International Business Machines (NYSE:IBM) Shares Up 1.6% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s share price traded up 1.6% on Tuesday. The company traded as high as $233.50 and last traded at $230.7610. 5,090,666 shares changed hands during trading, a decline of 32% from the average session volume of 7,501,761 shares. The stock had previously closed at $227.02.

International Business Machines News Roundup

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

• Positive Sentiment: RBC reaffirmed an “outperform” rating and assigned a $270 price target, implying approximately 17% upside from the referenced trading level. Benzinga analyst update
• Positive Sentiment: IBM advanced to Stage C of DARPA’s Quantum Benchmarking Initiative, placing it among the leading companies competing for validation in quantum computing. The development strengthens IBM’s long-term technology narrative, although commercial revenue benefits may take time. DARPA quantum computing article
• Positive Sentiment: The Pentagon’s roughly $350 million quantum-computing initiative highlights growing government support for the sector. IBM may benefit from its research capabilities and new quantum tools, though IonQ appears positioned to capture more immediate attention and funding. Pentagon quantum funding article
• Positive Sentiment: IBM is being presented as a potentially attractive retirement-stock choice because of its diversified revenue base and dividend yield, cited at approximately 2.98%. This income appeal may support demand despite the stock being out of favor with some investors. Cisco versus IBM retirement-stock comparison
• Neutral Sentiment: Comparisons with Arista Networks, VNET Group, and Axe Compute emphasize IBM’s diversified business but also its higher leverage. One comparison cited IBM’s debt-to-equity ratio at roughly 2.1 times, versus Arista’s zero debt, making IBM less financially conservative even though its revenue base is broader. Arista Networks versus IBM comparison
• Negative Sentiment: Truist Securities initiated coverage with a “hold” rating, limiting the immediate analyst-rating catalyst and underscoring cautious sentiment toward IBM. Truist IBM coverage

Wall Street Analyst Weigh In

IBM has been the subject of several analyst reports. Daiwa Securities Group decreased their target price on International Business Machines from $247.00 to $217.00 and set a “neutral” rating for the company in a research report on Wednesday, July 29th. Jefferies Financial Group dropped their target price on International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Citigroup dropped their target price on International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a report on Friday, July 24th. KeyCorp cut International Business Machines to a “sector weight” rating in a report on Tuesday, June 23rd. Finally, BMO Capital Markets dropped their price objective on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research note on Thursday, July 23rd. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $252.96.

International Business Machines Price Performance

The business has a fifty day moving average of $232.30 and a 200 day moving average of $243.84. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The stock has a market cap of $217.41 billion, a PE ratio of 20.48, a P/E/G ratio of 2.16 and a beta of 0.73.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. International Business Machines’s quarterly revenue was up 1.1% on a year-over-year basis. During the same period in the prior year, the company posted $2.80 EPS. Sell-side analysts anticipate 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. Shareholders of record on Monday, August 10th were paid a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Monday, August 10th. International Business Machines’s dividend payout ratio is 59.98%.

Insider Buying and Selling

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares of the company’s stock, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Several large investors have recently modified their holdings of IBM. BlackRock Inc. acquired a new stake in International Business Machines during the second quarter worth about $21,586,659,000. State Street Corp raised its position in shares of International Business Machines by 2.7% during the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock worth $15,760,430,000 after purchasing an additional 1,450,562 shares during the period. Bank of America Corp DE lifted its holdings in shares of International Business Machines by 7.0% in the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after purchasing an additional 1,049,602 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of International Business Machines in the 2nd quarter worth approximately $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in International Business Machines by 0.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock valued at $2,143,245,000 after purchasing an additional 53,388 shares during the period. Institutional investors own 58.96% of the company’s stock.

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.