National Pension Service Raises Stake in International Business Machines Corporation $IBM

Key Points

• National Pension Service increased its IBM stake by 2.8% in the second quarter, adding 64,858 shares to own 2.35 million shares valued at approximately $660.8 million. Institutional investors collectively own 58.96% of IBM.
• IBM subsidiary Anderon finalized a $1 billion CHIPS Act award to accelerate development of a U.S.-based quantum wafer foundry, strengthening IBM’s long-term quantum-computing strategy but requiring significant execution before producing material earnings benefits.
• IBM’s latest quarter matched earnings expectations at $2.93 per share but missed revenue estimates, reporting $17.16 billion versus $17.46 billion expected. Analysts maintain a “Moderate Buy” consensus with an average price target of $265.16, while recent profit-taking and technical resistance have pressured the shares.

National Pension Service increased its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 2.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,349,975 shares of the technology company's stock after acquiring an additional 64,858 shares during the period. National Pension Service owned approximately 0.25% of International Business Machines worth $660,836,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of IBM. BlackRock Inc. purchased a new position in shares of International Business Machines during the second quarter valued at approximately $21,586,659,000. State Street Corp grew its stake in shares of International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock worth $16,290,452,000 after buying an additional 518,321 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of International Business Machines by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock worth $6,679,105,000 after buying an additional 336,069 shares during the last quarter. Capital World Investors increased its position in International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock valued at $6,523,720,000 after buying an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE increased its position in International Business Machines by 7.0% during the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock valued at $3,893,669,000 after buying an additional 1,049,602 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM subsidiary Anderon finalized a $1 billion CHIPS and Science Act award from the U.S. Department of Commerce to accelerate development of a U.S.-based, pure-play quantum wafer foundry. The funding strengthens IBM’s position in quantum infrastructure and could create longer-term strategic opportunities, although it is primarily government support for research and capacity expansion rather than immediate revenue. Anderon finalizes $1 billion CHIPS award
• Positive Sentiment: Analysts’ reported price targets remain above the current trading level, and coverage highlighted potential growth from IBM’s quantum infrastructure strategy and AI deployments. A Turkish credit-bureau AI deal also reportedly involves production-scale processing of 23 million transactions daily, though IBM did not disclose its contract value.
• Neutral Sentiment: The quantum award is strategically important but may require substantial execution, investment and time before materially affecting IBM’s earnings. The opportunity is viewed more as a long-term infrastructure platform than an immediate financial catalyst.
• Negative Sentiment: Despite the government announcement, investors appear to be taking profits after IBM’s recent advance. Technical commentary pointed to resistance near the $239–$241 area, while the retreat below that zone weakened the short-term breakout thesis. Why IBM stock is falling
• Negative Sentiment: IBM’s latest reported quarter showed earnings in line with estimates but revenue below expectations, reinforcing concerns that the company’s near-term growth remains modest. The stock’s decline while the broader technology market rallied suggests valuation and profit-taking pressures outweighed the quantum news.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on IBM shares. KeyCorp downgraded International Business Machines to a "sector weight" rating in a report on Tuesday, June 23rd. Wolfe Research lowered International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd. Weiss Ratings raised International Business Machines from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, September 11th. Barclays dropped their price target on shares of International Business Machines from $288.00 to $262.00 and set an "overweight" rating on the stock in a research note on Thursday, July 23rd. Finally, Robert W. Baird initiated coverage on shares of International Business Machines in a research report on Tuesday, July 21st. They set a "neutral" rating and a $230.00 price objective on the stock. Seventeen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, International Business Machines has an average rating of "Moderate Buy" and an average price target of $265.16.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares of the company's stock, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.27% of the stock is currently owned by company insiders.

International Business Machines Stock Performance

Shares of IBM stock opened at $237.65 on Thursday. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company has a 50 day moving average price of $233.43 and a 200-day moving average price of $246.71. International Business Machines Corporation has a 52 week low of $199.19 and a 52 week high of $332.46. The firm has a market capitalization of $223.90 billion, a PE ratio of 21.09, a P/E/G ratio of 2.37 and a beta of 0.71.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts' consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the prior year, the firm earned $2.80 earnings per share. The firm's revenue for the quarter was up 1.1% compared to the same quarter last year. As a group, equities research analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is 59.98%.

About International Business Machines

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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