International Business Machines (NYSE:IBM) Stock Price Up 2.8% – Here’s Why

International Business Machines Corporation (NYSE:IBM) shares shot up 2.8% during trading on Thursday. The stock traded as high as $227.31 and last traded at $226.6990. 8,639,919 shares changed hands during mid-day trading, an increase of 14% from the average session volume of 7,558,105 shares. The stock had previously closed at $220.51.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM advanced to Stage C, the final phase of the Defense Advanced Research Projects Agency’s Quantum Benchmarking Initiative. Independent experts will evaluate IBM’s quantum hardware, architecture and systems engineering, providing a significant credibility boost to its plan to develop a fault-tolerant quantum computer by 2029. IBM Gets Defense Dept. Quantum Stamp of Approval
• Positive Sentiment: The DARPA milestone strengthens IBM’s position in the emerging quantum-computing market and may improve investor confidence in future commercial and government opportunities. IBM is targeting industrially useful, fault-tolerant quantum computing before DARPA’s broader 2033 objective. IBM enters DARPA testing phase for fault-tolerant quantum computing
• Positive Sentiment: Analysts and market commentary describe IBM’s valuation as increasingly attractive after its recent decline, particularly if growth in AI and consulting rebounds. IBM also introduced a joint SAP cloud ERP offering intended to help midsize businesses modernize operations and prepare for AI adoption. IBM’s Valuation is Getting Interesting as AI and Consulting Rebound
• Neutral Sentiment: IBM and Red Hat reported remediating more than 400 previously unknown open-source vulnerabilities through their Lightwell initiative. The announcement supports IBM’s cybersecurity and open-source credentials but is unlikely to materially affect near-term financial results.
• Negative Sentiment: 11:11 Systems acquired select IBM VMware Cloud Service Provider enterprise customers, indicating some customer attrition in IBM’s VMware-related cloud services. The transaction appears limited in scope, but it highlights competitive pressure in hybrid cloud and managed infrastructure. 11:11 Systems Acquires Select IBM VMware Cloud Service Provider Enterprise Customers
• Negative Sentiment: Investors remain cautious ahead of IBM’s October 21 third-quarter earnings report. The prior quarter missed revenue expectations after large deals were delayed, and the stock’s recent underperformance has kept concerns about a prolonged growth slowdown in focus. What Happens To IBM Stock If Its Slowdown Lasts?

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Bank of America decreased their price target on International Business Machines from $330.00 to $280.00 and set a “buy” rating for the company in a research note on Wednesday, July 15th. Argus cut 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 note on Thursday, July 16th. Robert W. Baird began coverage on shares of International Business Machines in a research report on Tuesday, July 21st. They issued a “neutral” rating and a $230.00 target price for the company. Stifel Nicolaus dropped their price target on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a research report on Monday, July 20th. Finally, Susquehanna upped their price target on shares of International Business Machines from $225.00 to $235.00 and gave the stock a “neutral” rating in a research note on Monday, August 31st. Eighteen investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $253.52.

International Business Machines Stock Performance

The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The company’s 50-day moving average price is $232.14 and its two-hundred day moving average price is $244.23. The company has a market cap of $213.58 billion, a P/E ratio of 20.12, a price-to-earnings-growth ratio of 2.11 and a beta of 0.73.

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

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date was Monday, August 10th. International Business Machines’s dividend payout ratio is 59.98%.

Insider Buying and Selling at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.27% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On International Business Machines

Several hedge funds have recently modified their holdings of the stock. Assetmark Inc. lifted its holdings in shares of International Business Machines by 24.8% during the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock worth $15,624,000 after purchasing an additional 12,791 shares during the period. Flputnam Investment Management Co. acquired a new stake in International Business Machines in the second quarter valued at $15,237,000. Beacon Investment Advisory Services Inc. increased its holdings in International Business Machines by 939.4% in the second quarter. Beacon Investment Advisory Services Inc. now owns 30,495 shares of the technology company’s stock valued at $8,575,000 after purchasing an additional 27,561 shares during the period. St. Louis Financial Planners Asset Management LLC raised its position in International Business Machines by 34.6% during the 2nd quarter. St. Louis Financial Planners Asset Management LLC now owns 14,234 shares of the technology company’s stock worth $4,121,000 after purchasing an additional 3,659 shares during the last quarter. Finally, Evercore Wealth Management LLC lifted its holdings in International Business Machines by 9.0% during the 1st quarter. Evercore Wealth Management LLC now owns 62,801 shares of the technology company’s stock worth $15,222,000 after buying an additional 5,196 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.