International Business Machines Corporation (NYSE:IBM) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of International Business Machines Corporation (NYSE:IBM) have earned a consensus recommendation of “Moderate Buy” from the twenty-eight brokerages that are presently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation and sixteen have issued a buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $265.40.

A number of research firms have commented on IBM. Roth Capital reiterated a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. HSBC set a $175.00 price target on International Business Machines and gave the company a “reduce” rating in a research report on Thursday, July 16th. Piper Sandler raised International Business Machines to an “overweight” rating in a research note on Tuesday, June 23rd. Argus decreased their price objective 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. Finally, Wolfe Research cut shares of International Business Machines to a “peer perform” rating in a research note on Tuesday, June 23rd.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Industry research projects the global hyperscale data-center market will expand from $162.79 billion in 2024 to $608.54 billion by 2030, driven by AI, machine learning and cloud-computing demand. This supports IBM’s infrastructure, consulting and hybrid-cloud opportunities, although the report is not an IBM-specific contract announcement. Hyperscale Data Center Market Surges to $608.54 billion
• Positive Sentiment: IBM’s modular cryogenic technology is designed to help scale its quantum systems toward 1,000 programmable qubits and support its Quantum Starling plans by 2029. The development strengthens IBM’s technology narrative and long-term growth potential, though commercial revenue benefits remain several years away. Can IBM Scale Quantum Computing With Its New Cryogenic Systems?
• Positive Sentiment: A power producer and Cohesive received an award for improving workplace safety using IBM Maximo, providing third-party recognition of the software’s industrial asset-management capabilities. The item is supportive of IBM’s enterprise-software credibility but does not indicate a material near-term financial impact. CEPR and Cohesive Receive Maximo Award
• Neutral Sentiment: A Zacks review notes that IBM has risen 13.1% since its latest earnings report, indicating continued investor support after the results. However, the company’s reported revenue missed expectations while earnings per share matched estimates, leaving valuation and execution important considerations. Why Is IBM Up Since Its Last Earnings Report?
• Negative Sentiment: Bleichmar Fonti & Auld announced an investigation into potential securities-law violations related to IBM’s prior stock decline. The notice appears to be an investor-solicitation announcement rather than a finding of wrongdoing, but it can weigh on sentiment and introduce potential legal risk. IBM Ongoing Investigation

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Tanager Wealth Management LLP raised its position in shares of International Business Machines by 44.9% during the 2nd quarter. Tanager Wealth Management LLP now owns 1,436 shares of the technology company’s stock worth $404,000 after purchasing an additional 445 shares during the last quarter. Alan B Lancz & Associates Inc. acquired a new stake in International Business Machines during the 2nd quarter valued at $210,000. Ameritas Advisory Services LLC increased its position in International Business Machines by 60.4% during the second quarter. Ameritas Advisory Services LLC now owns 19,755 shares of the technology company’s stock worth $5,555,000 after buying an additional 7,438 shares in the last quarter. Kintra Wealth LLC increased its position in International Business Machines by 7.1% during the second quarter. Kintra Wealth LLC now owns 9,495 shares of the technology company’s stock worth $2,670,000 after buying an additional 626 shares in the last quarter. Finally, Aspire Capital Advisors LLC raised its holdings in shares of International Business Machines by 12.2% in the second quarter. Aspire Capital Advisors LLC now owns 1,152 shares of the technology company’s stock worth $324,000 after acquiring an additional 125 shares during the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Price Performance

IBM stock opened at $236.17 on Monday. The firm has a 50 day moving average of $247.18 and a 200-day moving average of $250.43. The company has a market cap of $222.50 billion, a price-to-earnings ratio of 20.96, a PEG ratio of 2.31 and a beta of 0.70. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. International Business Machines has a 12-month low of $199.19 and a 12-month high of $332.46.

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

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued 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 is Monday, August 10th. International Business Machines’s dividend payout ratio is 59.98%.

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.