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 reaffirmed by equities researchers at Royal Bank Of Canada in a research note issued to investors on Thursday, Benzinga reports. They presently have a $270.00 price target on the technology company’s stock. Royal Bank Of Canada‘s target price points to a potential upside of 8.49% from the company’s current price.

Other equities research analysts also recently issued research reports about the company. Stifel Nicolaus boosted their price objective on International Business Machines from $235.00 to $260.00 and gave the company a “buy” rating in a report on Thursday. Barclays boosted their price objective on International Business Machines from $262.00 to $277.00 and gave the company an “overweight” rating in a report on Thursday. Citigroup restated a “buy” rating on shares of International Business Machines in a report on Thursday. Argus decreased their price objective on International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a report on Thursday, July 16th. Finally, Jefferies Financial Group restated a “buy” rating and set a $280.00 price objective on shares of International Business Machines in a report on Thursday. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $264.72.

International Business Machines Trading Down 1.0%

IBM stock traded down $2.60 during mid-day trading on Thursday, reaching $248.86. The company’s stock had a trading volume of 7,766,471 shares, compared to its average volume of 7,463,582. The company has a market cap of $234.46 billion, a price-to-earnings ratio of 22.09, a price-to-earnings-growth ratio of 2.32 and a beta of 0.73. The business’s 50 day moving average price is $232.36 and its 200 day moving average price is $243.60. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. 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 issued its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping analysts’ consensus estimates of $2.85 by $0.10. The business 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 firm’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.65 earnings per share. On average, equities research analysts predict that International Business Machines will post 12.34 EPS for the current year.

Insider Transactions at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president 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 accessible through this hyperlink. Company insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

A number of institutional investors have recently added to or reduced their stakes in the stock. Friday Financial lifted its holdings in International Business Machines by 1.9% during the 2nd quarter. Friday Financial now owns 1,903 shares of the technology company’s stock worth $583,000 after purchasing an additional 35 shares in the last quarter. Trinity Wealth Management LLC increased its stake in International Business Machines by 2.3% in the 2nd quarter. Trinity Wealth Management LLC now owns 1,695 shares of the technology company’s stock worth $477,000 after acquiring an additional 38 shares during the last quarter. Pettinga Financial Advisors LLC increased its stake in International Business Machines by 3.6% in the 2nd quarter. Pettinga Financial Advisors LLC now owns 1,090 shares of the technology company’s stock worth $307,000 after acquiring an additional 38 shares during the last quarter. HHM Wealth Advisors LLC increased its stake in International Business Machines by 4.6% in the 2nd quarter. HHM Wealth Advisors LLC now owns 928 shares of the technology company’s stock worth $261,000 after acquiring an additional 41 shares during the last quarter. Finally, Basecamp Wealth Advisors LLC boosted its holdings 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 valued at $387,000 after acquiring an additional 44 shares during the period. Hedge funds and other institutional investors own 58.96% of the company’s stock.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM reported adjusted EPS of $2.95 and revenue of $17.10 billion, exceeding consensus estimates of approximately $2.85–$2.88 and $16.82 billion, respectively. Revenue increased 4.7% year over year, while net income rose to $2.2 billion. IBM Q3 Beat Highlights Software Growth and a Stronger Cash Outlook
• Positive Sentiment: Software revenue grew about 8%–9%, Infrastructure revenue increased 4%, and management cited stronger Red Hat demand, recovering deal activity and enterprise AI momentum. IBM also raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion year over year. IBM Q3 Earnings Call Highlights Software Growth and Cash Flow Outlook
• Positive Sentiment: Several analysts raised their targets following the report: RBC reaffirmed an Outperform rating with a $270 target, JPMorgan raised its target to $269 with an Overweight rating, and Stifel lifted its target to $260 with a Buy rating.
• Positive Sentiment: IBM declared a quarterly dividend of $1.69 per share, equivalent to $6.76 annually and an indicated yield of roughly 2.7%, supporting the stock’s income appeal.
• Neutral Sentiment: IBM maintained its full-year constant-currency revenue-growth outlook of 4%–5%. The higher cash-flow forecast is encouraging, but the unchanged revenue outlook gives investors limited evidence that growth is accelerating sustainably.
• Negative Sentiment: The earnings reaction turned negative as management’s comments raised concerns about the durability of the software rebound and the pace of AI spending. A narrower-than-expected gross margin, premium valuation, debt load and slower Consulting growth are adding to investor caution. IBM falls as analysts question staying power of software rebound

About International Business Machines

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.