International Business Machines (NYSE:IBM) Stock Bumped Up to Hold by Wall Street Zen

Key Points

• Wall Street Zen upgraded IBM from “sell” to “hold,” while the broader analyst consensus remains “Moderate Buy,” with 20 Buy, 12 Hold and 2 Sell ratings and an average price target of $266.12.
• IBM’s latest quarter exceeded expectations, with adjusted EPS of $2.95 versus a $2.85 estimate and revenue of $17.1 billion, up 4.7% year over year.
• IBM shares opened at $253.69, with a market capitalization of about $239 billion; an insider also sold 25,000 shares, reducing the senior vice president’s position by 34.34%.

International Business Machines (NYSE:IBM - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other analysts have also recently commented on the stock. Susquehanna increased their price target on shares of International Business Machines from $235.00 to $256.00 and gave the company a "neutral" rating in a research note on Wednesday. Barclays boosted their price objective on shares of International Business Machines from $262.00 to $277.00 and gave the stock an "overweight" rating in a research note on Thursday. Robert W. Baird raised their target price on shares of International Business Machines from $230.00 to $260.00 and gave the company a "neutral" rating in a research note on Thursday. Truist Financial set a $260.00 price target on International Business Machines in a report on Thursday. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $270.00 price target on shares of International Business Machines in a report on Thursday. Twenty equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $266.12.

International Business Machines Stock Performance

Shares of NYSE IBM opened at $253.69 on Friday. The stock has a 50 day moving average price of $233.06 and a 200 day moving average price of $243.70. International Business Machines has a 52 week low of $199.19 and a 52 week high of $332.46. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.74 and a current ratio of 0.85. The stock has a market capitalization of $239.01 billion, a PE ratio of 20.48, a price-to-earnings-growth ratio of 2.42 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The firm had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. During the same quarter in the previous year, the firm earned $2.65 EPS. The business's quarterly revenue was up 4.7% on a year-over-year basis. Analysts predict that International Business Machines will post 12.34 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on 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 completion of the sale, the senior vice president directly owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.27% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On International Business Machines

Large investors have recently added to or reduced their stakes in the stock. Assetmark Inc. increased its holdings in International Business Machines by 24.8% in the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company's stock worth $15,624,000 after purchasing an additional 12,791 shares in the last quarter. Flputnam Investment Management Co. bought a new position in shares of International Business Machines during the 2nd quarter worth approximately $15,237,000. Beacon Investment Advisory Services Inc. grew its holdings in International Business Machines by 939.4% in the second quarter. Beacon Investment Advisory Services Inc. now owns 30,495 shares of the technology company's stock worth $8,575,000 after purchasing an additional 27,561 shares during the period. St. Louis Financial Planners Asset Management LLC grew its stake in shares of International Business Machines by 34.6% in the 2nd quarter. St. Louis Financial Planners Asset Management LLC now owns 14,234 shares of the technology company's stock valued at $4,121,000 after buying an additional 3,659 shares during the period. Finally, Evercore Wealth Management LLC increased its position in International Business Machines by 9.0% in the 1st quarter. Evercore Wealth Management LLC now owns 62,801 shares of the technology company's stock valued at $15,222,000 after buying an additional 5,196 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines News Roundup

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

• Positive Sentiment: IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded analyst expectations. Software growth accelerated to 9% at constant currency, infrastructure demand improved, and operating pretax margins expanded by 70 basis points. IBM Beats Q3 Earnings Estimates on Software, Infrastructure Growth
• Positive Sentiment: Management raised its full-year free-cash-flow outlook, supported by stronger software performance, Red Hat demand and enterprise AI activity. Transaction-processing revenue also rose 10%, suggesting improving demand in key recurring-revenue businesses. IBM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts raised their earnings estimates or price targets following the results. Erste Group increased its FY2027 EPS forecast to $13.40 from $13.13, while JPMorgan, RBC and Stifel reiterated positive ratings and lifted targets. IBM Analyst Estimates and Ratings
• Neutral Sentiment: IBM’s updated FY2026 revenue guidance of $70.2 billion to $70.9 billion broadly brackets the $70.4 billion consensus estimate. The outlook was not meaningfully raised, leaving investors focused on whether the software rebound can continue.
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, or $6.76 annualized, reinforcing its appeal to income-oriented investors. A separate dividend-stock article highlighted IBM’s decades-long record of payout increases. IBM Declares $1.69 Dividend
• Negative Sentiment: Investors remain concerned that roughly half of the software growth benefited from the Confluent acquisition and that management’s unchanged revenue outlook implies slower growth later in the year. IBM’s comments that lower-cost, open-weight AI models can deliver comparable performance also raised questions about pricing power and AI monetization. Why Isn’t IBM’s Stock Bouncing Back After Strong Earnings Results?
• Negative Sentiment: Some analysts view IBM’s valuation as demanding relative to its modest underlying growth, while slower Consulting performance, debt and uncertainty over the durability of the software rebound could limit further upside.

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.

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