Traders Buy High Volume of International Business Machines Call Options (NYSE:IBM)

International Business Machines Corporation (NYSE:IBM) saw unusually large options trading on Monday. Stock investors acquired 133,007 call options on the stock. This represents an increase of 111% compared to the average daily volume of 63,001 call options.

International Business Machines Stock Up 1.6%

Shares of International Business Machines stock traded up $3.89 during trading hours on Monday, reaching $252.99. 8,770,661 shares of the company were exchanged, compared to its average volume of 7,189,507. International Business Machines has a 1 year low of $212.34 and a 1 year high of $332.46. The firm has a market cap of $237.79 billion, a PE ratio of 22.37, a PEG ratio of 2.58 and a beta of 0.66. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The stock’s fifty day moving average is $251.46 and its 200 day moving average is $268.51.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.60 EPS. As a group, equities research analysts forecast that International Business Machines will post 12.38 earnings per share for the current year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were paid a $1.69 dividend. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Friday, May 8th. International Business Machines’s payout ratio is presently 59.77%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on IBM. Jefferies Financial Group decreased their target price on shares of International Business Machines from $370.00 to $320.00 and set a “buy” rating on the stock in a research report on Monday, April 20th. Wedbush set a $350.00 target price on shares of International Business Machines in a report on Tuesday, June 2nd. Stifel Nicolaus set a $290.00 target price on International Business Machines in a research report on Friday, May 22nd. Roth Mkm reiterated a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Finally, Morgan Stanley increased their target price on International Business Machines from $215.00 to $225.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $304.17.

Key International Business Machines News

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

• Positive Sentiment: IBM highlighted how its internal “client zero” AI initiative helped save $4.5 billion over three years, reinforcing the company’s ability to use AI to lower costs, improve productivity, and potentially boost margins. How IBM Saved $4.5 Billion Using AI
• Positive Sentiment: IBM and Wimbledon introduced new AI-powered fan experiences and modernized digital platforms for The Championships 2026, showing continued traction for IBM’s watsonx-based offerings and its ability to land visible, branded AI deployments. Wimbledon and IBM Introduce New AI-Powered Fan Experiences and Modernized Digital Platforms for The Championships 2026
• Positive Sentiment: Several articles frame IBM as an emerging “AI value story,” suggesting investors are increasingly viewing the company as a cheaper way to gain exposure to enterprise AI than higher-priced pure plays. Is IBM (NYSE:IBM) Becoming An AI Value Story?
• Positive Sentiment: Wall Street Zen upgraded IBM to “Hold,” which may help stabilize sentiment even though it is not a strongly bullish call. Wall Street Zen Upgrades International Business Machines (NYSE:IBM) to “Hold”
• Neutral Sentiment: IBM is also being discussed in the context of rising AI adoption risks, with one article warning that greater use of AI agents can create future operational and security concerns for companies. Prediction: These 16 Words From IBM Will Prove to Be Prophetic About Artificial Intelligence’s Future
• Neutral Sentiment: Another report says Canadian organizations may not be ready for the next era of business AI, underscoring IBM’s emphasis on governance and oversight, but it does not directly change IBM’s near-term financial outlook. Can Canadian Organizations Deliver in the Next Era of Business AI? IBM Finds Many May Not Be Ready
• Negative Sentiment: Broader market commentary about IT-services stocks being sold off on AI fears could weigh on IBM sentiment, as investors worry that AI may disrupt traditional consulting and services revenue streams. Wall Street Just Sold Off These IT-Services Stocks on AI Fears. Is the Sell-Off Overdone?

Institutional Investors Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in International Business Machines by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock worth $28,796,390,000 after buying an additional 1,439,824 shares during the last quarter. State Street Corp increased its holdings in shares of International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after acquiring an additional 518,321 shares during the last quarter. Geode Capital Management LLC raised its position in shares of International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after acquiring an additional 336,069 shares in the last quarter. Capital World Investors boosted 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 purchasing an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock valued at $3,893,669,000 after purchasing an additional 1,049,602 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company 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.