Levin Capital Strategies L.P. Grows Position in International Business Machines Corporation $IBM

Key Points

• Levin Capital Strategies more than doubled its IBM position to 60,416 shares worth approximately $16.99 million during the second quarter. Institutional investors collectively own 58.96% of IBM’s outstanding stock.
• IBM’s latest quarterly results matched earnings expectations at $2.93 per share, but revenue of $17.16 billion fell short of forecasts. Analysts maintain a “Moderate Buy” consensus, with an average price target of $265.40.
• IBM declared a quarterly dividend of $1.69 per share, equivalent to an annualized $6.76 payout and a 2.9% yield. Investors continue to weigh the company’s AI, mainframe and quantum-computing opportunities against slower revenue growth and recent legal uncertainty.

Levin Capital Strategies L.P. grew its stake in International Business Machines Corporation (NYSE:IBM - Free Report) by 113.8% during the second quarter, according to its most recent 13F filing with the SEC. The firm owned 60,416 shares of the technology company's stock after acquiring an additional 32,158 shares during the period. International Business Machines comprises 1.1% of Levin Capital Strategies L.P.'s investment portfolio, making the stock its 24th biggest holding. Levin Capital Strategies L.P.'s holdings in International Business Machines were worth $16,989,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of IBM. Basepoint Wealth LLC acquired a new position in International Business Machines during the 4th quarter worth about $25,000. Portus Wealth Advisors LLC acquired a new position in International Business Machines during the 1st quarter worth approximately $26,000. Cornerstone Financial Management LLC acquired a new position in shares of International Business Machines during the fourth quarter worth $28,000. SWAN Capital LLC acquired a new position in shares of International Business Machines during the 3rd quarter worth about $28,000. Finally, Bare Financial Services Inc increased its stake 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 purchasing an additional 55 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Price Performance

Shares of NYSE IBM opened at $235.78 on Monday. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The stock has a fifty day moving average price of $244.57 and a 200 day moving average price of $248.32. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The company has a market cap of $222.14 billion, a PE ratio of 20.92, a P/E/G ratio of 2.31 and a beta of 0.70.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines's revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.80 EPS. Sell-side analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current 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. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines's payout ratio is 59.98%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on IBM shares. Morgan Stanley dropped their price objective on International Business Machines from $293.00 to $190.00 and set an "equal weight" rating on the stock in a report on Thursday, July 23rd. Oppenheimer downgraded shares of International Business Machines from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 15th. Barclays lowered their price objective on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating on the stock in a research report on Thursday, July 23rd. Royal Bank Of Canada restated an "outperform" rating and issued a $270.00 price objective on shares of International Business Machines in a research note on Tuesday, July 21st. Finally, Citigroup reduced their target price on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a report on Friday, July 24th. Sixteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $265.40.

Insider Transactions at International Business Machines

In related news, SVP Robert David Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The shares were 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 document filed with the SEC, which is available at this link. 0.27% of the stock is owned by corporate insiders.

International Business Machines 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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