International Business Machines (NYSE:IBM) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded IBM from “sell” to “hold,” while broader analyst sentiment remains “Moderate Buy” with an average price target of $265.40.
• IBM’s latest quarterly earnings matched expectations at $2.93 per share, but revenue of $17.16 billion fell short of the $17.46 billion consensus estimate, keeping growth and AI monetization under scrutiny.
• Senior vice president Robert David Thomas sold 25,000 IBM shares for approximately $5.76 million; insiders own just 0.27% of the company, while institutional investors hold 58.96%.

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 report issued on Saturday.

Other equities research analysts have also issued research reports about the stock. Susquehanna lowered their price target on shares of International Business Machines from $303.00 to $225.00 and set a "neutral" rating on the stock in a report on Friday, July 24th. Weiss Ratings lowered shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 24th. Craig Hallum started coverage on International Business Machines in a report on Wednesday, August 19th. They set a "buy" rating on the stock. Barclays dropped their target price on International Business Machines from $288.00 to $262.00 and set an "overweight" rating for the company in a report on Thursday, July 23rd. Finally, Oppenheimer lowered International Business Machines from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 15th. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $265.40.

International Business Machines Stock Down 1.3%

IBM stock opened at $235.78 on Friday. International Business Machines has a twelve month low of $199.19 and a twelve 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. The company has a market cap of $222.14 billion, a PE ratio of 20.92, a price-to-earnings-growth ratio of 2.34 and a beta of 0.70. The business's 50-day simple moving average is $244.57 and its 200 day simple moving average is $248.65.

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

Insider Activity

In other news, SVP Robert David 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 transaction of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares of the company's stock, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.27% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Basepoint Wealth LLC bought a new position in International Business Machines in the fourth quarter valued at about $25,000. Portus Wealth Advisors LLC bought a new stake in International Business Machines during the 1st quarter worth about $26,000. Harborfront Financial Group LLC acquired a new position in International Business Machines during the 2nd quarter valued at about $27,000. Cornerstone Financial Management LLC acquired a new position in International Business Machines during the 4th quarter valued at about $28,000. Finally, Hara Capital LLC bought a new position in shares of International Business Machines in the 2nd quarter valued at about $28,000. 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’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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