Kimelman & Baird LLC Invests $30.40 Million in International Business Machines Corporation $IBM

Key Points

• Kimelman & Baird LLC acquired 108,096 IBM shares worth approximately $30.4 million, making IBM 1.6% of its portfolio. Institutional investors collectively own 58.96% of the company.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $265.90 price target, although several firms recently reduced their targets or downgraded the stock.
• IBM’s latest quarterly earnings matched expectations at $2.93 per share, but revenue of $17.16 billion fell short of estimates. The company pays a quarterly dividend of $1.69 per share, representing a 2.9% yield.

Kimelman & Baird LLC purchased a new stake in International Business Machines Corporation (NYSE:IBM - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 108,096 shares of the technology company's stock, valued at approximately $30,398,000. International Business Machines makes up 1.6% of Kimelman & Baird LLC's investment portfolio, making the stock its 27th biggest holding.

Several other large investors have also added to or reduced their stakes in the stock. Basepoint Wealth LLC bought a new stake in shares of International Business Machines during the fourth quarter valued at about $25,000. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines in the first quarter valued at approximately $26,000. Harborfront Financial Group LLC purchased a new position in International Business Machines during the second quarter valued at approximately $27,000. Cornerstone Financial Management LLC bought a new stake in International Business Machines during the 4th quarter worth approximately $28,000. Finally, Hara Capital LLC bought a new stake in International Business Machines during the 2nd quarter worth approximately $28,000. Institutional investors own 58.96% of the company's stock.

Wall Street Analysts Forecast Growth

IBM has been the subject of several analyst reports. Oppenheimer downgraded shares of International Business Machines from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 15th. JPMorgan Chase & Co. decreased their price target on shares of International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday, July 17th. Craig Hallum started coverage on International Business Machines in a research report on Wednesday, August 19th. They issued a "buy" rating on the stock. Royal Bank Of Canada reissued an "outperform" rating and set a $270.00 price objective on shares of International Business Machines in a research note on Tuesday, July 21st. Finally, Argus reduced their target price on International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a research report on Thursday, July 16th. Sixteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $265.90.

International Business Machines Stock Performance

International Business Machines stock opened at $234.06 on Friday. 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 market cap of $220.51 billion, a P/E ratio of 20.77, a price-to-earnings-growth ratio of 2.29 and a beta of 0.71. The firm's fifty day moving average price is $237.79 and its 200-day moving average price is $246.38.

International Business Machines (NYSE:IBM - Get Free Report) last announced 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. The company had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm's quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.80 earnings per share. On average, equities research analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

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

Insider Activity at International Business Machines

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 transaction, the senior vice president directly owned 47,800 shares of the company's stock, 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 is accessible through this link. Company insiders own 0.27% of the company's stock.

More International Business Machines News

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

• Positive Sentiment: IBM and Lockheed Martin announced a quantum innovation hub at ETH Zurich, supported by Switzerland’s defense-procurement offset program. The initiative will deploy Switzerland’s first IBM Quantum System Two at the Swiss National Supercomputing Centre, giving IBM a multi-year platform for quantum-computing research in areas such as sensing and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Positive Sentiment: IBM and NASA released an open-source Lunar Foundation Model trained on extensive lunar-observation data. The model reportedly improves identification of lunar features, including potential ice deposits and craters, highlighting IBM’s AI capabilities and government-research relationships, although the near-term revenue impact is likely limited. IBM and NASA Release Open-Source AI Model
• Positive Sentiment: Market commentary continues to identify IBM as an established-company route to AI and quantum exposure, supported by its hybrid-cloud, enterprise-software and consulting businesses. A Cleveland Clinic, RIKEN and IBM team was also named a finalist for the ACM Gordon Bell Prize for quantum-centric supercomputing research. IBM Team Advances to Gordon Bell Prize Finals
• Neutral Sentiment: A shareholder-rights law firm announced an investigation into IBM related to its previously previewed second-quarter results. Such notices are often solicitation-driven and do not establish wrongdoing, but they can add headline and legal-risk pressure. Law Firm Investigation Report
• Negative Sentiment: IBM’s latest quarterly results showed earnings in line with estimates but revenue below expectations, reinforcing concerns that growth is modest. Analysts also continue to view competing AI-cloud names as having stronger near-term growth and momentum.
• Negative Sentiment: Investors remain focused on IBM’s earlier AI-security investment and whether related partnerships will translate into durable software revenue. Those questions, combined with a premium valuation and broader-market weakness, appear to have outweighed the longer-term quantum and AI announcements. IBM AI Security Investment

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.

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