesday, still underperforms market

Wall Street Analysts Forecast Growth

IBM has been the subject of several research analyst reports. Bank of America upped their price target on shares of International Business Machines from $315.00 to $335.00 and gave the stock a "buy" rating in a research report on Tuesday, January 13th. DZ Bank upgraded shares of International Business Machines to a "hold" rating in a report on Wednesday, February 11th. Dbs Bank upgraded International Business Machines from a "hold" rating to a "moderate buy" rating in a report on Monday, January 19th. Argus set a $360.00 target price on International Business Machines in a research report on Friday, January 30th. Finally, Royal Bank Of Canada set a $361.00 target price on International Business Machines in a report on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $314.60.

International Business Machines Trading Up 0.5%

NYSE IBM opened at $243.69 on Thursday. The firm has a market capitalization of $228.59 billion, a price-to-earnings ratio of 21.86, a PEG ratio of 2.43 and a beta of 0.73. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. International Business Machines Corporation has a one year low of $214.50 and a one year high of $324.90. The company's 50 day moving average price is $262.05 and its 200 day moving average price is $284.16.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.33 by $0.19. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The company had revenue of $19.69 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same period in the previous year, the firm earned $3.92 earnings per share. International Business Machines's revenue for the quarter was up 12.2% on a year-over-year basis. On average, sell-side analysts predict that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th were issued a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.8%. The ex-dividend date was Tuesday, February 10th. International Business Machines's dividend payout ratio is currently 60.27%.

Insider Buying and Selling at International Business Machines

In related news, Director David N. Farr bought 1,000 shares of the firm's stock in a transaction dated Friday, January 30th. The stock was bought at an average price of $304.00 per share, with a total value of $304,000.00. Following the completion of the transaction, the director directly owned 9,258 shares of the company's stock, valued at approximately $2,814,432. This represents a 12.11% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael Miebach bought 434 shares of the stock in a transaction dated Wednesday, February 25th. The stock was bought at an average price of $233.33 per share, with a total value of $101,265.22. Following the purchase, the director owned 434 shares of the company's stock, valued at approximately $101,265.22. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders purchased 1,484 shares of company stock valued at $417,157. 0.27% of the stock is owned by insiders.

International Business Machines 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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