International Business Machines' (IBM) "Outperform" Rating Reaffirmed at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its “Outperform” rating on IBM with a $270 price target, implying approximately 16% upside from the prior close.
• IBM shares rose 2.5% to $232.66, while analyst sentiment remained mixed: the stock has a consensus “Hold” rating and an average price target of $252.96.
• IBM’s latest quarterly results met earnings expectations at $2.93 per share, but revenue of $17.16 billion fell short of forecasts despite growing 1.1% year over year.

International Business Machines (NYSE:IBM - Get Free Report)'s stock had its "outperform" rating reaffirmed by Royal Bank Of Canada in a note issued to investors on Tuesday, Benzinga reports. They presently have a $270.00 target price on the technology company's stock. Royal Bank Of Canada's price objective indicates a potential upside of 16.05% from the company's previous close.

Several other equities analysts have also recently issued reports on IBM. Piper Sandler raised International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. Truist Financial initiated coverage on International Business Machines in a report on Friday. They issued a "hold" rating and a $240.00 target price for the company. Jefferies Financial Group decreased their price target on International Business Machines from $320.00 to $260.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Citigroup lowered their price target on International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Finally, Craig Hallum initiated coverage on International Business Machines in a research report on Wednesday, August 19th. They set a "buy" rating on the stock. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $252.96.

International Business Machines Stock Up 2.5%

International Business Machines stock traded up $5.64 during trading hours on Tuesday, hitting $232.66. The stock had a trading volume of 1,594,642 shares, compared to its average volume of 7,483,036. The stock's 50-day moving average price is $232.30 and its 200-day moving average price is $243.84. The stock has a market capitalization of $219.20 billion, a P/E ratio of 20.60, a price-to-earnings-growth ratio of 2.16 and a beta of 0.73. International Business Machines has a 12-month low of $199.19 and a 12-month high of $332.46. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting analysts' consensus estimates of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business's revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.80 earnings per share. Equities research analysts anticipate that International Business Machines will post 12.33 EPS for the current fiscal year.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction on 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 completion of the sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.27% of the company's stock.

Institutional Trading of International Business Machines

Several large investors have recently modified their holdings of the company. Assetmark Inc. raised its position 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 acquiring an additional 12,791 shares during the period. Flputnam Investment Management Co. purchased a new position in shares of International Business Machines during the 2nd quarter worth $15,237,000. Beacon Investment Advisory Services Inc. grew its position in shares of International Business Machines by 939.4% during the 2nd quarter. Beacon Investment Advisory Services Inc. now owns 30,495 shares of the technology company's stock valued at $8,575,000 after acquiring an additional 27,561 shares during the period. St. Louis Financial Planners Asset Management LLC grew its position in shares of International Business Machines by 34.6% during 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 acquiring an additional 3,659 shares during the period. Finally, Evercore Wealth Management LLC increased its stake in shares of 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 worth $15,222,000 after purchasing an additional 5,196 shares in the last quarter. Institutional investors own 58.96% of the company's stock.

More International Business Machines News

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

• Positive Sentiment: IBM and IonQ advanced to Stage C of DARPA’s Quantum Benchmarking Initiative. The development validates IBM’s quantum-computing efforts and could improve its positioning in a strategic growth market. However, IonQ was described as the current leader in accuracy, so the benefit to IBM remains competitive rather than decisive. DARPA Just Revealed the 2 Best Quantum Computing Stocks to Buy Now
• Positive Sentiment: The Pentagon’s roughly $350 million quantum initiative highlights potential long-term demand for quantum-computing providers, including IBM. Government backing may strengthen IBM’s research partnerships and commercial credibility, although the articles do not indicate how much funding, if any, will flow directly to IBM. The Pentagon's $350 Million Quantum Push
• Neutral Sentiment: IBM was included in several analyst and technology-stock roundups, including comparisons with TSMC and Manhattan Associates and coverage of high-dividend technology stocks. These reports provide visibility but offer no significant new earnings catalyst. Analysts Offer Insights on Technology Companies
• Neutral Sentiment: Articles noted that IBM unveiled new quantum-computing tools and remains an active industry participant. The updates support IBM’s long-term innovation narrative, but their impact on revenue and profitability is not yet clear. Quantum Computing News
• Negative Sentiment: Truist Securities initiated coverage of IBM with a “Hold” rating. The neutral stance may limit upside expectations and signals that the stock’s valuation and established-business growth profile may already reflect much of its near-term potential. Truist Securities Initiates Coverage of IBM at Hold

International Business Machines Company Profile

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM's portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.