International Business Machines Corporation $IBM Stake Reduced by Investment House LLC

Key Points

• Investment House LLC reduced its IBM stake by 25.3% in the third quarter, selling 3,625 shares and retaining 10,680 shares valued at approximately $2.35 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported a strong third quarter, with revenue rising 4.7% year over year to $17.1 billion and adjusted EPS of $2.95, beating analyst expectations. The company also generated about $3 billion in free cash flow and raised its full-year cash-flow outlook.
• Analysts remain broadly positive, with IBM holding a “Moderate Buy” consensus rating and an average price target of $266.12, though concerns persist over valuation, unchanged revenue guidance and the durability of software and AI-driven growth.

Investment House LLC cut its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 25.3% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 10,680 shares of the technology company's stock after selling 3,625 shares during the period. Investment House LLC's holdings in International Business Machines were worth $2,349,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Harborfront Financial Group LLC bought a new position in International Business Machines during the second quarter worth $27,000. Hara Capital LLC acquired a new position in International Business Machines in the second quarter valued at $28,000. Bare Financial Services Inc lifted its holdings 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 buying an additional 55 shares during the period. Portus Wealth Advisors LLC bought a new stake in International Business Machines during the first quarter valued at $26,000. Finally, Caitlin John LLC bought a new stake in International Business Machines during the second quarter valued at $35,000. Institutional investors and hedge funds own 58.96% of the company's stock.

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.27% of the company's stock.

International Business Machines News Roundup

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

• Positive Sentiment: IBM delivered a strong third quarter. Revenue increased 4.7% year over year to $17.1 billion, while adjusted earnings of $2.95 per share exceeded expectations near $2.85. Software revenue rose 8% to $7.8 billion, Infrastructure revenue increased 4%, and delayed contracts returned. Reuters IBM earnings article
• Positive Sentiment: Cash generation and margins improved. IBM reported approximately $3.0 billion in free cash flow for the quarter and raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year. The board also declared a quarterly dividend of $1.69 per share. IBM Q3 revenue and cash flow article
• Positive Sentiment: Analysts raised targets after the report. JPMorgan lifted its target to $269, Stifel raised its target to $260 and RBC set a $270 target while reaffirming an outperform rating, signaling confidence that software, Red Hat and infrastructure demand can support further gains.
• Neutral Sentiment: Investors are looking for proof that the rebound can continue. Management said second-quarter softness reflected timing rather than weak demand, but the market remains focused on whether software growth—partly helped by the Confluent acquisition—and Red Hat momentum will persist in the fourth quarter. Fool IBM earnings analysis
• Negative Sentiment: Guidance and AI commentary weighed on sentiment. IBM maintained its full-year revenue-growth outlook rather than raising it, and CEO Arvind Krishna said lower-cost open AI models can deliver much of the performance of frontier models. Investors interpreted that view as a potential constraint on premium AI spending and IBM’s longer-term growth opportunity. Reuters IBM stock reaction article
• Negative Sentiment: Valuation remains a concern. Commentary from Seeking Alpha and Zacks characterized IBM as a high-margin company with comparatively modest growth, consulting challenges, meaningful debt and a premium valuation. That combination limits the margin for execution mistakes and helps explain why the stock has not sustained its post-earnings advance. Seeking Alpha IBM valuation article

International Business Machines Price Performance

Shares of NYSE IBM opened at $252.42 on Friday. The firm has a market capitalization of $237.81 billion, a P/E ratio of 20.43, a P/E/G ratio of 2.42 and a beta of 0.73. The firm's 50-day moving average price is $232.68 and its 200-day moving average price is $243.63. 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 Corporation has a 1-year low of $199.19 and a 1-year high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, beating the consensus estimate of $2.85 by $0.10. The company 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 35.08% and a net margin of 15.99%. The firm's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same period last year, the business posted $2.65 EPS. Equities research analysts anticipate that International Business Machines Corporation will post 12.34 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be issued a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a yield of 2.7%. International Business Machines's dividend payout ratio is presently 59.98%.

Analyst Upgrades and Downgrades

IBM has been the subject of a number of recent analyst reports. The Goldman Sachs Group reiterated a "buy" rating and set a $300.00 price target on shares of International Business Machines in a report on Thursday. Royal Bank Of Canada reissued an "outperform" rating and issued a $270.00 price objective on shares of International Business Machines in a research note on Thursday. HSBC cut their target price on International Business Machines from $175.00 to $174.00 in a research report on Friday, July 24th. Oppenheimer cut International Business Machines from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 15th. Finally, Stifel Nicolaus lifted their target price on International Business Machines from $235.00 to $260.00 and gave the stock a "buy" rating in a report on Thursday. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $266.12.

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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