Sound Income Strategies LLC Purchases 4,493 Shares of International Business Machines Corporation $IBM

Key Points

• Sound Income Strategies increased its IBM position by 6.9%, acquiring 4,493 shares to own 69,881 shares valued at approximately $15.8 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported adjusted earnings in line with estimates at $2.93 per share, while revenue rose just 1.1% year over year to $17.16 billion. Mainframe revenue reportedly declined sharply, highlighting pressure on the company’s legacy business despite growth in distributed infrastructure.
• Analyst sentiment remains mixed, with a consensus Hold rating and an average price target of $252.96. IBM also maintains an annualized dividend of $6.76 per share, yielding about 3.0%.

Sound Income Strategies LLC boosted its position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 6.9% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 69,881 shares of the technology company's stock after acquiring an additional 4,493 shares during the quarter. Sound Income Strategies LLC's holdings in International Business Machines were worth $15,836,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Decker Wealth Management LLC increased its stake in International Business Machines by 2.0% during the third quarter. Decker Wealth Management LLC now owns 3,224 shares of the technology company's stock worth $709,000 after purchasing an additional 64 shares during the period. Bill Few Associates Inc. boosted its stake in shares of International Business Machines by 10.1% in the third quarter. Bill Few Associates Inc. now owns 21,821 shares of the technology company's stock valued at $4,799,000 after purchasing an additional 2,006 shares during the period. Avity Investment Management Inc. grew its holdings in shares of International Business Machines by 1.8% in the third quarter. Avity Investment Management Inc. now owns 53,216 shares of the technology company's stock valued at $11,704,000 after purchasing an additional 945 shares in the last quarter. Bullock Wealth Management Group grew its holdings in shares of International Business Machines by 2.9% in the third quarter. Bullock Wealth Management Group now owns 2,949 shares of the technology company's stock valued at $665,000 after purchasing an additional 83 shares in the last quarter. Finally, Riversedge Advisors LLC increased its stake in International Business Machines by 20.7% during the 3rd quarter. Riversedge Advisors LLC now owns 2,172 shares of the technology company's stock worth $478,000 after buying an additional 373 shares during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines News Summary

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

• Positive Sentiment: IBM advanced to Stage C of DARPA’s Quantum Benchmarking Initiative, putting its hardware and architecture through independent verification. The company is targeting a fault-tolerant quantum computer by 2029, giving investors a potential long-term growth catalyst and external validation of its technology roadmap. IBM Wins DARPA’s Quantum Stamp of Approval
• Positive Sentiment: IBM launched Ready for SAP Solutions, a consulting offering designed to help midsize and fast-growing companies modernize SAP cloud ERP systems using AI, integrated data and automation. The initiative could support consulting demand and strengthen IBM’s relationship with SAP customers. IBM and SAP ERP modernization partnership
• Positive Sentiment: IBM Consulting’s second-quarter profit rose 15.1% to $647 million despite nearly flat revenue, indicating improved delivery economics and margin expansion. Separately, an IBM security partnership helped keep the cybersecurity sector in focus, potentially highlighting demand for IBM’s security capabilities. IBM Consulting profit growth
• Neutral Sentiment: Truist Securities initiated coverage with a Hold rating and a $240 price target. The firm sees IBM’s long-term enterprise-computing position positively but said the timing of AI-driven demand and near-term execution remain uncertain. Truist starts IBM at Hold
• Negative Sentiment: IBM’s mainframe revenue reportedly fell 42% in fiscal second quarter, while distributed infrastructure rose 37%; total revenue increased only 1% to approximately $17.2 billion. The contrast underscores pressure on a legacy business and raises questions about the durability of IBM’s growth outlook. IBM mainframe revenue decline
• Negative Sentiment: Analysts continue to cite IBM’s second-quarter execution shortfall, including large deals that closed later than expected. That caution is limiting enthusiasm despite the stock’s lower valuation and the company’s longer-term AI and quantum opportunities. IBM Stock Looks Cheap

Analysts Set New Price Targets

A number of equities research analysts have issued reports on IBM shares. Royal Bank Of Canada reiterated an "outperform" rating and set a $270.00 target price (down from $300.00) on shares of International Business Machines in a report on Tuesday, July 21st. Truist Financial began coverage on shares of International Business Machines in a research note on Friday. They issued a "hold" rating and a $240.00 price target for the company. Citic Securities upped their price objective on International Business Machines from $294.00 to $297.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. BMO Capital Markets reduced their price objective on International Business Machines from $270.00 to $230.00 and set a "market perform" rating on the stock in a research note on Thursday, July 23rd. Finally, Citigroup lowered their target price on International Business Machines from $255.00 to $245.00 and set a "buy" rating for the company in a research note on Friday, July 24th. Eighteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, International Business Machines has a consensus rating of "Hold" and a consensus target price of $252.96.

Insider Activity at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.27% of the company's stock.

International Business Machines Stock Up 0.1%

Shares of IBM stock traded up $0.30 on Friday, reaching $226.91. 3,349,049 shares of the stock were exchanged, compared to its average volume of 7,538,434. The company has a market capitalization of $213.78 billion, a price-to-earnings ratio of 20.13, a PEG ratio of 2.10 and a beta of 0.73. The business's 50 day moving average price is $232.29 and its 200 day moving average price is $243.97. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. 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 quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts' consensus estimates of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.International Business Machines's quarterly revenue was up 1.1% on a year-over-year basis. During the same period last year, the firm earned $2.80 earnings per share. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were given a dividend of $1.69 per share. The ex-dividend date was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.0%. International Business Machines's payout ratio is 59.98%.

International Business Machines Company Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM's portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.

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