International Business Machines Corporation $IBM Shares Sold by Mitchell Capital Management Co.

Key Points

• Mitchell Capital Management cut its IBM position by 92.9% in the second quarter, selling 9,966 shares and retaining 762 shares valued at approximately $214,000. Institutional investors collectively own 58.96% of IBM.
• IBM’s latest quarterly earnings matched expectations at $2.93 per share, but revenue of $17.16 billion fell short of the $17.46 billion consensus estimate, highlighting ongoing growth and AI monetization concerns.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and a $265.40 price target. IBM also offers a quarterly dividend of $1.69, equivalent to a 2.9% annualized yield.

Mitchell Capital Management Co. decreased its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 92.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 762 shares of the technology company's stock after selling 9,966 shares during the period. Mitchell Capital Management Co.'s holdings in International Business Machines were worth $214,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in IBM. State Street Corp raised its stake in shares of International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock worth $16,290,452,000 after buying an additional 518,321 shares in the last quarter. Geode Capital Management LLC boosted its stake in International Business Machines by 1.5% during 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 in the last quarter. Capital World Investors grew its holdings 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 worth $6,523,720,000 after acquiring an additional 4,976,756 shares during the period. Bank of America Corp DE raised its position in International Business Machines by 7.0% in 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 acquiring an additional 1,049,602 shares in the last quarter. Finally, Norges Bank bought a new stake in International Business Machines in the fourth quarter worth about $2,446,429,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Needham & Company LLC initiated coverage on shares of International Business Machines in a research report on Wednesday, June 3rd. They set a "buy" rating for the company. Roth Capital restated a "buy" rating on shares of International Business Machines in a report on Wednesday, June 3rd. Royal Bank Of Canada restated an "outperform" rating and set a $270.00 target price on shares of International Business Machines in a report on Tuesday, July 21st. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of International Business Machines in a report on Thursday, July 16th. Finally, Barclays cut their price objective 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. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $265.40.

Insider Activity

In other news, SVP Robert David Thomas sold 25,000 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were 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 directly owned 47,800 shares of the company's stock, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.27% of the stock is owned by company insiders.

International Business Machines Price Performance

IBM opened at $235.78 on Monday. The firm has a market capitalization of $222.14 billion, a P/E ratio of 20.92, a PEG ratio of 2.31 and a beta of 0.70. The stock has a fifty day moving average of $244.57 and a 200-day moving average of $248.32. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a 12-month low of $199.19 and a 12-month high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts' consensus estimates of $2.93. The business had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.International Business Machines's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.80 earnings per share. Equities analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date is 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 is currently 59.98%.

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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