Wealth Effects LLC Invests $4.18 Million in International Business Machines Corporation $IBM

Key Points

• Wealth Effects LLC acquired 14,855 IBM shares worth approximately $4.18 million in the second quarter, making IBM about 1.1% of its portfolio. Institutional investors collectively own 58.96% of IBM.
• IBM’s latest quarter met EPS expectations at $2.93, but revenue of $17.16 billion fell short of the $17.46 billion consensus estimate. Shares were recently near $231, well below their 12-month high of $332.46.
• Analysts have mixed views: the consensus rating remains “Moderate Buy” with a $265.90 price target, while concerns include AI-related disruption, weak legacy-services growth, a revenue miss, pending securities-fraud litigation and insider selling.

Wealth Effects LLC acquired a new position in shares of International Business Machines Corporation (NYSE:IBM - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 14,855 shares of the technology company's stock, valued at approximately $4,177,000. International Business Machines comprises approximately 1.1% of Wealth Effects LLC's holdings, making the stock its 16th biggest position.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its position in International Business Machines by 424.6% in the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company's stock valued at $77,234,000 after buying an additional 211,040 shares in the last quarter. Assetmark Inc. grew its stake in shares of International Business Machines by 24.8% during the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company's stock worth $15,624,000 after buying an additional 12,791 shares during the last quarter. GLOBALT Investments LLC GA increased its holdings in shares of International Business Machines by 19.1% during the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company's stock worth $5,417,000 after buying an additional 2,930 shares in the last quarter. Rice Partnership LLC acquired a new position in shares of International Business Machines during the fourth quarter worth $3,317,000. Finally, Sage Investment Advisers LLC bought a new position in shares of International Business Machines in the 4th quarter valued at $4,101,000. 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 Performance

Shares of International Business Machines stock opened at $231.12 on Wednesday. The company has a quick ratio of 0.74, a current ratio of 0.79 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. The stock has a market cap of $217.75 billion, a price-to-earnings ratio of 20.51, a P/E/G ratio of 2.30 and a beta of 0.70. The company's fifty day moving average is $243.51 and its 200 day moving average is $247.61.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.93. The business had revenue of $17.16 billion during the quarter, compared to analyst estimates 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 revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period last year, the company earned $2.80 EPS. Sell-side analysts forecast that International Business Machines Corporation will post 12.33 EPS 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. Stockholders 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 dividend yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines's dividend payout ratio (DPR) is 59.98%.

Insider Activity at International Business Machines

In related news, SVP Robert David Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value 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. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.27% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Morgan Stanley cut their price objective on International Business Machines from $293.00 to $190.00 and set an "equal weight" rating on the stock in a report on Thursday, July 23rd. Oppenheimer downgraded International Business Machines from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 15th. Jefferies Financial Group cut their price target on International Business Machines from $320.00 to $260.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Royal Bank Of Canada restated an "outperform" rating and set a $270.00 price target on shares of International Business Machines in a report on Tuesday, July 21st. Finally, Wolfe Research downgraded International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $265.90.

International Business Machines 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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