Yousif Capital Management LLC Acquires 2,088 Shares of International Business Machines Corporation $IBM

Key Points

• Yousif Capital Management increased its IBM stake by 1.7%, acquiring 2,088 shares and bringing its holdings to 126,260 shares valued at approximately $27.8 million. Institutional investors and hedge funds own 58.96% of IBM.
• IBM reported strong third-quarter results, with revenue up 4.7% year over year to $17.1 billion and adjusted EPS of $2.95 exceeding expectations. Analysts maintain a “Moderate Buy” consensus, with an average price target of $266.12.
• Despite the positive results and a quarterly dividend of $1.69 per share, investors remain concerned about IBM’s valuation, slower Consulting growth, acquisition-driven software gains and uncertainty surrounding AI monetization.

Yousif Capital Management LLC increased its stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 1.7% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 126,260 shares of the technology company's stock after acquiring an additional 2,088 shares during the quarter. Yousif Capital Management LLC's holdings in International Business Machines were worth $27,768,000 at the end of the most recent reporting period.

Several other large investors have also recently bought and sold shares of the stock. Portus Wealth Advisors LLC bought a new stake in shares of International Business Machines in the first quarter valued at about $26,000. Harborfront Financial Group LLC bought a new position in International Business Machines during the second quarter valued at about $27,000. Hara Capital LLC acquired a new position in International Business Machines in the 2nd quarter valued at approximately $28,000. Bare Financial Services Inc raised its holdings in International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock valued at $29,000 after acquiring an additional 55 shares in the last quarter. Finally, Caitlin John LLC acquired a new position in International Business Machines in the 2nd quarter valued at approximately $35,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

IBM has been the topic of a number of recent research reports. HSBC decreased their price target on shares of International Business Machines from $175.00 to $174.00 in a research note on Friday, July 24th. Oppenheimer downgraded shares of International Business Machines from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 15th. Argus decreased their target price on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating on the stock in a research report on Thursday, July 16th. Bank of America lowered their target price on shares of International Business Machines from $330.00 to $280.00 and set a "buy" rating on the stock in a research note on Wednesday, July 15th. Finally, Stifel Nicolaus lifted their price objective on International Business Machines from $235.00 to $260.00 and gave the company a "buy" rating in a report on Thursday. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $266.12.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded analyst expectations. Software growth accelerated to 9% at constant currency, infrastructure demand improved, and operating pretax margins expanded by 70 basis points. IBM Beats Q3 Earnings Estimates on Software, Infrastructure Growth
• Positive Sentiment: Management raised its full-year free-cash-flow outlook, supported by stronger software performance, Red Hat demand and enterprise AI activity. Transaction-processing revenue also rose 10%, suggesting improving demand in key recurring-revenue businesses. IBM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts raised their earnings estimates or price targets following the results. Erste Group increased its FY2027 EPS forecast to $13.40 from $13.13, while JPMorgan, RBC and Stifel reiterated positive ratings and lifted targets. IBM Analyst Estimates and Ratings
• Neutral Sentiment: IBM’s updated FY2026 revenue guidance of $70.2 billion to $70.9 billion broadly brackets the $70.4 billion consensus estimate. The outlook was not meaningfully raised, leaving investors focused on whether the software rebound can continue.
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, or $6.76 annualized, reinforcing its appeal to income-oriented investors. A separate dividend-stock article highlighted IBM’s decades-long record of payout increases. IBM Declares $1.69 Dividend
• Negative Sentiment: Investors remain concerned that roughly half of the software growth benefited from the Confluent acquisition and that management’s unchanged revenue outlook implies slower growth later in the year. IBM’s comments that lower-cost, open-weight AI models can deliver comparable performance also raised questions about pricing power and AI monetization. Why Isn’t IBM’s Stock Bouncing Back After Strong Earnings Results?
• Negative Sentiment: Some analysts view IBM’s valuation as demanding relative to its modest underlying growth, while slower Consulting performance, debt and uncertainty over the durability of the software rebound could limit further upside.

Insider Transactions at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares of the company's stock, valued at $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 0.27% of the company's stock.

International Business Machines Price Performance

Shares of NYSE IBM traded up $1.58 during trading on Friday, reaching $253.69. The company had a trading volume of 5,887,409 shares, compared to its average volume of 5,882,694. International Business Machines Corporation has a 52 week low of $199.19 and a 52 week high of $332.46. The business's 50 day moving average price is $233.06 and its 200-day moving average price is $243.70. The stock has a market cap of $239.01 billion, a PE ratio of 21.63, a PEG ratio of 2.42 and a beta of 0.73. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.74 and a current ratio of 0.85.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping analysts' consensus estimates of $2.85 by $0.10. The company had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The firm's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.65 earnings per share. Analysts expect that International Business Machines Corporation will post 12.34 earnings per share for the current year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be paid a dividend of $1.69 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 annualized dividend and a yield of 2.7%. International Business Machines's dividend payout ratio (DPR) is presently 57.63%.

International Business Machines Company Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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