HighTower Advisors LLC Acquires 372,987 Shares of International Business Machines Corporation $IBM

Key Points

• HighTower Advisors increased its IBM stake by 27.8% in the second quarter, acquiring 372,987 shares for a total holding of 1.72 million shares valued at approximately $482.6 million. Institutional investors collectively own 58.96% of IBM.
• IBM’s latest quarterly results matched analysts’ expectations at $2.93 earnings per share, while revenue reached $17.16 billion, up 1.1% year over year but below forecasts. The company maintains a quarterly dividend of $1.69, representing a 2.7% yield.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $265.16. However, IBM senior vice president Robert Thomas sold 25,000 shares, and insiders own just 0.27% of the stock.

HighTower Advisors LLC grew its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 27.8% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,716,120 shares of the technology company's stock after acquiring an additional 372,987 shares during the period. HighTower Advisors LLC owned 0.18% of International Business Machines worth $482,590,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in IBM. BlackRock Inc. purchased a new stake in International Business Machines during the 2nd quarter worth about $21,586,659,000. Bank of America Corp DE purchased a new position in International Business Machines during the 2nd quarter valued at about $4,214,868,000. Bank of New York Mellon Corp purchased a new position in International Business Machines during the 2nd quarter valued at about $2,606,782,000. Norges Bank bought a new stake in shares of International Business Machines during the fourth quarter valued at about $2,446,429,000. Finally, Legal & General Group Plc purchased a new stake in shares of International Business Machines in the second quarter worth about $1,874,733,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.27% of the stock is currently owned by corporate insiders.

International Business Machines Trading Down 0.3%

Shares of IBM opened at $248.39 on Wednesday. The firm's 50 day simple moving average is $234.72 and its 200 day simple moving average is $246.74. The company has a market capitalization of $234.01 billion, a P/E ratio of 22.04, a P/E/G ratio of 2.37 and a beta of 0.71. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts' consensus estimates of $2.93. The business had revenue of $17.16 billion during 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 business's quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.80 EPS. Sell-side analysts forecast that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines's dividend payout ratio is currently 59.98%.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s AI deployment with a Turkish credit bureau will process approximately 23 million transactions daily, providing evidence that its technology is being used at production scale. The contract’s financial value was not disclosed, limiting the immediate earnings impact. IBM's New AI Deal Must Handle 23 Million Transactions Daily
• Positive Sentiment: IBM’s collaboration with NASA to release an open-source lunar foundation model enhances its credibility in specialized AI. The model analyzes lunar data for features such as craters, ice deposits and volcanic activity, potentially supporting future government and research workloads. IBM Takes its AI Strategy Beyond Earth with NASA Lunar Model
• Positive Sentiment: Technical traders see IBM potentially breaking above the $239 resistance level after forming an ascending-triangle pattern. Sustained trading above that level could reinforce momentum and attract additional buyers. Stock of the Day: Did IBM Just Break Out?
• Neutral Sentiment: NVIDIA’s CUDA-Q Logical platform includes IBM quantum hardware in early benchmarking and could make hybrid GPU-quantum computing more practical. The development supports IBM’s long-term quantum ecosystem, but commercial revenue and adoption remain uncertain. Cashing in on the Qubit: NVIDIA Takes the Quantum Leap
• Neutral Sentiment: Europe’s green IT software market is forecast to more than double by 2031 as companies address sustainability reporting and energy optimization. IBM is listed among the potential beneficiaries, although the report does not identify new IBM revenue or contracts. Europe Green IT Software Forecasts Growth
• Negative Sentiment: Quiver Quantitative data shows an IBM senior vice president sold 25,000 shares, while broader insider activity over the past six months included no purchases. The sale may weigh modestly on sentiment, though it does not necessarily indicate a change in IBM’s fundamentals. IBM Stock Opinions on Recent Price Surge and AI Deals
• Negative Sentiment: IBM’s reported settlement of discrimination-related claims tied to Trump-era diversity, equity and inclusion policies adds legal and reputational risk, although the article provides limited detail on IBM’s payment or potential financial exposure. Consulting's Trump-era DEI Bill

Analyst Ratings Changes

A number of research firms have recently commented on IBM. Sanford C. Bernstein restated a "market perform" rating on shares of International Business Machines in a research report on Thursday, July 16th. Craig Hallum started coverage on shares of International Business Machines in a research note on Wednesday, August 19th. They issued a "buy" rating on the stock. Bank of America raised their price target on shares of International Business Machines from $315.00 to $330.00 and gave the company a "buy" rating in a report on Monday, July 6th. Roth Capital restated a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Finally, Piper Sandler raised shares of International Business Machines to an "overweight" rating in a report on Tuesday, June 23rd. Seventeen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $265.16.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.

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