International Business Machines Corporation $IBM Shares Purchased by Envestnet Portfolio Solutions Inc.

Key Points

• Envestnet Portfolio Solutions increased its IBM stake by 39.5% in the second quarter, bringing its holdings to 34,908 shares valued at approximately $9.7 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.93, matching analyst estimates, while revenue of $17.16 billion fell short of expectations but rose 1.1% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $265.16.
• IBM declared a quarterly dividend of $1.69, equivalent to $6.76 annually and a 2.9% yield. Separately, Senior Vice President Robert Thomas sold 25,000 shares, reducing his direct stake by 34.34%.

Envestnet Portfolio Solutions Inc. raised its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 39.5% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 34,908 shares of the technology company's stock after purchasing an additional 9,883 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in International Business Machines were worth $9,723,000 at the end of the most recent quarter.

Other institutional investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of International Business Machines in the 2nd quarter valued at about $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 worth $15,760,430,000 after purchasing an additional 1,450,562 shares in the last quarter. Geode Capital Management LLC raised its holdings in International Business Machines by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock valued at $6,679,105,000 after buying an additional 336,069 shares during the period. Capital World Investors lifted its position in International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock valued at $6,523,720,000 after buying an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE grew its stake in International Business Machines by 7.0% during the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock worth $3,893,669,000 after buying an additional 1,049,602 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

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 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 directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.27% of the stock is currently owned by company insiders.

International Business Machines Price Performance

IBM opened at $232.60 on Thursday. The company has a fifty day simple moving average of $230.68 and a 200 day simple moving average of $246.23. The firm has a market cap of $219.14 billion, a price-to-earnings ratio of 20.64, a PEG ratio of 2.21 and a beta of 0.71. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts' consensus estimates of $2.93. The firm had revenue of $17.16 billion for 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 was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.80 EPS. Equities research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors 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 yield of 2.9%. International Business Machines's dividend payout ratio is currently 59.98%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on IBM. Wedbush set a $350.00 target price on shares of International Business Machines in a research note on Tuesday, June 2nd. Roth Capital reaffirmed a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. The Goldman Sachs Group set a $270.00 price target on International Business Machines in a report on Thursday, July 23rd. HSBC set a $175.00 price objective on International Business Machines and gave the company a "reduce" rating in a research report on Thursday, July 16th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating on shares of International Business Machines in a research report on Thursday, July 16th. Seventeen investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $265.16.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Recurring revenue provides support: IBM’s annual recurring revenue continued to grow despite a weak second quarter, reinforcing the company’s transition toward more predictable software and services revenue. The article suggests this metric could become a more important investor focus than the quarterly miss. Can This Number Push IBM Stock Higher?
• Positive Sentiment: z17 expands IBM’s AI footprint: IBM placed its z17 mainframe at Marist University’s new Innovation Incubator for AI, finance and polling research. The initiative deepens a long-standing partnership and may help showcase IBM’s mainframe and AI capabilities, although it is not expected to have a material near-term financial impact. Marist University and IBM Launch Innovation Incubator
• Positive Sentiment: Long-term AI and quantum opportunities: IBM and NASA released an open lunar foundation model, while IBM, Lockheed Martin and ETH Zurich launched a quantum innovation hub. These efforts support IBM’s positioning in scientific AI and quantum computing, but remain longer-term growth catalysts. What Do IBM Lunar AI and Quantum Hub Moves Mean for Investors?
• Neutral Sentiment: Executive comments on Meta’s Muse: Vice Chair Gary Cohn said he is uncomfortable providing personal data to Meta’s Muse AI agent and advocated outcome-focused AI regulation. The comments may reinforce IBM’s enterprise-privacy messaging, but they do not represent a new contract or direct financial catalyst for IBM. Gary Cohn on Meta’s Muse
• Negative Sentiment: Q2 shortfall and investigation remain risks: Hagens Berman said it is investigating potential securities-law violations after IBM previewed disappointing second-quarter results, including a reported shortfall tied to its z-series business. The investigation is preliminary, but it adds legal and reputational pressure following the earnings disappointment. IBM Investigation Following Z-Series Shortfall

International Business Machines 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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