International Business Machines (NYSE:IBM) Trading 1.4% Higher – Still a Buy?

International Business Machines Corporation (NYSE:IBM) shares traded up 1.4% during mid-day trading on Tuesday . The company traded as high as $282.57 and last traded at $281.7830. 7,284,440 shares changed hands during trading, a decline of 0% from the average daily volume of 7,301,855 shares. The stock had previously closed at $278.00.

International Business Machines News Roundup

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

• Positive Sentiment: IBM unveiled what it says is the world’s first 0.7-nanometer semiconductor technology, a potential long-term signal that the company remains relevant in advanced computing and chip innovation. International Business Machines (IBM) Unveils World’s First 0.7-Nanometer Semiconductor Tech
• Positive Sentiment: Analysts and commentators continue to point to IBM’s quantum computing efforts as a possible future catalyst, with federal support for quantum technology and growing interest in the next computing breakthrough. IQM Begins Trading: What to Know About the Newly Listed Quantum Stock
• Positive Sentiment: IBM reportedly picked Stagwell as its creative partner to refresh global branding, aligning marketing with its AI, hybrid cloud, and quantum strategy. IBM (IBM) Picks Stagwell To Rework Its Global Brand Playbook
• Neutral Sentiment: Several pieces suggest IBM could beat expectations again when it reports next quarter, reflecting continued confidence in its earnings pattern. Will IBM (IBM) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: One article argues IBM’s stock may be pricing in a very wide range of outcomes, underscoring uncertainty around how quickly its AI and quantum bets translate into earnings. Are You Prepared for IBM’s $260 Price Swing?
• Negative Sentiment: IBM has lagged its industry over the past three months, and one report warns that AI-driven competition in legacy software modernization could pressure parts of its business even as hybrid cloud demand helps offset the risk. IBM Stock Lags Industry in the Past 3 Months: An Opportunity to Buy?
• Negative Sentiment: There is also execution risk around IBM’s quantum thesis, with commentary noting that the opportunity is real but still far from proven at scale. This Tech Stock Could Benefit From the Next Computing Breakthrough

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Jefferies Financial Group started coverage on International Business Machines in a research note on Tuesday, June 23rd. They issued a “buy” rating on the stock. Oppenheimer cut their price target on International Business Machines from $380.00 to $320.00 and set an “outperform” rating for the company in a report on Thursday, April 16th. Wolfe Research downgraded International Business Machines to a “peer perform” rating in a research report on Tuesday, June 23rd. Roth Mkm reaffirmed a “buy” rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Finally, Needham & Company LLC assumed coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating for the company. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and an average price target of $306.76.

International Business Machines Price Performance

The company has a market capitalization of $271.58 billion, a price-to-earnings ratio of 25.51, a P/E/G ratio of 2.91 and a beta of 0.68. The company has a fifty day simple moving average of $255.59 and a two-hundred day simple moving average of $266.34. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate of $1.81 by $0.10. The company had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm’s revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.60 EPS. As a group, research analysts anticipate that International Business Machines Corporation will post 12.4 earnings per share for the current year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid 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 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s payout ratio is 59.77%.

Institutional Trading of International Business Machines

Institutional investors have recently made changes to their positions in the stock. Basepoint Wealth LLC purchased a new position in shares of International Business Machines in the 4th quarter worth about $25,000. Family CFO Inc purchased a new stake in shares of International Business Machines during the 4th quarter worth about $25,000. Joseph Group Capital Management acquired a new stake in International Business Machines during the 4th quarter worth approximately $28,000. Cornerstone Financial Management LLC purchased a new position in International Business Machines in the fourth quarter valued at approximately $28,000. Finally, SWAN Capital LLC acquired a new position in International Business Machines during the third quarter valued at approximately $28,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

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.