International Business Machines Corporation $IBM Holdings Trimmed by Castle Rock Wealth Management LLC

Key Points

• Castle Rock Wealth Management cut its IBM position by 53.3% in the third quarter, selling 9,697 shares and retaining 8,511 shares valued at approximately $1.88 million. Institutional investors collectively own 58.96% of IBM.
• Analyst sentiment remains mixed: IBM has a consensus “Hold” rating and an average price target of $252.96, despite 18 Buy ratings. Recent analysts have lowered price targets, citing execution concerns and uncertainty around near-term AI-driven demand.
• IBM’s latest quarterly revenue rose 1.1% year over year to $17.16 billion, while EPS of $2.93 met expectations; the company also maintains a quarterly dividend of $1.69, equivalent to a 3.0% annualized yield.

Castle Rock Wealth Management LLC trimmed its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 53.3% in the third quarter, according to its most recent filing with the SEC. The institutional investor owned 8,511 shares of the technology company's stock after selling 9,697 shares during the period. Castle Rock Wealth Management LLC's holdings in International Business Machines were worth $1,883,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in IBM. BlackRock Inc. bought a new position in shares of International Business Machines in the second quarter valued at approximately $21,586,659,000. State Street Corp grew its stake in International Business Machines by 2.7% in the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company's stock valued at $15,760,430,000 after purchasing an additional 1,450,562 shares during the period. Bank of America Corp DE increased its position in shares of International Business Machines by 7.0% during the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock valued at $3,893,669,000 after purchasing an additional 1,049,602 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of International Business Machines in the 2nd quarter worth about $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in International Business Machines by 0.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company's stock valued at $2,143,245,000 after buying an additional 53,388 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on IBM shares. Piper Sandler raised International Business Machines to an "overweight" rating in a report on Tuesday, June 23rd. HSBC decreased their price objective on International Business Machines from $175.00 to $174.00 in a research note on Friday, July 24th. Oppenheimer downgraded International Business Machines from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 15th. Barclays reduced their target price on International Business Machines from $288.00 to $262.00 and set an "overweight" rating for the company in a report on Thursday, July 23rd. Finally, BMO Capital Markets decreased their price target on International Business Machines from $270.00 to $230.00 and set a "market perform" rating on the stock in a research report on Thursday, July 23rd. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $252.96.

More International Business Machines News

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

• Positive Sentiment: IBM advanced to Stage C of DARPA’s Quantum Benchmarking Initiative, putting its hardware and architecture through independent verification. The company is targeting a fault-tolerant quantum computer by 2029, giving investors a potential long-term growth catalyst and external validation of its technology roadmap. IBM Wins DARPA’s Quantum Stamp of Approval
• Positive Sentiment: IBM launched Ready for SAP Solutions, a consulting offering designed to help midsize and fast-growing companies modernize SAP cloud ERP systems using AI, integrated data and automation. The initiative could support consulting demand and strengthen IBM’s relationship with SAP customers. IBM and SAP ERP modernization partnership
• Positive Sentiment: IBM Consulting’s second-quarter profit rose 15.1% to $647 million despite nearly flat revenue, indicating improved delivery economics and margin expansion. Separately, an IBM security partnership helped keep the cybersecurity sector in focus, potentially highlighting demand for IBM’s security capabilities. IBM Consulting profit growth
• Neutral Sentiment: Truist Securities initiated coverage with a Hold rating and a $240 price target. The firm sees IBM’s long-term enterprise-computing position positively but said the timing of AI-driven demand and near-term execution remain uncertain. Truist starts IBM at Hold
• Negative Sentiment: IBM’s mainframe revenue reportedly fell 42% in fiscal second quarter, while distributed infrastructure rose 37%; total revenue increased only 1% to approximately $17.2 billion. The contrast underscores pressure on a legacy business and raises questions about the durability of IBM’s growth outlook. IBM mainframe revenue decline
• Negative Sentiment: Analysts continue to cite IBM’s second-quarter execution shortfall, including large deals that closed later than expected. That caution is limiting enthusiasm despite the stock’s lower valuation and the company’s longer-term AI and quantum opportunities. IBM Stock Looks Cheap

Insider Buying and Selling

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.27% of the stock is owned by insiders.

International Business Machines Price Performance

International Business Machines stock traded up $0.30 during mid-day trading on Friday, hitting $226.91. 3,349,049 shares of the company traded hands, compared to its average volume of 7,538,434. International Business Machines Corporation has a one year low of $199.19 and a one year high of $332.46. The stock has a fifty day moving average price of $232.24 and a 200-day moving average price of $244.09. The stock has a market cap of $213.78 billion, a price-to-earnings ratio of 20.13, a price-to-earnings-growth ratio of 2.10 and a beta of 0.73. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting analysts' consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. During the same quarter in the prior year, the firm earned $2.80 earnings per share. The firm's revenue was up 1.1% on a year-over-year basis. On average, equities analysts predict 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. Shareholders of record on Monday, August 10th were paid a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 3.0%. International Business Machines's dividend payout ratio is currently 59.98%.

About International Business Machines

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM's portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.

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