International Business Machines Corporation $IBM Shares Sold by Convergence Investment Partners LLC

Key Points

• Convergence Investment Partners LLC cut its IBM stake by 15.6% in the first quarter, selling 4,991 shares and leaving it with 26,946 shares worth about $6.53 million.
• IBM has been hit by negative news flow after a surprise Q2 profit warning and preliminary results triggered analyst target cuts, a sharp stock drop, and concerns about weaker near-term guidance and AI-related spending trends.
• Despite the selloff, IBM recently raised its quarterly dividend to $1.69 per share, and some analysts still see upside if the company can restore confidence in software, consulting, and AI execution.

Convergence Investment Partners LLC lessened its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 15.6% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 26,946 shares of the technology company's stock after selling 4,991 shares during the quarter. International Business Machines comprises 1.1% of Convergence Investment Partners LLC's holdings, making the stock its 18th largest position. Convergence Investment Partners LLC's holdings in International Business Machines were worth $6,531,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the company. Basepoint Wealth LLC acquired a new stake in International Business Machines during the 4th quarter worth $25,000. Family CFO Inc acquired a new stake in shares of International Business Machines in the fourth quarter valued at about $25,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines in the fourth quarter valued at about $28,000. Cornerstone Financial Management LLC purchased a new position in shares of International Business Machines in the fourth quarter worth about $28,000. Finally, SWAN Capital LLC acquired a new position in International Business Machines during the third quarter worth about $28,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Key International Business Machines News

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

• Negative Sentiment: IBM’s surprise Q2 pre-announcement and profit warning triggered multiple analyst target cuts, reinforcing fears that near-term earnings and guidance may be weaker than expected. IBM Stock: Analysts Cut Targets After Company's Surprise Profit Warning
• Negative Sentiment: Several reports say IBM’s recent plunge erased tens of billions in market value, with investors worried the company misjudged the pace of AI budget shifts and may face additional downside if full-year guidance is reduced. Why Did IBM Stock Plunge 25% in One Day? Preliminary Q2 Results Were Weak, But Not Terrible
• Negative Sentiment: Law firms have launched investigations and shareholder-rights actions over alleged misrepresentations tied to IBM Z product slowdown disclosures, adding legal overhang to the stock. IBM Legal News: IBM Investigated for Misrepresentations about its IBM Z Product Slowdown – Investors Notified to Contact BFA Law
• Neutral Sentiment: Some analysts remain constructive, arguing IBM’s current valuation now looks much cheaper after the selloff and that the stock could rebound if management restores confidence on software, consulting, and AI execution. Could IBM Be Worth More Broken Apart? Stifel Runs the Numbers
• Neutral Sentiment: Preview pieces ahead of the full Q2 report suggest IBM’s consulting and software revenue trends may still benefit from AI, cloud, and cybersecurity demand, but investors are waiting for hard evidence after the warning. Can Y/Y Higher Consulting Revenues Benefit IBM's Q2 Earnings?

International Business Machines Price Performance

International Business Machines stock opened at $213.18 on Tuesday. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The company has a 50-day moving average price of $263.63 and a 200 day moving average price of $262.66. International Business Machines Corporation has a 12-month low of $204.44 and a 12-month high of $332.46. The stock has a market cap of $200.36 billion, a P/E ratio of 18.85, a PEG ratio of 2.28 and a beta of 0.68.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same period in the previous year, the business posted $1.60 EPS. International Business Machines's revenue was up 9.5% on a year-over-year basis. Sell-side analysts anticipate that International Business Machines Corporation will post 12.28 earnings per share for the current year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were issued a $1.69 dividend. This is a boost from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Friday, May 8th. International Business Machines's payout ratio is currently 59.77%.

Analyst Ratings Changes

IBM has been the subject of several research reports. Citigroup dropped their price objective on shares of International Business Machines from $375.00 to $255.00 and set a "buy" rating for the company in a research note on Friday. Needham & Company LLC began coverage on shares of International Business Machines in a research note on Wednesday, June 3rd. They issued a "buy" rating on the stock. Bank of America boosted their target price on International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a report on Monday, July 6th. Sanford C. Bernstein reiterated a "market perform" rating on shares of International Business Machines in a research report on Thursday. Finally, Wedbush set a $350.00 price objective on International Business Machines in a research note on Tuesday, June 2nd. Fifteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $289.83.

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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