October 27, 2025

Texas Teacher Retirement System Adjusts IBM Holdings

News Summary

The Teacher Retirement System of Texas made headlines by reducing its IBM holdings by 15.5%. The fund sold 53,184 shares, bringing its total to 290,427 shares valued at around $85.6 million. While some investors reduced their stakes, others significantly increased their ownership in IBM. Analysts remain optimistic about IBM’s future, with an average rating of ‘Moderate Buy’ and earnings surpassing expectations. As strategies shift, the moves by institutional investors will be crucial to monitor in the tech investment landscape.

AUSTIN, Texas – The Teacher Retirement System of Texas has cut its investment holdings in International Business Machines Corporation (NYSE:IBM) by 15.5% during the second quarter of the year. Following this decision, the fund currently owns 290,427 shares, down from 343,611 shares, after selling 53,184 shares in the recent quarter. The value of these holdings stands at approximately $85.6 million.

In contrast to the Teacher Retirement System, several institutional investors and hedge funds have substantially increased their stakes in IBM. For instance, Brooklyn Investment Group enhanced its position in IBM by 32.7% in the first quarter, now holding 6,622 shares valued at around $1.65 million after purchasing an additional 1,630 shares. Similarly, Edgar Lomax Co. VA boosted its holdings by 5.7%, acquiring an additional 12,690 shares to reach a total of 235,967 shares worth about $58.68 million.

Further indicating investor interest, Left Brain Wealth Management LLC raised its stake by an impressive 1,547.8%, currently owning 17,664 shares valued at $4.39 million following the purchase of 16,592 shares. Additionally, Alpha Cubed Investments LLC increased its stake in IBM by 47.0%, obtaining 7,507 shares valued at around $1.87 million. Wedbush Securities Inc. also raised its stake in IBM by 5.6%, now holding 62,067 shares worth approximately $15.43 million.

With these shifts in ownership, institutional investors and hedge funds collectively own about 58.96% of IBM’s stock. Analysts have provided varied ratings for IBM’s stock, with one Strong Buy, eight Buy, seven Hold, and one Sell. The average rating is classified as a Moderate Buy, with an average target price of $288.00. Recent adjustments to price targets include BMO Capital Markets lifting its price target from $300.00 to $305.00, while Bank of America increased its objective from $310.00 to $315.00.

Wall Street’s sentiment has seen changes as well, with UBS Group raising its target price from $200.00 to $210.00 and issuing a Sell rating. Sanford C. Bernstein initiated coverage on IBM with a market perform rating and a price target of $280.00. As of the latest trading session, IBM shares opened at $307.78.

Financially, IBM has demonstrated solid performance, reporting earnings per share of $2.65 for the last quarter, surpassing analyst expectations of $2.45 per share. The company’s revenue for the quarter was $16.33 billion, exceeding estimates of $16.1 billion and marking a 9.1% increase year-over-year. With a market cap of $287.69 billion, IBM possesses a current ratio of 0.93 and a debt-to-equity ratio of 1.97.

IBM’s stock is experiencing fluctuations, with a 52-week low of $203.51 and a high of $310.75. As for dividends, IBM has declared a quarterly dividend of $1.68 per share, which will be paid on December 10. The annualized dividend stands at $6.72, translating to a yield of 2.2%. The company’s dividend payout ratio is currently at 80.38%.

Looking ahead, IBM has laid out its fiscal year 2025 guidance, with analysts projecting earnings per share of 10.78 for the current fiscal year, reflecting continued confidence in the company’s future performance amid evolving market dynamics.

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