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

Shares of International Business Machines Corporation (NYSE:IBM) have been given an average recommendation of “Moderate Buy” by the twenty ratings firms that are presently covering the company, MarketBeat reports. Eight equities research analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $320.8667.

A number of research firms have commented on IBM. Wedbush restated an “outperform” rating and set a $340.00 target price on shares of International Business Machines in a research note on Tuesday, February 24th. Oppenheimer set a $380.00 price objective on shares of International Business Machines and gave the stock an “outperform” rating in a research note on Thursday, January 29th. Royal Bank Of Canada set a $361.00 target price on shares of International Business Machines in a report on Thursday, January 29th. Jefferies Financial Group reissued a “buy” rating on shares of International Business Machines in a report on Monday, February 23rd. Finally, Evercore upped their price objective on International Business Machines from $330.00 to $345.00 and gave the stock an “outperform” rating in a research note on Thursday, January 29th.

International Business Machines Price Performance

Shares of International Business Machines stock opened at $239.78 on Monday. The stock has a market cap of $224.92 billion, a P/E ratio of 21.51, a P/E/G ratio of 2.41 and a beta of 0.73. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. The stock’s fifty day moving average is $287.17 and its 200 day moving average is $284.24. International Business Machines has a one year low of $214.50 and a one year high of $324.90.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 EPS for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business had revenue of $19.69 billion during the quarter, compared to analysts’ expectations of $19.23 billion. During the same quarter in the prior year, the business posted $3.92 earnings per share. The business’s quarterly revenue was up 12.2% on a year-over-year basis. Sell-side analysts anticipate that International Business Machines will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be issued a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, February 10th. International Business Machines’s dividend payout ratio (DPR) is 60.27%.

Insider Activity at International Business Machines

In related news, Director Michael Miebach purchased 434 shares of the firm’s stock in a transaction on Wednesday, February 25th. The shares were acquired at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the purchase, the director directly owned 434 shares in the company, valued at $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director David N. Farr acquired 1,000 shares of the business’s stock in a transaction dated Friday, January 30th. The shares were purchased at an average price of $304.00 per share, with a total value of $304,000.00. Following the transaction, the director owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. This represents a 12.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders have bought 1,484 shares of company stock worth $417,157. Company insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

Several institutional investors have recently added to or reduced their stakes in IBM. CVA Family Office LLC raised its stake in International Business Machines by 1.4% during the fourth quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock valued at $708,000 after purchasing an additional 33 shares in the last quarter. Foster Group Inc. increased its holdings in shares of International Business Machines by 1.3% in the 4th quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock worth $742,000 after buying an additional 33 shares during the last quarter. New Covenant Trust Company N.A. raised its position in shares of International Business Machines by 3.8% during the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock valued at $264,000 after buying an additional 33 shares in the last quarter. McGowan Group Asset Management Inc. lifted its holdings in shares of International Business Machines by 1.2% in the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock valued at $798,000 after acquiring an additional 33 shares during the last quarter. Finally, CFS Investment Advisory Services LLC grew its position in International Business Machines by 0.4% in the third quarter. CFS Investment Advisory Services LLC now owns 9,359 shares of the technology company’s stock worth $2,878,000 after acquiring an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

Key International Business Machines News

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

• Positive Sentiment: UBS upgraded IBM (from Sell to Neutral), which helped spark buying interest and provided a near‑term catalyst by arguing the recent selloff improved the stock’s risk/reward. UBS upgrades International Business Machines (IBM)
• Positive Sentiment: IBM won a government/defense-related contract (up to ~$112M) to modernize commissary pricing systems — a concrete services booking that supports revenue visibility in consulting/integration work. Can IBM’s New Defense Contract Win Boost Top-Line Growth?
• Positive Sentiment: Company insiders (directors) made small share purchases, which investors often view as a vote of confidence after recent price weakness. International Business Machines (NYSE:IBM) Director Michelle Howard Buys 50 Shares
• Positive Sentiment: Several analysts and deep-dive pieces argue the earlier AI-driven selloff was overdone given IBM’s solid Q4 results, cash flow and strategic positioning in hybrid cloud/AI — supporting a recovery narrative. IBM’s Steep Drop on AI Fears May Be an Overreaction
• Neutral Sentiment: Morgan Stanley trimmed its price target to $247 and moved to an “equal weight” stance — this tempers upside expectations and can cap near‑term momentum without being a full downgrade. Morgan Stanley Lowers International Business Machines (NYSE:IBM) Price Target to $247.00
• Neutral Sentiment: IBM’s security research (2026 X‑Force Threat Intelligence Index) highlights rising ransomware and cyber threats — a mixed signal: higher market risk overall but potential tailwinds for IBM’s security services. Ransomware Surges 49% as AI Makes Cyberattacks Faster and Easier, IBM Says
• Negative Sentiment: Anthropic’s new COBOL/legacy modernization tools (Claude Code) triggered the earlier steep selloff amid fears these AI tools could erode IBM’s services revenue from legacy modernization — this remains the primary near‑term downside risk. IBM Is Just AI’s Latest Victim
• Negative Sentiment: High‑profile commentary (e.g., Jim Cramer) highlighted the abrupt drop after Anthropic’s announcement, amplifying short‑term fear and volatility even though some analysts call the reaction overblown. Jim Cramer on International Business Machines

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.