SCS Capital Management LLC Invests $9.25 Million in International Business Machines Corporation $IBM

Key Points

• SCS Capital Management acquired 32,909 IBM shares worth approximately $9.25 million in the second quarter, while institutional investors collectively own 58.96% of the company.
• IBM’s latest quarterly revenue of $17.16 billion fell short of the $17.46 billion consensus estimate, although earnings per share matched expectations at $2.93 and revenue increased 1.1% year over year.
• The stock was trading near $231, down 1.2%, amid concerns over AI disruption, pricing pressure, a revenue miss and legal overhangs. IBM maintains a $1.69 quarterly dividend, equivalent to a 2.9% yield, while analysts hold a “Moderate Buy” consensus rating with a $265.90 average price target.

SCS Capital Management LLC acquired a new stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 32,909 shares of the technology company's stock, valued at approximately $9,254,000.

A number of other hedge funds also recently bought and sold shares of IBM. Brighton Jones LLC grew its position in International Business Machines by 12.4% during the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after acquiring an additional 2,323 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of International Business Machines by 10.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after acquiring an additional 186 shares during the last quarter. Jump Financial LLC purchased a new stake in shares of International Business Machines in the 2nd quarter valued at $211,000. Ieq Capital LLC boosted its stake in shares of International Business Machines by 2.2% in the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after purchasing an additional 843 shares in the last quarter. Finally, Vivaldi Capital Management LP grew its holdings in shares of International Business Machines by 11.6% during the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after purchasing an additional 106 shares during the last quarter. Institutional investors own 58.96% of the company's stock.

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

International Business Machines Stock 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 stock has a market capitalization of $217.75 billion, a PE ratio of 20.51, a PEG ratio of 2.30 and a beta of 0.70. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The business's 50-day moving average is $243.51 and its 200 day moving average is $247.61.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting 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 during the quarter, compared to analysts' expectations of $17.46 billion. During the same quarter last year, the business posted $2.80 EPS. The business's revenue was up 1.1% on a year-over-year basis. Sell-side analysts forecast that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's payout ratio is presently 59.98%.

Analyst Upgrades and Downgrades

IBM has been the subject of several recent research reports. Wolfe Research downgraded shares of International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. Argus decreased their price objective on International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a report on Thursday, July 16th. Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a research note on Saturday. HSBC set a $175.00 target price on International Business Machines and gave the company a "reduce" rating in a report on Thursday, July 16th. Finally, Roth Capital reiterated a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Sixteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $265.90.

Insider Buying and Selling

In other news, SVP Robert David Thomas sold 25,000 shares of the firm's 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 of the company's stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.27% of the company's stock.

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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