International Business Machines Corporation $IBM Stake Cut by Robeco Institutional Asset Management B.V.

Key Points

• Robeco Institutional Asset Management cut its IBM stake by 77.6% in the third quarter, selling 431,793 shares and retaining 124,960 shares valued at approximately $27.5 million.
• IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded estimates; software growth, infrastructure demand and margins improved.
• IBM raised its free-cash-flow outlook and declared a quarterly dividend of $1.69 per share, but investors remain cautious about valuation, acquisition-driven software growth and an unchanged revenue outlook.

Robeco Institutional Asset Management B.V. lowered its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 77.6% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 124,960 shares of the technology company's stock after selling 431,793 shares during the quarter. Robeco Institutional Asset Management B.V.'s holdings in International Business Machines were worth $27,482,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines in the first quarter valued at $26,000. Harborfront Financial Group LLC acquired a new stake in International Business Machines during the second quarter worth approximately $27,000. Hara Capital LLC acquired a new stake in International Business Machines during the second quarter worth approximately $28,000. Bare Financial Services Inc lifted its position in International Business Machines by 114.6% in the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock valued at $29,000 after acquiring an additional 55 shares during the last quarter. Finally, Caitlin John LLC purchased a new stake in International Business Machines in the second quarter valued at $35,000. Institutional investors and hedge funds own 58.96% of the company's stock.

Key International Business Machines News

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

• Positive Sentiment: IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded analyst expectations. Software growth accelerated to 9% at constant currency, infrastructure demand improved, and operating pretax margins expanded by 70 basis points. IBM Beats Q3 Earnings Estimates on Software, Infrastructure Growth
• Positive Sentiment: Management raised its full-year free-cash-flow outlook, supported by stronger software performance, Red Hat demand and enterprise AI activity. Transaction-processing revenue also rose 10%, suggesting improving demand in key recurring-revenue businesses. IBM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts raised their earnings estimates or price targets following the results. Erste Group increased its FY2027 EPS forecast to $13.40 from $13.13, while JPMorgan, RBC and Stifel reiterated positive ratings and lifted targets. IBM Analyst Estimates and Ratings
• Neutral Sentiment: IBM’s updated FY2026 revenue guidance of $70.2 billion to $70.9 billion broadly brackets the $70.4 billion consensus estimate. The outlook was not meaningfully raised, leaving investors focused on whether the software rebound can continue.
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, or $6.76 annualized, reinforcing its appeal to income-oriented investors. A separate dividend-stock article highlighted IBM’s decades-long record of payout increases. IBM Declares $1.69 Dividend
• Negative Sentiment: Investors remain concerned that roughly half of the software growth benefited from the Confluent acquisition and that management’s unchanged revenue outlook implies slower growth later in the year. IBM’s comments that lower-cost, open-weight AI models can deliver comparable performance also raised questions about pricing power and AI monetization. Why Isn’t IBM’s Stock Bouncing Back After Strong Earnings Results?
• Negative Sentiment: Some analysts view IBM’s valuation as demanding relative to its modest underlying growth, while slower Consulting performance, debt and uncertainty over the durability of the software rebound could limit further upside.

International Business Machines Trading Up 0.6%

Shares of IBM stock opened at $253.69 on Friday. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The firm's 50-day simple moving average is $233.06 and its 200-day simple moving average is $243.70. The firm has a market cap of $239.01 billion, a P/E ratio of 21.63, a PEG ratio of 2.42 and a beta of 0.73. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.74.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, topping analysts' consensus estimates of $2.85 by $0.10. The business had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The business's revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm posted $2.65 EPS. As a group, equities analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.7%. The ex-dividend date is Tuesday, November 10th. International Business Machines's dividend payout ratio is currently 57.63%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on IBM shares. Morgan Stanley increased their price objective on International Business Machines from $238.00 to $240.00 and gave the company an "equal weight" rating in a report on Thursday. The Goldman Sachs Group restated a "buy" rating and issued a $300.00 target price on shares of International Business Machines in a research note on Thursday. Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a report on Saturday. Craig Hallum assumed coverage on shares of International Business Machines in a research report on Wednesday, August 19th. They issued a "buy" rating on the stock. Finally, Citic Securities lifted their price objective on International Business Machines from $294.00 to $297.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Twenty investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, International Business Machines presently has a consensus rating of "Moderate Buy" and an average price target of $266.12.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction dated 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 approximately $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.27% of the company's stock.

International Business Machines Company Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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