International Business Machines Corporation $IBM Position Raised by Financial & Tax Architects LLC

Key Points

• Financial & Tax Architects increased its IBM position by 14.2% in the third quarter, bringing its holdings to 33,549 shares valued at approximately $7.38 million. Institutional investors collectively own 58.96% of IBM’s stock.
• IBM reported quarterly EPS of $2.93, matching analyst expectations, while revenue of $17.16 billion fell short of estimates but rose 1.1% year over year. The company maintains a quarterly dividend of $1.69, equivalent to a 2.9% yield.
• Wall Street’s consensus rating is “Moderate Buy,” with an average price target of $254.96 versus the reported trading price of $234.04; however, an IBM senior vice president sold 25,000 shares, reducing his position by 34.34%.

Financial & Tax Architects LLC raised its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 14.2% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 33,549 shares of the technology company's stock after purchasing an additional 4,183 shares during the period. International Business Machines accounts for 1.6% of Financial & Tax Architects LLC's portfolio, making the stock its 23rd largest position. Financial & Tax Architects LLC's holdings in International Business Machines were worth $7,378,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in shares of International Business Machines in the 2nd quarter worth approximately $21,586,659,000. State Street Corp increased its position in International Business Machines by 2.7% during 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 buying an additional 1,450,562 shares in the last quarter. Bank of America Corp DE bought a new position in International Business Machines during the 2nd quarter valued at approximately $4,214,868,000. Bank of New York Mellon Corp bought a new position in International Business Machines during the 2nd quarter valued at approximately $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake 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 last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Trading Up 2.7%

NYSE:IBM opened at $234.04 on Friday. The stock has a market cap of $220.50 billion, a price-to-earnings ratio of 20.77, a PEG ratio of 2.17 and a beta of 0.73. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company's 50 day moving average price is $232.08 and its 200-day moving average price is $243.66. International Business Machines Corporation has a 52 week low of $199.19 and a 52 week high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts' consensus estimates of $2.93. The company had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. 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 EPS. On average, equities research analysts forecast that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were issued a $1.69 dividend. The ex-dividend date of this dividend was 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 presently 59.98%.

Insider Activity at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.27% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on IBM shares. Truist Financial initiated coverage on International Business Machines in a report on Friday, October 9th. They issued a "hold" rating and a $240.00 target price on the stock. Stifel Nicolaus cut their target price on International Business Machines from $290.00 to $235.00 and set a "buy" rating on the stock in a research note on Monday, July 20th. Citigroup reduced their price target on International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a report on Friday, July 24th. Barclays lowered their price target on 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. Finally, Robert W. Baird initiated coverage on International Business Machines in a research report on Tuesday, July 21st. They issued a "neutral" rating and a $230.00 price target for the company. Nineteen research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $254.96.

More International Business Machines News

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

• Positive Sentiment: Potential earnings beat: Bank of America expects IBM to modestly exceed third-quarter estimates, while maintaining its 2026 outlook. The bank reiterated a “buy” rating and $280 price target, citing higher-margin software growth, improving profitability and strong free cash flow. IBM poised for modest third-quarter beat, says Bank of America
• Positive Sentiment: Analyst support: Morgan Stanley raised its IBM price target from $190 to $238, although it retained an “equal weight” rating. Royal Bank of Canada also reaffirmed its “outperform” rating, providing additional support ahead of earnings.
• Positive Sentiment: Semiconductor research collaboration: IBM and Siemens are working together to advance IBM’s nanostack transistor architecture. Siemens will contribute electronic-design automation, process simulation and manufacturing expertise, potentially strengthening IBM’s long-term semiconductor and technology prospects. IBM and Siemens Collaborate on Research to Advance Nanostack Architecture
• Neutral Sentiment: AI governance demand: IBM reported that 80% of surveyed EMEA executives had escalated an AI-related incident to their board or C-suite. The findings highlight a growing need for AI governance, cybersecurity and compliance services, but also show that many organizations are not yet prepared for autonomous AI agents. IBM Study on AI Incidents and Governance
• Negative Sentiment: Dividend and balance-sheet concerns: IBM’s century-long record of annual dividend increases is being tested by token-sized raises, rising debt and concerns that shareholder payouts could compete with funding for AI investments. IBM Dividend and Debt Concerns
• Negative Sentiment: Cash-flow quality and execution risks: Analysts note that much of IBM’s first-half operating-cash-flow improvement came from movements in financing receivables rather than clearly sustainable growth. Investors also remain focused on competition, margin pressure and whether AI and hybrid-cloud expansion can justify IBM’s premium valuation.

International Business Machines Profile

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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