Modern Wealth Management LLC Purchases 3,545 Shares of International Business Machines Corporation $IBM

Key Points

• Modern Wealth Management LLC increased its IBM stake by 18.1% in the first quarter, buying 3,545 more shares and bringing its total holding to 23,176 shares worth about $5.64 million.
• IBM’s latest earnings were mixed: it met EPS expectations at $2.93 per share, but revenue came in below forecasts at $17.16 billion and the company has faced pressure after weaker mainframe sales and a lowered outlook.
• The stock still has support from income-focused investors, as IBM declared a $1.69 quarterly dividend for a 3.2% annual yield, while analysts remain broadly constructive with a consensus rating of Moderate Buy.

Modern Wealth Management LLC boosted its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 18.1% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 23,176 shares of the technology company's stock after purchasing an additional 3,545 shares during the quarter. Modern Wealth Management LLC's holdings in International Business Machines were worth $5,635,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in the company. Family CFO Inc purchased a new position in shares of International Business Machines during the fourth quarter valued at $25,000. Basepoint Wealth LLC purchased a new stake in International Business Machines in the fourth quarter worth about $25,000. Portus Wealth Advisors LLC bought a new position in International Business Machines during the 1st quarter worth about $26,000. Joseph Group Capital Management purchased a new position in International Business Machines during the 4th quarter valued at about $28,000. Finally, Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines in the 4th quarter valued at about $28,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Key International Business Machines News

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

• Positive Sentiment: Unusual options activity showed strong bullish interest, with traders buying 108,601 call options on IBM, about 35% above normal call volume. This suggests some investors are betting on a rebound.
• Positive Sentiment: Citigroup lowered its price target to $245 from $255 but kept a Buy rating, implying meaningful upside from current levels and signaling that some analysts still see value in the shares.
• Positive Sentiment: IBM announced a dividend of $1.69 per share, reinforcing its appeal to income-focused investors at a time when the stock has been under pressure.
• Neutral Sentiment: Recent commentary has turned split: some analysts and strategists view the post-earnings decline as a potential long-term opportunity, while others say IBM may be stuck in a holding pattern until growth reaccelerates. IBM: The Historic Stock Rout Is A Generational Opportunity
• Neutral Sentiment: IBM is still getting support from its long-term quantum computing strategy, including the announced acquisition of HRL Laboratories, which expands its quantum R&D capabilities. That could help sentiment, but the benefit is longer term rather than immediate.
• Negative Sentiment: The main reason the stock fell sharply is IBM’s Q2 report and lowered 2026 outlook: revenue missed expectations, mainframe sales weakened, and management cut full-year constant-currency revenue growth guidance after customers shifted spending toward AI infrastructure.
• Negative Sentiment: Shortly after the earnings slump, law firms announced securities-fraud investigations tied to IBM’s disclosures about the mainframe slowdown, adding legal overhang and uncertainty for shareholders.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Piper Sandler raised shares of International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. Wall Street Zen lowered shares of International Business Machines from a "hold" rating to a "sell" rating in a report on Saturday, July 18th. Wedbush set a $350.00 target price on International Business Machines in a report on Tuesday, June 2nd. Wolfe Research cut International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd. Finally, BMO Capital Markets cut their price target on International Business Machines from $270.00 to $230.00 and set a "market perform" rating on the stock in a report on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $265.40.

International Business Machines Trading Up 3.6%

NYSE IBM opened at $214.16 on Friday. The company has a quick ratio of 0.76, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The firm has a market cap of $201.28 billion, a PE ratio of 19.00, a price-to-earnings-growth ratio of 2.24 and a beta of 0.68. The company has a 50 day moving average price of $262.92 and a 200 day moving average price of $260.50. International Business Machines Corporation has a 52 week low of $199.19 and a 52 week high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting analysts' consensus estimates of $2.93. The company had revenue of $17.16 billion during 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 for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.80 earnings per share. As a group, sell-side analysts forecast that International Business Machines Corporation will post 12.15 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given 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 dividend yield of 3.2%. International Business Machines's dividend payout ratio (DPR) is presently 59.98%.

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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