The Manufacturers Life Insurance Company Lowers Position in International Business Machines Corporation $IBM

Key Points

• The Manufacturers Life Insurance Company reduced its IBM stake by 5.5% in the second quarter, selling 36,565 shares and retaining 627,060 shares valued at approximately $176.3 million. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly earnings of $2.93 per share, in line with estimates, while revenue rose 1.1% year over year to $17.16 billion but fell short of expectations. The company also maintains a quarterly dividend of $1.69, yielding approximately 2.8% annually.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target near $265, though several firms recently lowered their targets. IBM’s quantum-computing investments and enterprise AI collaborations offer growth potential, while market weakness and significant required capital spending pose near-term risks.

The Manufacturers Life Insurance Company lessened its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 5.5% in the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 627,060 shares of the technology company's stock after selling 36,565 shares during the period. The Manufacturers Life Insurance Company owned 0.07% of International Business Machines worth $176,336,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in IBM. Assetmark Inc. increased its stake in shares of International Business Machines by 24.8% in the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company's stock worth $15,624,000 after purchasing an additional 12,791 shares in the last quarter. Rice Partnership LLC bought a new position in International Business Machines in the 4th quarter worth $3,317,000. Sage Investment Advisers LLC purchased a new stake in International Business Machines in the 4th quarter worth $4,101,000. Flputnam Investment Management Co. bought a new stake in International Business Machines during the second quarter valued at about $15,237,000. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund bought a new stake in International Business Machines during the fourth quarter valued at about $10,039,000. Institutional investors own 58.96% of the company's stock.

International Business Machines Stock Up 0.3%

Shares of NYSE:IBM opened at $238.27 on Friday. The company has a market cap of $224.48 billion, a price-to-earnings ratio of 21.14, a PEG ratio of 2.26 and a beta of 0.71. International Business Machines Corporation has a 12 month low of $199.19 and a 12 month high of $332.46. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The company has a 50-day moving average price of $232.30 and a 200 day moving average price of $246.70.

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, 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 company had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. During the same period in the previous year, the firm posted $2.80 earnings per share. The firm's revenue for the quarter was up 1.1% on a year-over-year basis. As a group, equities research analysts predict that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend

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

International Business Machines News Roundup

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 support research, development and early production at a 300-millimeter quantum wafer foundry in Albany, New York. IBM is expected to match the award with its own investment. The deal strengthens IBM’s position in quantum-computing infrastructure, although the funding is intended largely for development rather than an immediate revenue increase. Anderon CHIPS award announcement
• Positive Sentiment: Investors view the Anderon facility as a potential long-term growth opportunity because IBM could build quantum manufacturing capacity and provide infrastructure to outside customers. Reports of initial quantum-wafer production and fresh industry breakthroughs have also lifted sentiment toward IBM and quantum peers. IBM quantum infrastructure report
• Positive Sentiment: IBM announced collaborations with CUBE and Dun & Bradstreet that add regulatory intelligence and verified business data to watsonx.governance and watsonx Orchestrate. The agreements support IBM’s effort to turn AI pilots into production-grade, compliant enterprise workflows, though financial terms were not disclosed. CUBE and IBM collaboration
• Neutral Sentiment: Analysts cited in recent coverage set an average price target of approximately $265.90, implying potential upside from recent trading levels, but the target is not a guarantee and IBM remains below its 200-day moving average.
• Negative Sentiment: IBM recently experienced a sharper decline than the broader market, with coverage pointing to profit-taking, technical weakness and general market pressure despite the quantum award. The company must also commit substantial capital alongside federal funding, which could limit the near-term earnings benefit. IBM recent market decline

Wall Street Analysts Forecast Growth

IBM has been the topic of a number of research analyst reports. JPMorgan Chase & Co. lowered their price target on International Business Machines from $291.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday, July 17th. KeyCorp downgraded International Business Machines to a "sector weight" rating in a research note on Tuesday, June 23rd. Piper Sandler upgraded International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. BMO Capital Markets cut their target price on shares of International Business Machines from $270.00 to $230.00 and set a "market perform" rating for the company in a report on Thursday, July 23rd. Finally, Argus cut their target price on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a report on Thursday, July 16th. Seventeen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $265.16.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business'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 of the company's stock, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate 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 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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