International Business Machines Corporation $IBM Stock: Birch Hill Investment Advisors LLC Decreases Position

Key Points

• Birch Hill Investment Advisors reduced its IBM position by 1.8% in the third quarter, selling 5,169 shares and retaining 284,328 shares valued at approximately $62.5 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly EPS of $2.93, matching analyst expectations, while revenue reached $17.16 billion, up 1.1% year over year but below estimates. The company also pays a quarterly dividend of $1.69 per share, representing an annualized yield of about 2.9%.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $254.96, although several firms recently lowered their targets amid valuation, debt and limited dividend-growth concerns.

Birch Hill Investment Advisors LLC cut its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 1.8% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 284,328 shares of the technology company's stock after selling 5,169 shares during the period. International Business Machines comprises about 2.7% of Birch Hill Investment Advisors LLC's investment portfolio, making the stock its 13th biggest holding. Birch Hill Investment Advisors LLC's holdings in International Business Machines were worth $62,532,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of International Business Machines in the 2nd quarter worth approximately $21,586,659,000. State Street Corp boosted its stake in International Business Machines by 2.7% during the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company's stock valued at $15,760,430,000 after purchasing an additional 1,450,562 shares in the last quarter. Bank of America Corp DE bought a new position in shares of International Business Machines in the second quarter valued at $4,214,868,000. Bank of New York Mellon Corp acquired a new stake in shares of International Business Machines during the second quarter worth $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in International Business Machines by 0.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company's stock worth $2,143,245,000 after purchasing an additional 53,388 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Stock Down 0.7%

NYSE:IBM opened at $232.58 on Friday. The stock's fifty day moving average price is $231.99 and its two-hundred day moving average price is $243.58. The company has a market cap of $219.12 billion, a price-to-earnings ratio of 20.64, a P/E/G ratio of 2.21 and a beta of 0.73. International Business Machines Corporation has a 52-week low of $199.19 and a 52-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.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts' consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the business earned $2.80 EPS. The business's quarterly revenue was up 1.1% compared to the same quarter last year. On average, analysts anticipate that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Monday, August 10th. International Business Machines's dividend payout ratio is 59.98%.

Key International Business Machines News

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

• Positive Sentiment: Bank of America expects IBM to deliver a modest third-quarter earnings beat while maintaining its 2026 outlook. The bank reiterated its Buy rating and $280 price target, citing higher-margin software, improving profitability and strong free cash flow. IBM poised for modest third-quarter beat, says Bank of America
• Positive Sentiment: Analysts expect software revenue to benefit from AI innovation, strategic partnerships and expanding enterprise-cloud capabilities. Consulting revenue is also projected to show modest growth, supported by technology demand, AI partnerships and cybersecurity-related expansion. IBM software revenue earnings preview
• Positive Sentiment: IBM and Siemens are collaborating on IBM’s nanostack transistor architecture, combining IBM semiconductor research with Siemens’ design-automation and manufacturing software. The initiative reinforces IBM’s long-term investment in advanced chips and computing technology. Siemens joins IBM nanostack research effort
• Neutral Sentiment: IBM reports third-quarter results next week, and options traders are pricing in a potential move of roughly 8% after the release. The elevated implied volatility signals substantial uncertainty rather than a clearly bullish or bearish expectation. IBM options market expects major post-earnings move
• Neutral Sentiment: Morgan Stanley raised its IBM price target to $238 but maintained an Equal Weight rating, implying limited near-term upside at the referenced price. RBC separately reaffirmed its Outperform rating. RBC reaffirms IBM Outperform rating
• Negative Sentiment: Investor concerns remain about IBM’s valuation, rising debt and limited dividend growth. Commentary noted that the company’s long record of annual dividend increases has recently involved only small raises, potentially constraining its appeal to income-focused investors while it funds AI initiatives. IBM dividend and debt concerns

Analyst Ratings Changes

IBM has been the topic of a number of research reports. Daiwa Securities Group dropped their target price on International Business Machines from $247.00 to $217.00 and set a "neutral" rating on the stock in a report on Wednesday, July 29th. Argus lowered their price objective on International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a report on Thursday, July 16th. Jefferies Financial Group decreased their price objective on shares of International Business Machines from $320.00 to $260.00 and set a "buy" rating for the company in a report on Tuesday, July 21st. Citigroup cut their price objective on International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a research report on Friday, July 24th. Finally, Sanford C. Bernstein dropped their price target on International Business Machines from $280.00 to $230.00 and set a "market perform" rating on the stock in a research report on Thursday, July 23rd. Nineteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, International Business Machines presently has a consensus rating of "Moderate Buy" and a consensus target price of $254.96.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of the company'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 completion of the transaction, 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 filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.27% of the stock is owned by corporate insiders.

About International Business Machines

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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