Rakuten Investment Management Inc. Takes Position in International Business Machines Corporation $IBM

Rakuten Investment Management Inc. purchased a new stake in International Business Machines Corporation (NYSE:IBM) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 153,622 shares of the technology company’s stock, valued at approximately $42,707,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Basepoint Wealth LLC acquired a new stake in International Business Machines during the 4th quarter valued at $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines in the first quarter worth $26,000. Harborfront Financial Group LLC purchased a new position in shares of International Business Machines during the second quarter valued at $27,000. Cornerstone Financial Management LLC acquired a new position in International Business Machines during the fourth quarter valued at $28,000. Finally, Hara Capital LLC purchased a new stake in International Business Machines in the 2nd quarter worth about $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on IBM. Piper Sandler upgraded International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Barclays reduced their price target on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating for the company in a research report on Thursday, July 23rd. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Needham & Company LLC assumed coverage on shares of International Business Machines in a research note on Wednesday, June 3rd. They issued a “buy” rating on the stock. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $270.00 price objective on shares of International Business Machines in a research note on Tuesday, July 21st. Sixteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $265.90.

International Business Machines News Summary

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

• Positive Sentiment: IBM and Lockheed Martin announced a quantum innovation hub at ETH Zurich, supported by Switzerland’s defense-procurement offset program. The initiative will deploy Switzerland’s first IBM Quantum System Two at the Swiss National Supercomputing Centre, giving IBM a multi-year platform for quantum-computing research in areas such as sensing and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Positive Sentiment: IBM and NASA released an open-source Lunar Foundation Model trained on extensive lunar-observation data. The model reportedly improves identification of lunar features, including potential ice deposits and craters, highlighting IBM’s AI capabilities and government-research relationships, although the near-term revenue impact is likely limited. IBM and NASA Release Open-Source AI Model
• Positive Sentiment: Market commentary continues to identify IBM as an established-company route to AI and quantum exposure, supported by its hybrid-cloud, enterprise-software and consulting businesses. A Cleveland Clinic, RIKEN and IBM team was also named a finalist for the ACM Gordon Bell Prize for quantum-centric supercomputing research. IBM Team Advances to Gordon Bell Prize Finals
• Neutral Sentiment: A shareholder-rights law firm announced an investigation into IBM related to its previously previewed second-quarter results. Such notices are often solicitation-driven and do not establish wrongdoing, but they can add headline and legal-risk pressure. Law Firm Investigation Report
• Negative Sentiment: IBM’s latest quarterly results showed earnings in line with estimates but revenue below expectations, reinforcing concerns that growth is modest. Analysts also continue to view competing AI-cloud names as having stronger near-term growth and momentum.
• Negative Sentiment: Investors remain focused on IBM’s earlier AI-security investment and whether related partnerships will translate into durable software revenue. Those questions, combined with a premium valuation and broader-market weakness, appear to have outweighed the longer-term quantum and AI announcements. IBM AI Security Investment

Insider Transactions at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the company’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 sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 0.27% of the company’s stock.

International Business Machines Price Performance

Shares of IBM opened at $234.06 on Friday. The firm has a market cap of $220.51 billion, a PE ratio of 20.77, a PEG ratio of 2.29 and a beta of 0.71. The firm’s 50 day moving average price is $237.79 and its 200 day moving average price is $246.38. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.93. The firm had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company’s revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the company earned $2.80 earnings per share. As a group, research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid 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 was Monday, August 10th. International Business Machines’s payout ratio is presently 59.98%.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.