Longfellow Investment Management Co. LLC Makes New $1.63 Million Investment in International Business Machines Corporation $IBM

Key Points

• Longfellow Investment Management acquired 5,785 IBM shares worth approximately $1.63 million in the second quarter. Institutional investors collectively own 58.96% of IBM’s stock.
• IBM’s outlook is mixed: analysts maintain a consensus “Moderate Buy” rating with a $265.90 price target, while concerns include a recent revenue miss, AI-driven disruption to legacy services and executive stock sales.
• IBM reported quarterly EPS in line with estimates at $2.93, though revenue of $17.16 billion fell short of forecasts. The company also declared a $1.69 quarterly dividend, equivalent to a 2.9% annualized yield.

Longfellow Investment Management Co. LLC acquired a new stake in International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 5,785 shares of the technology company's stock, valued at approximately $1,627,000.

Other hedge funds have also made changes to their positions in the company. Basepoint Wealth LLC acquired a new position in International Business Machines in the 4th quarter valued at about $25,000. Portus Wealth Advisors LLC acquired a new stake in International Business Machines during the 1st quarter worth approximately $26,000. Cornerstone Financial Management LLC purchased a new position in shares of International Business Machines in the 4th quarter valued at approximately $28,000. SWAN Capital LLC acquired a new position in shares of International Business Machines in the third quarter valued at approximately $28,000. Finally, Bare Financial Services Inc increased its holdings in shares of 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 period. Institutional investors and hedge funds own 58.96% 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’s acquisition of HRL Laboratories adds silicon-spin qubit, materials and manufacturing expertise that could improve its ability to develop scalable quantum-computing systems. Analysts cited upcoming quantum catalysts, and Susquehanna raised its price target to $235, although it maintained a cautious view. Can IBM’s HRL Acquisition Boost Its Quantum Computing Capabilities?
• Positive Sentiment: A technical analysis article said IBM remains in a longer-term uptrend and could resume advancing if shares clear resistance near $239. A breakout would signal improved buying momentum, though this is a technical rather than fundamental catalyst. Stock of the Day: Will IBM Break Out and Head Higher?
• Neutral Sentiment: New market reports identify IBM as a participant in expanding enterprise blockchain, UNIX, business service management, computer-based sensing, biological computing and high-throughput computing markets. These reports point to broad industry growth but provide limited evidence of immediate revenue or earnings impact for IBM. IBM Emerges as a Leading Enterprise Blockchain Provider
• Negative Sentiment: IBM’s reported year-to-date decline reflects concerns about AI-driven disruption to legacy services, pricing pressure and downward earnings estimates. Hybrid cloud and watsonx remain potential offsets, but investors are questioning whether growth in those businesses can compensate for weakness elsewhere. IBM Slumps 21% YTD: Time to Reassess the Stock?
• Negative Sentiment: Coverage also highlighted IBM’s revenue miss, which contributed to a sharp selloff, and noted that the stock has underperformed the S&P 500. A pending securities-fraud investigation and a senior executive’s multimillion-dollar stock sale add further overhang, although neither necessarily changes IBM’s underlying business outlook. IBM Securities Fraud Investigation

Analyst Ratings Changes

IBM has been the subject of several recent research reports. Piper Sandler raised International Business Machines to an "overweight" rating in a report on Tuesday, June 23rd. Jefferies Financial Group reduced their target price on shares of International Business Machines from $320.00 to $260.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Needham & Company LLC assumed coverage on shares of International Business Machines in a report on Wednesday, June 3rd. They issued a "buy" rating on the stock. Oppenheimer lowered shares of International Business Machines from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 15th. Finally, Stifel Nicolaus cut their price target on shares of International Business Machines from $290.00 to $235.00 and set a "buy" rating for the company in a report on Monday, July 20th. Sixteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, International Business Machines presently has an average rating of "Moderate Buy" and a consensus price target of $265.90.

Insider Transactions at International Business Machines

In other news, SVP Robert David Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on 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 sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.27% of the company's stock.

International Business Machines Trading Down 1.2%

NYSE:IBM opened at $231.12 on Wednesday. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year 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 fifty day moving average price of $243.51 and a two-hundred day moving average price of $247.61. The stock has a market capitalization of $217.75 billion, a price-to-earnings ratio of 20.51, a PEG ratio of 2.30 and a beta of 0.70.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting the consensus estimate of $2.93. The company had revenue of $17.16 billion for 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 business's revenue was up 1.1% on a year-over-year basis. During the same period in the previous year, the firm earned $2.80 EPS. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines's dividend payout ratio (DPR) 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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