International Business Machines (NYSE:IBM) Stock Price Up 3.9% – Should You Buy?

International Business Machines Corporation (NYSE:IBM) shares rose 3.9% on Tuesday . The stock traded as high as $235.31 and last traded at $235.0380. Approximately 7,506,864 shares changed hands during trading, a decline of 9% from the average session volume of 8,253,883 shares. The stock had previously closed at $226.31.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM and Red Hat will provide their Lightwell open-source security platform at no charge to more than 185 universities and 100 NGOs and think tanks. The program strengthens IBM’s cybersecurity and AI positioning while potentially expanding adoption among institutional users. IBM and Red Hat Offer Lightwell at No Charge to Universities, NGOs and Think Tanks
• Positive Sentiment: IBM’s sovereign-AI partnership with India-based Sarvam could help the company capture public-sector demand in India. The broader investment case also points to hybrid-cloud growth and improving earnings estimates. Can IBM’s Sovereign AI Solutions for India Propel the Stock Higher?
• Positive Sentiment: CEO Arvind Krishna said quantum computing could make a measurable contribution to IBM’s revenue and profit by 2028 or 2029, supporting the company’s longer-term growth narrative. The opportunity is strategically important but remains several years away. IBM’s Arvind Krishna Predicts Quantum Computing Will Become a Meaningful Business by 2028
• Neutral Sentiment: Recent data shows mixed institutional positioning, with Morgan Stanley, AQR and other investors adding shares while Capital World Investors and several funds reduced exposure. Reported insider activity consisted of two purchases and no sales over the past six months. IBM Stock Data and Institutional Activity
• Negative Sentiment: Two law firms have announced investigations into potential securities-fraud claims related to IBM’s disclosures and IBM Z product representations. These announcements may increase headline and litigation risk, although they do not establish wrongdoing. Pomerantz Investor Alert
• Negative Sentiment: The latest quarterly results included a revenue shortfall versus consensus, reinforcing concerns about IBM’s near-term top-line momentum even as AI demand and margin expansion remain investor priorities. IBM Rallies After Q2 Earnings Despite Revenue Miss

Analyst Ratings Changes

A number of equities analysts have commented on the company. Bank of America increased their target price on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a report on Monday, July 6th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $270.00 price target on shares of International Business Machines in a research note on Tuesday, July 21st. Wall Street Zen downgraded International Business Machines from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. Sanford C. Bernstein restated a “market perform” rating on shares of International Business Machines in a report on Thursday, July 16th. Finally, Jefferies Financial Group lowered their target price on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. Fifteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $265.40.

International Business Machines Price Performance

The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock’s 50 day simple moving average is $261.15 and its two-hundred day simple moving average is $256.89. The firm has a market capitalization of $221.44 billion, a PE ratio of 20.86, a price-to-earnings-growth ratio of 2.19 and a beta of 0.70.

International Business Machines (NYSE:IBM) last posted its quarterly 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. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same period in the prior year, the business earned $2.80 earnings per share. The business’s revenue was up 1.1% compared to the same quarter last year. On average, sell-side analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio is presently 59.98%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in International Business Machines by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock valued at $28,796,390,000 after purchasing an additional 1,439,824 shares during the last quarter. State Street Corp raised its position in shares of International Business Machines by 1.0% during the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after buying an additional 518,321 shares during the period. Geode Capital Management LLC raised its position in shares of International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock valued at $6,679,105,000 after buying an additional 336,069 shares during the period. Capital World Investors lifted its holdings in International Business Machines by 29.2% in the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after acquiring an additional 4,976,756 shares during the last quarter. Finally, Bank of America Corp DE lifted its holdings in International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock valued at $3,893,669,000 after acquiring an additional 1,049,602 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

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.