Welch & Forbes LLC Raises Holdings in International Business Machines Corporation $IBM

Key Points

• Welch & Forbes increased its IBM position by 30.4% in the second quarter, bringing its holdings to 69,666 shares valued at approximately $19.6 million. Institutional investors collectively own 58.96% of IBM’s stock.
• IBM’s latest quarter showed mixed results: earnings per share met estimates at $2.93, but revenue of $17.16 billion fell short of the $17.46 billion consensus forecast. The company declared a quarterly dividend of $1.69 per share, representing a 2.9% annualized yield.
• Analyst sentiment remains a Moderate Buy, with a consensus price target of $265.40, although several firms recently cut their targets. IBM also faces concerns over weaker-than-expected revenue, an announced securities investigation, and an insider sale of 25,000 shares.

Welch & Forbes LLC boosted its position in International Business Machines Corporation (NYSE:IBM - Free Report) by 30.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 69,666 shares of the technology company's stock after acquiring an additional 16,221 shares during the quarter. Welch & Forbes LLC's holdings in International Business Machines were worth $19,591,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of International Business Machines during the 4th quarter worth about $2,446,429,000. Capital World Investors raised its holdings in International Business Machines by 29.2% in the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock valued at $6,523,720,000 after buying an additional 4,976,756 shares during the period. Ascentis Wealth Management LLC raised its holdings in International Business Machines by 27,169.6% in the second quarter. Ascentis Wealth Management LLC now owns 3,224,635 shares of the technology company's stock valued at $906,800,000 after buying an additional 3,212,810 shares during the period. Price T Rowe Associates Inc. MD lifted its position in International Business Machines by 83.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company's stock valued at $1,663,847,000 after buying an additional 2,553,552 shares in the last quarter. Finally, Corient Private Wealth LLC grew its stake in International Business Machines by 359.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company's stock worth $561,814,000 after buying an additional 1,484,026 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

Insiders Place Their Bets

In other news, SVP Robert David Thomas sold 25,000 shares of the firm's stock in a transaction dated 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 completion of the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.27% of the stock is currently owned by insiders.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

International Business Machines Trading Down 1.3%

IBM opened at $235.78 on Friday. The firm's 50 day moving average is $244.57 and its 200-day moving average is $248.65. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week high of $332.46. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The firm has a market capitalization of $222.14 billion, a P/E ratio of 20.92, a P/E/G ratio of 2.31 and a beta of 0.70.

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 for the quarter, meeting the consensus estimate of $2.93. The business had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business's quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.80 earnings per share. Analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's dividend payout ratio is presently 59.98%.

Analyst Ratings Changes

Several research firms have recently issued reports on IBM. Morgan Stanley dropped their price objective on shares of 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. Roth Capital reaffirmed a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Argus lowered their price target on International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a report on Thursday, July 16th. BMO Capital Markets cut 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 report on Thursday, July 23rd. Finally, Needham & Company LLC assumed coverage on International Business Machines in a research note on Wednesday, June 3rd. They set a "buy" rating on the stock. Sixteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, International Business Machines has a consensus rating of "Moderate Buy" and an average price target of $265.40.

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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