Johnson Investment Counsel Inc. Cuts Stock Position in International Business Machines Corporation $IBM

Key Points

• Johnson Investment Counsel reduced its IBM stake by 9.1% in the second quarter, selling 3,703 shares and retaining 37,084 shares valued at approximately $10.4 million. Institutional investors collectively own 58.96% of IBM.
• Analyst views remain broadly positive but mixed: IBM has a “Moderate Buy” consensus rating from 28 analysts, with an average price target of $265.40. Recent targets ranged from $245 to $350, while some firms downgraded the stock to “Market Perform” or “Hold.”
• IBM’s latest quarter delivered adjusted EPS of $2.93, in line with estimates, while revenue of $17.16 billion fell short of the $17.46 billion consensus estimate. The company declared a quarterly dividend of $1.69 per share, equivalent to a 2.9% annualized yield.

Johnson Investment Counsel Inc. cut its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 9.1% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 37,084 shares of the technology company's stock after selling 3,703 shares during the quarter. Johnson Investment Counsel Inc.'s holdings in International Business Machines were worth $10,428,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Basepoint Wealth LLC purchased a new position in International Business Machines during the 4th quarter worth $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines in the 1st quarter worth $26,000. Joseph Group Capital Management purchased a new stake in shares of International Business Machines in the fourth quarter valued at about $28,000. Cornerstone Financial Management LLC acquired a new position in shares of International Business Machines during the fourth quarter worth about $28,000. Finally, SWAN Capital LLC acquired a new position in shares of International Business Machines during the third quarter worth about $28,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Bank of America raised their price objective on shares of International Business Machines from $315.00 to $330.00 and gave the company a "buy" rating in a research report on Monday, July 6th. Citigroup dropped their target price on International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a research report on Friday, July 24th. Oppenheimer downgraded International Business Machines from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 15th. Wedbush set a $350.00 price target on International Business Machines in a report on Tuesday, June 2nd. Finally, Weiss Ratings downgraded International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, June 24th. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, International Business Machines has an average rating of "Moderate Buy" and a consensus target price of $265.40.

Key International Business Machines News

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

• Positive Sentiment: Industry research projects the global hyperscale data-center market will expand from $162.79 billion in 2024 to $608.54 billion by 2030, driven by AI, machine learning and cloud-computing demand. This supports IBM’s infrastructure, consulting and hybrid-cloud opportunities, although the report is not an IBM-specific contract announcement. Hyperscale Data Center Market Surges to $608.54 billion
• Positive Sentiment: IBM’s modular cryogenic technology is designed to help scale its quantum systems toward 1,000 programmable qubits and support its Quantum Starling plans by 2029. The development strengthens IBM’s technology narrative and long-term growth potential, though commercial revenue benefits remain several years away. Can IBM Scale Quantum Computing With Its New Cryogenic Systems?
• Positive Sentiment: A power producer and Cohesive received an award for improving workplace safety using IBM Maximo, providing third-party recognition of the software’s industrial asset-management capabilities. The item is supportive of IBM’s enterprise-software credibility but does not indicate a material near-term financial impact. CEPR and Cohesive Receive Maximo Award
• Neutral Sentiment: A Zacks review notes that IBM has risen 13.1% since its latest earnings report, indicating continued investor support after the results. However, the company’s reported revenue missed expectations while earnings per share matched estimates, leaving valuation and execution important considerations. Why Is IBM Up Since Its Last Earnings Report?
• Negative Sentiment: Bleichmar Fonti & Auld announced an investigation into potential securities-law violations related to IBM’s prior stock decline. The notice appears to be an investor-solicitation announcement rather than a finding of wrongdoing, but it can weigh on sentiment and introduce potential legal risk. IBM Ongoing Investigation

International Business Machines Stock Up 1.1%

Shares of NYSE IBM opened at $236.17 on Friday. 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 52 week low of $199.19 and a 52 week high of $332.46. The firm has a 50-day moving average price of $247.18 and a 200 day moving average price of $250.88. The stock has a market capitalization of $222.50 billion, a price-to-earnings ratio of 20.96, a price-to-earnings-growth ratio of 2.31 and a beta of 0.70.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the previous year, the firm earned $2.80 earnings per share. The firm's revenue was up 1.1% on a year-over-year basis. Equities research analysts anticipate that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a dividend of $1.69 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. International Business Machines's payout ratio is 59.98%.

International Business Machines Company 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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