SFE Investment Counsel Buys Shares of 38,650 International Business Machines Corporation $IBM

Key Points

• SFE Investment Counsel acquired 38,650 IBM shares worth approximately $10.9 million, making IBM about 1.5% of its portfolio. Institutional investors and hedge funds collectively own 58.96% of the company.
• Analyst sentiment remains broadly positive, with 16 Buy, 11 Hold and one Sell rating and a consensus price target of $265.90. However, IBM’s latest revenue of $17.16 billion missed estimates despite earnings per share meeting expectations.
• IBM’s senior vice president Robert David Thomas sold 25,000 shares for about $5.8 million, reducing his direct holdings by 34.34%. The company also declared a quarterly dividend of $1.69 per share, equivalent to a 2.9% annualized yield.

SFE Investment Counsel bought a new position in International Business Machines Corporation (NYSE:IBM - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 38,650 shares of the technology company's stock, valued at approximately $10,869,000. International Business Machines accounts for about 1.5% of SFE Investment Counsel's holdings, making the stock its 24th largest holding.

Several other large investors have also recently bought and sold shares of the business. Basepoint Wealth LLC acquired a new stake in International Business Machines during the 4th quarter worth about $25,000. Portus Wealth Advisors LLC acquired a new position in shares of International Business Machines in the 1st quarter valued at about $26,000. Cornerstone Financial Management LLC acquired a new position in shares of International Business Machines in the 4th quarter valued at about $28,000. SWAN Capital LLC purchased a new stake in shares of International Business Machines in the third quarter worth approximately $28,000. Finally, Bare Financial Services Inc boosted its holdings in shares of International Business Machines by 114.6% during the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after purchasing an additional 55 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

IBM has been the topic of a number of research analyst reports. HSBC set a $175.00 price objective on shares of International Business Machines and gave the company a "reduce" rating in a research report on Thursday, July 16th. Craig Hallum started coverage on shares of International Business Machines in a research note on Wednesday, August 19th. They set a "buy" rating for the company. JPMorgan Chase & Co. lowered their price target on shares of International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday, July 17th. Piper Sandler raised shares of International Business Machines to an "overweight" rating in a research note on Tuesday, June 23rd. Finally, Morgan Stanley reduced their price objective on International Business Machines from $293.00 to $190.00 and set an "equal weight" rating for the company in a research report on Thursday, July 23rd. Sixteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $265.90.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s acquisition of HRL Laboratories adds silicon-spin qubit, advanced materials and manufacturing expertise that could improve the company’s ability to develop scalable quantum-computing systems. The deal strengthens IBM’s technology pipeline, although commercial benefits may take years to materialize. Can IBM’s HRL Acquisition Boost Its Quantum Computing Capabilities?
• Positive Sentiment: Susquehanna analyst James Friedman raised his IBM price target to $235, citing several upcoming quantum-computing catalysts. However, his caution indicates that quantum remains an emerging opportunity rather than an immediate earnings driver. Can Quantum Computing Save IBM Stock?
• Positive Sentiment: A new market report identifies IBM as a leading enterprise blockchain and Blockchain-as-a-Service provider, highlighting its cloud-native offerings and exposure to expected blockchain-market growth. IBM Emerges As a Leading Enterprise Blockchain Provider
• Neutral Sentiment: Research reports forecast growth in biological computing, computer-based sensing, business service management, UNIX and high-throughput computing. IBM is listed among market participants, but the reports do not announce contracts, revenue changes or specific financial benefits for the company.
• Negative Sentiment: Coverage says IBM’s stock has fallen sharply after missing second-quarter revenue expectations, reinforcing investor concerns about product and top-line momentum. Quantum initiatives may not offset near-term execution concerns. IBM Stock Falls 19%: Will Quantum Computing Spark a Recovery?
• Negative Sentiment: A securities law firm announced an investigation into possible securities-law violations following IBM’s significant decline. The announcement is not a finding of wrongdoing, but it adds headline and potential litigation risk. IBM Investment Losses and Pending Securities Fraud Investigation
• Negative Sentiment: Reports of a senior executive selling approximately $5.8 million of IBM stock may weigh modestly on sentiment, though insider sales can reflect personal financial planning and are not necessarily evidence of deteriorating fundamentals. IBM SVP Sells $5.758 Million in Stock

Insider Buying and Selling

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

International Business Machines Price Performance

Shares of IBM opened at $233.73 on Tuesday. 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 $220.20 billion, a PE ratio of 20.74, a PEG ratio of 2.31 and a beta of 0.70. The firm's 50 day moving average price is $244.18 and its 200 day moving average price is $247.91. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month 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, hitting the consensus estimate 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 during the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the previous year, the firm posted $2.80 earnings per share. The company's revenue for the quarter was up 1.1% compared to the same quarter last year. As a group, research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be issued 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 dividend payout ratio is currently 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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