International Business Machines’ (IBM) “Outperform” Rating Reaffirmed at Royal Bank Of Canada

International Business Machines (NYSE:IBM)‘s stock had its “outperform” rating restated by Royal Bank Of Canada in a report issued on Thursday, Benzinga reports. They currently have a $270.00 price objective on the technology company’s stock. Royal Bank Of Canada‘s price target points to a potential upside of 8.85% from the company’s current price.

IBM has been the subject of a number of other reports. Argus decreased their target price on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research report on Thursday, July 16th. Daiwa Securities Group decreased their target price on shares of 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. Morgan Stanley set a $240.00 target price on shares of International Business Machines in a research report on Thursday. HSBC decreased their target price on shares of International Business Machines from $175.00 to $174.00 in a research report on Friday, July 24th. Finally, Truist Financial set a $260.00 target price on shares of International Business Machines in a research report on Thursday. Twenty analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $264.72.

International Business Machines Stock Performance

Shares of International Business Machines stock traded down $3.41 during midday trading on Thursday, hitting $248.05. The company had a trading volume of 6,562,058 shares, compared to its average volume of 7,458,424. The stock has a market cap of $233.69 billion, a price-to-earnings ratio of 22.06, a PEG ratio of 2.32 and a beta of 0.73. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company has a fifty day simple moving average of $232.36 and a 200 day simple moving average of $243.60. International Business Machines has a 12-month low of $199.19 and a 12-month high of $332.46.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.85 by $0.10. The firm had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The firm’s revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm earned $2.65 EPS. As a group, analysts predict that International Business Machines will post 12.34 earnings per share for the current fiscal year.

Insider Transactions at International Business Machines

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Friday Financial grew its position in shares of International Business Machines by 1.9% in the 2nd quarter. Friday Financial now owns 1,903 shares of the technology company’s stock valued at $583,000 after buying an additional 35 shares during the last quarter. Trinity Wealth Management LLC boosted its stake in International Business Machines by 2.3% during the 2nd quarter. Trinity Wealth Management LLC now owns 1,695 shares of the technology company’s stock worth $477,000 after purchasing an additional 38 shares during the period. Pettinga Financial Advisors LLC boosted its stake in International Business Machines by 3.6% during the 2nd quarter. Pettinga Financial Advisors LLC now owns 1,090 shares of the technology company’s stock worth $307,000 after purchasing an additional 38 shares during the period. HHM Wealth Advisors LLC boosted its stake in International Business Machines by 4.6% during the 2nd quarter. HHM Wealth Advisors LLC now owns 928 shares of the technology company’s stock worth $261,000 after purchasing an additional 41 shares during the period. Finally, Basecamp Wealth Advisors LLC boosted its stake in International Business Machines by 2.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,598 shares of the technology company’s stock worth $387,000 after purchasing an additional 44 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

More International Business Machines News

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

• Positive Sentiment: IBM delivered a broad earnings beat. Third-quarter revenue rose approximately 5% year over year to $17.1 billion, ahead of the $16.82 billion consensus estimate, while adjusted EPS of $2.95 exceeded expectations near $2.85–$2.88. Software revenue increased 8%, infrastructure revenue rose 4%, and net income climbed 26% to $2.2 billion. IBM Third-Quarter Results
• Positive Sentiment: Cash generation and the software recovery supported the bull case. IBM reported $3.0 billion of free cash flow for the quarter and raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year. Management also cited stronger Red Hat demand, returning infrastructure deals and enterprise AI momentum. IBM Q3 Earnings Call Highlights
• Positive Sentiment: Analyst support improved. JPMorgan raised its price target to $269 and assigned an overweight rating, while Stifel increased its target to $260 with a buy rating. IBM also declared a quarterly dividend of $1.69 per share, equivalent to a 2.7% annualized yield at the cited share price.
• Neutral Sentiment: IBM maintained its full-year revenue outlook. The company continues to target 4%–5% constant-currency revenue growth, but investors wanted evidence that the software rebound can persist—particularly as Red Hat and delayed enterprise deals become increasingly important. IBM Falls as Analysts Question Software Rebound
• Negative Sentiment: Guidance and management commentary overshadowed the earnings beat. CEO Arvind Krishna’s comments that lower-cost open AI models can deliver most of the performance of frontier models raised concerns about customers’ willingness to spend heavily on AI infrastructure and services. A narrower-than-expected gross margin and the unchanged revenue outlook added to concerns that recent sales acceleration may not be sustainable. IBM Earnings Call Stock Reversal

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.