International Business Machines Corporation $IBM Shares Sold by Zhang Financial LLC

Key Points

• Zhang Financial LLC reduced its IBM stake by 37.5% in the second quarter, selling 8,751 shares and retaining 14,588 shares valued at approximately $4.1 million. Institutional investors collectively own 58.96% of IBM.
• IBM’s latest quarterly revenue of $17.16 billion fell short of the $17.46 billion analyst expectation, although adjusted EPS of $2.93 matched consensus; revenue still increased 1.1% year over year.
• Analysts maintain a consensus “Moderate Buy” rating with a $265.40 target price, while IBM offers a quarterly dividend of $1.69 per share, representing a 2.9% yield.

Zhang Financial LLC cut its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 37.5% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 14,588 shares of the technology company's stock after selling 8,751 shares during the quarter. Zhang Financial LLC's holdings in International Business Machines were worth $4,102,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Orca Wealth Management LLC lifted its stake in International Business Machines by 3.7% in the 4th quarter. Orca Wealth Management LLC now owns 975 shares of the technology company's stock worth $285,000 after purchasing an additional 35 shares in the last quarter. Friday Financial grew its position in shares of International Business Machines by 1.9% in the second quarter. Friday Financial now owns 1,903 shares of the technology company's stock valued at $583,000 after purchasing an additional 35 shares in the last quarter. First Command Advisory Services Inc. grew its position in shares of International Business Machines by 1.1% in the fourth quarter. First Command Advisory Services Inc. now owns 3,459 shares of the technology company's stock valued at $1,025,000 after purchasing an additional 36 shares in the last quarter. Washington Trust Bank increased its holdings in shares of International Business Machines by 2.2% in the fourth quarter. Washington Trust Bank now owns 1,712 shares of the technology company's stock valued at $507,000 after purchasing an additional 37 shares during the last quarter. Finally, HORAN Wealth LLC lifted its position in International Business Machines by 1.3% during the fourth quarter. HORAN Wealth LLC now owns 2,851 shares of the technology company's stock worth $844,000 after buying an additional 37 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines News Summary

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

IBM has been the topic of a number of recent research reports. Susquehanna lowered their price objective on International Business Machines from $303.00 to $225.00 and set a "neutral" rating on the stock in a research note on Friday, July 24th. BMO Capital Markets cut their target price on International Business Machines from $270.00 to $230.00 and set a "market perform" rating for the company in a research note on Thursday, July 23rd. KeyCorp lowered International Business Machines to a "sector weight" rating in a report on Tuesday, June 23rd. Weiss Ratings cut shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 24th. Finally, Morgan Stanley dropped their price objective on shares of International Business Machines from $293.00 to $190.00 and set an "equal weight" rating for the company in a report on Thursday, July 23rd. Sixteen research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $265.40.

Insider Transactions at International Business Machines

In related news, SVP Robert David Thomas sold 25,000 shares of the business's stock in a transaction dated 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 sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.27% of the company's stock.

International Business Machines Trading Down 1.3%

Shares of International Business Machines stock opened at $235.78 on Friday. The firm has a market capitalization of $222.14 billion, a price-to-earnings ratio of 20.92, a PEG ratio of 2.31 and a beta of 0.70. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a 50 day moving average of $244.57 and a 200 day moving average of $248.65.

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

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is presently 59.98%.

About International Business Machines

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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