Tectonic Advisors LLC increased its position in International Business Machines Corporation (NYSE:IBM – Free Report) by 12.0% in the third quarter, HoldingsChannel.com reports. The fund owned 69,853 shares of the technology company’s stock after buying an additional 7,508 shares during the period. Tectonic Advisors LLC’s holdings in International Business Machines were worth $15,363,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds have also modified their holdings of the company. Barrett & Company Inc. raised its stake in shares of International Business Machines by 1.5% in the third quarter. Barrett & Company Inc. now owns 3,667 shares of the technology company’s stock worth $807,000 after purchasing an additional 54 shares during the last quarter. Farmers & Merchants Investments Inc. lifted its holdings in shares of International Business Machines by 0.4% during the third quarter. Farmers & Merchants Investments Inc. now owns 25,926 shares of the technology company’s stock worth $5,702,000 after purchasing an additional 96 shares during the period. Lighthouse Financial LLC boosted its position in International Business Machines by 11.4% in the third quarter. Lighthouse Financial LLC now owns 1,961 shares of the technology company’s stock valued at $431,000 after buying an additional 200 shares during the last quarter. Wedbush Securities Inc. boosted its position in International Business Machines by 0.3% in the third quarter. Wedbush Securities Inc. now owns 68,467 shares of the technology company’s stock valued at $15,058,000 after buying an additional 222 shares during the last quarter. Finally, Fifth Third Wealth Advisors LLC boosted its position in International Business Machines by 10.9% in the third quarter. Fifth Third Wealth Advisors LLC now owns 33,726 shares of the technology company’s stock valued at $7,417,000 after buying an additional 3,319 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.
Insider Activity
In other news, SVP Robert 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 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is currently owned by insiders.
Key International Business Machines News
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.
International Business Machines Stock Performance
Shares of IBM traded up $1.58 during trading hours on Friday, hitting $253.69. The stock had a trading volume of 5,887,409 shares, compared to its average volume of 5,882,694. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.74 and a current ratio of 0.85. The firm has a 50-day moving average price of $233.06 and a 200 day moving average price of $243.70. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The firm has a market capitalization of $239.01 billion, a price-to-earnings ratio of 21.63, a PEG ratio of 2.42 and a beta of 0.73.
International Business Machines (NYSE:IBM – Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.85 by $0.10. The firm had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The firm’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.65 earnings per share. As a group, research analysts anticipate that International Business Machines Corporation will post 12.34 EPS for the current year.
International Business Machines Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be paid a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines’s dividend payout ratio is presently 57.63%.
Wall Street Analyst Weigh In
A number of equities analysts have issued reports on IBM shares. JPMorgan Chase & Co. raised their price target on shares of International Business Machines from $250.00 to $269.00 and gave the stock an “overweight” rating in a research report on Thursday. Craig Hallum started coverage on shares of International Business Machines in a report on Wednesday, August 19th. They issued a “buy” rating on the stock. HSBC cut their price objective on shares of International Business Machines from $175.00 to $174.00 in a research note on Friday, July 24th. Robert W. Baird raised their target price on shares of International Business Machines from $230.00 to $260.00 and gave the stock a “neutral” rating in a report on Thursday. Finally, Citigroup boosted their target price on shares of International Business Machines from $245.00 to $280.00 and gave the company a “buy” rating in a research report on Thursday. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $266.12.
Check Out Our Latest Analysis on IBM
International Business Machines 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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