Vanguard Group Inc. Grows Position in International Business Machines Corporation $IBM

Key Points

• Vanguard Group raised its stake in IBM by 1.5% in Q4 to 97,216,131 shares — roughly 10.40% of the company, valued at about $28.8 billion.
• IBM beat Q1 estimates (EPS $1.91 vs. $1.81; revenue $15.92B) and raised its quarterly dividend to $1.69 (31st consecutive annual raise), but a steady full‑year outlook sparked a post‑earnings selloff amid worries about near‑term AI monetization.
• Analyst views are mixed but skew positive with a MarketBeat consensus of “Moderate Buy” and a $300.25 average price target, even as some firms trimmed targets or changed ratings.

Vanguard Group Inc. lifted its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 1.5% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 97,216,131 shares of the technology company's stock after purchasing an additional 1,439,824 shares during the quarter. Vanguard Group Inc. owned about 10.40% of International Business Machines worth $28,796,390,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also modified their holdings of the company. Family CFO Inc purchased a new position in shares of International Business Machines during the fourth quarter worth $25,000. Mountain Hill Investment Partners Corp. purchased a new position in shares of International Business Machines during the third quarter worth $28,000. SWAN Capital LLC purchased a new position in shares of International Business Machines during the third quarter worth $28,000. DecisionPoint Financial LLC boosted its position in International Business Machines by 1,666.7% in the 4th quarter. DecisionPoint Financial LLC now owns 106 shares of the technology company's stock valued at $31,000 after buying an additional 100 shares during the period. Finally, Trifecta Capital Advisors LLC boosted its position in International Business Machines by 129.1% in the 3rd quarter. Trifecta Capital Advisors LLC now owns 126 shares of the technology company's stock valued at $36,000 after buying an additional 71 shares during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have commented on IBM shares. UBS Group raised shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target for the company in a research report on Wednesday, February 25th. Evercore raised their price target on shares of International Business Machines from $330.00 to $345.00 and gave the company an "outperform" rating in a research report on Thursday, January 29th. Weiss Ratings reissued a "buy (b)" rating on shares of International Business Machines in a research report on Tuesday. Dbs Bank raised shares of International Business Machines from a "hold" rating to a "moderate buy" rating in a research report on Monday, January 19th. Finally, BMO Capital Markets decreased their price target on shares of International Business Machines from $290.00 to $270.00 and set a "market perform" rating for the company in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $300.25.

International Business Machines Price Performance

IBM stock opened at $231.88 on Friday. The business has a 50 day moving average price of $245.87 and a 200 day moving average price of $280.37. The stock has a market cap of $217.51 billion, a price-to-earnings ratio of 20.50, a PEG ratio of 2.42 and a beta of 0.69. International Business Machines Corporation has a fifty-two week low of $220.72 and a fifty-two week high of $324.90. The company has a quick ratio of 0.92, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same quarter last year, the company posted $1.60 earnings per share. The business's quarterly revenue was up 9.5% compared to the same quarter last year. Equities research analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Friday, May 8th. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

Insider Activity

In other news, Director Michael Miebach bought 434 shares of International Business Machines stock in a transaction dated Wednesday, February 25th. The stock was acquired at an average cost of $233.33 per share, with a total value of $101,265.22. Following the acquisition, the director owned 434 shares of the company's stock, valued at approximately $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director David N. Farr bought 1,000 shares of International Business Machines stock in a transaction dated Friday, January 30th. The stock was purchased at an average cost of $304.00 per share, with a total value of $304,000.00. Following the completion of the acquisition, the director directly owned 9,258 shares in the company, valued at approximately $2,814,432. The trade was a 12.11% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 1,484 shares of company stock valued at $417,157 over the last three months. Company insiders own 0.27% of the company's stock.

More International Business Machines News

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

• Positive Sentiment: DZ Bank upgraded IBM to Buy with a $295 price target, giving bullish analyst support and a clear catalyst for buyers. DZ Bank Upgrades IBM to Buy With a $295 Price Target
• Positive Sentiment: IBM unveiled a new AI model aimed at better understanding fusion plasma — a positive long-term innovation narrative that supports IBM’s AI/technology credentials beyond near-term software metrics. IBM’s New AI Model Could Help Unlock Fusion Power
• Positive Sentiment: IBM raised its quarterly dividend to $1.69 (31st consecutive annual raise), which supports income-focused investor demand. What IBM's Q1 Beat and 31st Dividend Hike Mean
• Neutral Sentiment: IBM beat Q1 revenue and EPS estimates (revenue ~$15.9B, EPS $1.91) but management largely reiterated full‑year guidance — the beat removes one concern but the unchanged outlook limits upside momentum. IBM Q1 Deep Dive
• Neutral Sentiment: Broader market and sector context (software volatility, geopolitical oil/Strait of Hormuz risks) are contributing background noise that can amplify short-term swings but aren’t IBM‑specific fundamentals. US software stocks slide as IBM, ServiceNow results reignite AI disruption fears
• Negative Sentiment: Investors punished the stock after earnings because software growth was viewed as underwhelming versus AI hype; this sparked a sharp post‑earnings selloff (double‑digit moves intraday in recent sessions). IBM slides 8% as investors digest Q1 beat
• Negative Sentiment: Some analysts trimmed targets or expressed concern about near‑term AI monetization, including a recent target cut that helped fuel selling pressure. Stock Down After Analyst Target Cut

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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