International Business Machines (NYSE:IBM) Shares Gap Up on Analyst Upgrade

International Business Machines Corporation (NYSE:IBM)’s share price gapped up before the market opened on Tuesday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $252.22, but opened at $261.58. JPMorgan Chase & Co. now has a $291.00 price target on the stock, up from their previous price target of $270.00. International Business Machines shares last traded at $264.8110, with a volume of 3,577,770 shares changing hands.

Several other equities analysts have also commented on IBM. Needham & Company LLC started coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating on the stock. BMO Capital Markets cut their target price on International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a research note on Thursday, April 23rd. Morgan Stanley increased their price target on shares of International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a research report on Thursday, April 23rd. Roth Mkm reissued a “buy” rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Finally, HSBC raised International Business Machines from a “reduce” rating to a “hold” rating and boosted their target price for the company from $218.00 to $231.00 in a research note on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and a consensus price target of $306.94.

International Business Machines News Roundup

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

• Positive Sentiment: JPMorgan upgraded IBM from neutral to overweight and raised its price target to $291 from $270, signaling more upside after recent weakness. Article Title
• Positive Sentiment: Trump publicly praised IBM CEO Arvind Krishna at a White House quantum event, reinforcing investor enthusiasm that IBM could be a key winner in the emerging quantum-computing buildout. Article Title
• Positive Sentiment: The broader quantum-computing sector is getting a policy boost from two executive orders fast-tracking the technology, helping IBM shares move higher alongside peers. Article Title
• Positive Sentiment: IBM also announced a partnership with OpenAI to bring frontier AI into cyber defense, adding another positive AI-related growth narrative for the stock. Article Title
• Neutral Sentiment: IBM continues to highlight AI-driven efficiency gains, including a reported $4.5 billion in savings from its “client zero” initiative, which supports the company’s AI credibility but is less of an immediate stock catalyst. Article Title

Institutional Trading of International Business Machines

A number of institutional investors have recently modified their holdings of the company. Family CFO Inc purchased a new position in International Business Machines during the 4th quarter valued at about $25,000. Basepoint Wealth LLC bought a new stake in shares of International Business Machines in the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC purchased a new position in shares of International Business Machines during the first quarter valued at approximately $26,000. Joseph Group Capital Management purchased a new position in shares of International Business Machines during the fourth quarter valued at approximately $28,000. Finally, Cornerstone Financial Management LLC bought a new position in shares of International Business Machines during the fourth quarter valued at approximately $28,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Price Performance

The business has a 50 day moving average of $251.77 and a 200 day moving average of $268.17. The company has a market cap of $246.65 billion, a PE ratio of 23.20, a price-to-earnings-growth ratio of 2.58 and a beta of 0.66. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data 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. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same period in the previous year, the firm earned $1.60 EPS. The company’s quarterly revenue was up 9.5% compared to the same quarter last year. As a group, research analysts predict that International Business Machines Corporation will post 12.38 EPS for the current year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were given a dividend of $1.69 per share. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Friday, May 8th. International Business Machines’s dividend payout ratio is presently 59.77%.

About International Business Machines

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.