Occidental Asset Management LLC Takes $4.22 Million Position in International Business Machines Corporation $IBM

Key Points

• Occidental Asset Management bought 15,017 IBM shares worth approximately $4.22 million in the second quarter, while institutional investors collectively own 58.96% of the company.
• IBM reported quarterly EPS of $2.93, in line with analyst expectations, but revenue of $17.16 billion fell short of the $17.46 billion consensus estimate; revenue nevertheless increased 1.1% year over year.
• IBM will pay a quarterly dividend of $1.69 per share, representing an annualized yield of about 2.9%. Analysts maintain a “Moderate Buy” consensus with an average price target of $265.90, though concerns include growth pressure, valuation, insider selling and a reported securities-fraud investigation.

Occidental Asset Management LLC purchased a new position in International Business Machines Corporation (NYSE:IBM - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 15,017 shares of the technology company's stock, valued at approximately $4,223,000.

A number of other institutional investors have also recently made changes to their positions in the business. State Street Corp raised its stake in International Business Machines by 1.0% in the fourth quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock valued at $16,290,452,000 after buying an additional 518,321 shares during the last quarter. Geode Capital Management LLC boosted its stake in 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 purchasing an additional 336,069 shares in the last quarter. Capital World Investors grew 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 worth $6,523,720,000 after purchasing an additional 4,976,756 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock worth $3,893,669,000 after buying an additional 1,049,602 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of International Business Machines during the second quarter worth $2,606,782,000. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Price Performance

Shares of NYSE IBM opened at $231.43 on Thursday. 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 firm has a market cap of $218.04 billion, a PE ratio of 20.54, a PEG ratio of 2.21 and a beta of 0.71. International Business Machines Corporation has a one year low of $199.19 and a one year high of $332.46. The firm has a fifty day moving average of $242.89 and a 200 day moving average of $247.41.

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

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. 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 2.9%. International Business Machines's dividend payout ratio is presently 59.98%.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM Ventures expands quantum-computing exposure: IBM Ventures invested in BQP, a physics-acceleration company whose bookings have reportedly increased eightfold. The investment supports IBM’s positioning in quantum and advanced-computing infrastructure, although the deal is unlikely to materially affect near-term earnings. IBM Ventures backs BQP
• Positive Sentiment: AI and quantum themes continue to support the investment case: Analysts highlighted IBM among large technology companies that could benefit from quantum-computing adoption through cloud, software and infrastructure offerings. Retail-investor coverage also identified IBM as a favored long-term AI stock, particularly because of its enterprise focus and hybrid-cloud capabilities. Quantum boom investment ideas
• Neutral Sentiment: Dividend remains a key attraction: IBM is highlighted as a major technology dividend payer, with a quarterly distribution of $1.69 per share. The income profile may appeal to defensive investors, though dividend comparisons alone do not resolve concerns about valuation or growth. Cisco versus IBM dividend comparison
• Neutral Sentiment: IBM is promoting responsible AI adoption: A new study found that AI adoption in U.S. K-12 schools is outpacing institutional readiness, prompting IBM to launch a fellowship for education leaders. The initiative may strengthen IBM’s brand and future relationships but has limited immediate financial impact. IBM K-12 AI study
• Negative Sentiment: Securities-fraud investigation adds headline risk: Bleichmar Fonti & Auld said it is investigating whether IBM made potentially misleading statements about the pace of business deals. The announcement is an allegation, not a finding of wrongdoing, but it could increase legal uncertainty and investor caution. IBM securities investigation
• Negative Sentiment: Broader concerns remain over IBM’s growth outlook: Recent analysis cited AI-driven disruption to legacy services, pricing pressure and reduced estimates as reasons for IBM’s year-to-date weakness, despite support from hybrid cloud and watsonx. Technical coverage also identified resistance near $239, suggesting limited upside until momentum improves. IBM stock outlook

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Weiss Ratings cut International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 24th. The Goldman Sachs Group set a $270.00 target price on International Business Machines in a research report on Thursday, July 23rd. Piper Sandler upgraded shares of International Business Machines to an "overweight" rating in a research note on Tuesday, June 23rd. Craig Hallum began coverage on shares of International Business Machines in a research note on Wednesday, August 19th. They issued a "buy" rating on the stock. Finally, Citigroup lowered their price target on shares of International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Sixteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, International Business Machines presently has an average rating of "Moderate Buy" and an average target price of $265.90.

Insider Activity at International Business Machines

In other 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 value 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 $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.27% of the stock is owned by company 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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