International Business Machines (NYSE:IBM) Stock Rating Reaffirmed as Outperform by Royal Bank Of Canada

International Business Machines (NYSE:IBM)‘s stock had its “outperform” rating reiterated by stock analysts at Royal Bank Of Canada in a research report issued to clients and investors on Thursday, Benzinga reports. They currently have a $270.00 target price on the technology company’s stock. Royal Bank Of Canada‘s price target would indicate a potential upside of 6.96% from the stock’s previous close.

Other equities analysts have also issued research reports about the company. Morgan Stanley boosted their target price on International Business Machines from $238.00 to $240.00 and gave the stock an “equal weight” rating in a research report on Thursday. Wall Street Zen cut shares of International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, September 12th. Citic Securities increased their price objective on shares of International Business Machines from $294.00 to $297.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. The Goldman Sachs Group reiterated a “buy” rating and issued a $300.00 price target on shares of International Business Machines in a research note on Thursday. Finally, HSBC reduced their target price on shares of International Business Machines from $175.00 to $174.00 in a report on Friday, July 24th. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus target price of $266.12.

International Business Machines Stock Up 0.4%

Shares of IBM stock traded up $0.96 during trading hours on Thursday, hitting $252.42. 11,611,065 shares of the company’s stock traded hands, compared to its average volume of 7,484,246. 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 stock’s fifty day simple moving average is $232.36 and its two-hundred day simple moving average is $243.60. International Business Machines has a 12-month low of $199.19 and a 12-month high of $332.46. The stock has a market cap of $237.81 billion, a price-to-earnings ratio of 22.40, a PEG ratio of 2.32 and a beta of 0.73.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.10. The firm had revenue of $17.10 billion during 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 company’s revenue was up 4.7% on a year-over-year basis. During the same period last year, the company earned $2.65 earnings per share. On average, analysts expect that International Business Machines will post 12.34 EPS for the current 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 dated 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 transaction, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This 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 currently owned by insiders.

Hedge Funds Weigh In On International Business Machines

Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in shares of International Business Machines in the 2nd quarter worth $21,586,659,000. State Street Corp grew its holdings in International Business Machines by 2.7% in the second quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock valued at $15,760,430,000 after purchasing an additional 1,450,562 shares during the period. Bank of America Corp DE acquired a new position in shares of International Business Machines during the 2nd quarter worth about $4,214,868,000. Bank of New York Mellon Corp acquired a new stake in shares of International Business Machines in the second quarter valued at about $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in International Business Machines by 0.7% in 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 worth $2,143,245,000 after purchasing an additional 53,388 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Q3 results exceeded expectations. IBM reported revenue of $17.10 billion, up 4.7% year over year, and adjusted EPS of $2.95, surpassing analyst estimates. Software revenue rose 8%, Infrastructure increased 4%, and delayed infrastructure contracts began returning. IBM third-quarter results
• Positive Sentiment: Cash-flow outlook improved. Management raised its full-year free-cash-flow outlook, with third-quarter free cash flow reaching approximately $3 billion. The company also declared a quarterly dividend of $1.69 per share, supporting IBM’s income-investor appeal. IBM revenue and cash flow report
• Positive Sentiment: Analysts raised targets. JPMorgan increased its target to $269, RBC maintained an Outperform rating with a $270 target, and Stifel lifted its target to $260. These revisions reflect stronger software performance, margin expansion and better cash generation. Analyst forecast revisions
• Neutral Sentiment: Investors want proof the rebound will last. Although IBM maintained its full-year revenue-growth outlook, analysts highlighted management’s expectations for slower fourth-quarter momentum and questioned whether the software rebound can continue, particularly as Red Hat and Consulting remain important execution tests. Reuters report on IBM’s software rebound
• Negative Sentiment: AI spending comments pressured the stock. CEO Arvind Krishna said open-weight AI models can deliver about 90% of frontier-model performance at roughly 10% of the cost. While this supports IBM’s cost-efficient AI strategy, investors interpreted the comments as a warning that customers may become more cautious about large AI budgets, weighing on the broader AI trade and IBM’s near-term valuation.
• Negative Sentiment: Valuation remains a concern. Commentary from several analysts characterized IBM as a premium-priced company with relatively modest growth. Software growth was helped partly by the Confluent acquisition, while slow Consulting growth, debt and a narrower-than-expected gross margin limit enthusiasm despite the earnings beat. Analysis of IBM’s earnings reaction

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.