Lynch Asset Management Inc. Purchases Shares of 13,350 International Business Machines Corporation $IBM

Key Points

• Lynch Asset Management purchased 13,350 IBM shares worth approximately $3.75 million, making IBM about 1% of its portfolio and its 28th-largest holding.
• Institutional interest remains substantial, with hedge funds and other large investors increasing or initiating positions; institutions and hedge funds collectively own 58.96% of IBM.
• IBM reported quarterly EPS in line with estimates at $2.93, while revenue of $17.16 billion fell short of forecasts. The company declared a $1.69 quarterly dividend, equal to a 2.9% annualized yield, and analysts maintain a “Moderate Buy” consensus with an average price target of $265.90.

Lynch Asset Management Inc. purchased a new stake in International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 13,350 shares of the technology company's stock, valued at approximately $3,754,000. International Business Machines accounts for about 1.0% of Lynch Asset Management Inc.'s portfolio, making the stock its 28th largest position.

Several other large investors have also recently made changes to their positions in IBM. Bank of New York Mellon Corp purchased a new stake in International Business Machines in the second quarter valued at approximately $2,606,782,000. Norges Bank purchased a new position in shares of International Business Machines during the fourth quarter worth $2,446,429,000. Capital World Investors boosted its position in shares of International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock worth $6,523,720,000 after buying an additional 4,976,756 shares during the period. Ascentis Wealth Management LLC grew its stake in shares of International Business Machines by 27,169.6% in the second quarter. Ascentis Wealth Management LLC now owns 3,224,635 shares of the technology company's stock valued at $906,800,000 after buying an additional 3,212,810 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of International Business Machines by 83.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company's stock valued at $1,663,847,000 after buying an additional 2,553,552 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Trading Down 1.2%

NYSE:IBM opened at $231.12 on Wednesday. International Business Machines Corporation has a 12-month low of $199.19 and a 12-month high of $332.46. The firm has a market cap of $217.75 billion, a PE ratio of 20.51, a price-to-earnings-growth ratio of 2.30 and a beta of 0.70. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The stock has a fifty day moving average price of $243.51 and a 200 day moving average price of $247.61.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting the consensus estimate of $2.93. The company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.International Business Machines's revenue was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.80 EPS. 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 company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines's payout ratio is currently 59.98%.

International Business Machines News Roundup

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

Analysts Set New Price Targets

Several research firms recently issued reports on IBM. BMO Capital Markets decreased their target price on International Business Machines from $270.00 to $230.00 and set a "market perform" rating on the stock in a research note on Thursday, July 23rd. Argus dropped 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. Wedbush set a $350.00 price target on shares of International Business Machines in a research note on Tuesday, June 2nd. Wall Street Zen raised shares of International Business Machines from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, Barclays lowered their price objective on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating for the company in a research note on Thursday, July 23rd. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $265.90.

Insider Buying and Selling

In other International Business Machines news, SVP Robert David Thomas sold 25,000 shares of the business's 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 transaction, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.27% of the stock is owned by company insiders.

About International Business Machines

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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