International Business Machines Corporation (NYSE:IBM) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• IBM has a “Moderate Buy” consensus rating from 34 analysts, with 19 buys, 13 holds, and 2 sells. The average 12-month price target is $266.12, compared with a reported share price of $257.80.
• IBM exceeded quarterly expectations, reporting adjusted EPS of $2.95 versus a $2.85 estimate and revenue of $17.10 billion versus $16.82 billion expected. Revenue increased 4.7% year over year.
• The company announced a quarterly dividend of $1.69 per share, equivalent to a 2.6% annual yield, while investors continue to weigh IBM’s AI and software momentum against concerns about its debt burden and dividend sustainability.

International Business Machines Corporation (NYSE:IBM - Get Free Report) has earned a consensus rating of "Moderate Buy" from the thirty-four ratings firms that are currently covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, thirteen have assigned a hold recommendation and nineteen have assigned a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $266.12.

Several research firms recently commented on IBM. UBS Group increased their price objective on International Business Machines from $236.00 to $243.00 and gave the company a "neutral" rating in a research report on Thursday, October 22nd. Jefferies Financial Group lifted their price target on shares of International Business Machines from $270.00 to $280.00 and gave the stock a "buy" rating in a research note on Thursday, October 22nd. Sanford C. Bernstein cut their target price on shares of International Business Machines from $280.00 to $230.00 and set a "market perform" rating for the company in a research report on Thursday, July 23rd. Citic Securities boosted their target price on shares of International Business Machines from $294.00 to $297.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Finally, Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a report on Saturday, October 24th.

International Business Machines Stock Down 0.2%

NYSE:IBM opened at $257.80 on Friday. The firm has a 50-day simple moving average of $235.17 and a two-hundred day simple moving average of $249.93. The firm has a market cap of $243.65 billion, a P/E ratio of 21.98, a P/E/G ratio of 2.54 and a beta of 0.73. International Business Machines has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.80 and a current ratio of 0.85.

International Business Machines (NYSE:IBM - Get Free Report) last announced 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. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The company had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. During the same quarter last year, the firm earned $2.65 earnings per share. The firm's quarterly revenue was up 4.7% compared to the same quarter last year. Analysts predict that International Business Machines will post 12.41 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.6%. International Business Machines's dividend payout ratio is currently 57.63%.

Key International Business Machines News

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

• Positive Sentiment: IBM introduced new AI-agent security controls that combine HashiCorp Vault, Agent Identity, and watsonx Orchestrate. The tools provide centralized governance, least-privilege access, real-time credential revocation, and sandboxed execution across hybrid-cloud environments, potentially strengthening IBM’s position in enterprise AI security. IBM Debuts AI Agent Security Controls For Hybrid Cloud
• Positive Sentiment: Analysts and commentators highlighted improving momentum in IBM’s software business, including its hybrid-cloud and enterprise infrastructure operations. IBM’s approximately $12 billion in free cash flow may support continued investment and shareholder returns. IBM’s Software Business Is Picking Up Speed
• Neutral Sentiment: Research reports project strong growth in service virtualization, edge computing, configuration-management systems, SMB IT spending, and battery-warranty analytics—markets in which IBM is listed as a participant. The reports indicate long-term addressable-market opportunities but do not represent new contracts or revenue guidance for IBM. Configuration Management Systems Global Strategic Business Report
• Neutral Sentiment: IBM’s opposition to blockchain-based stock trading reflects concerns about tokenized-market structures, but the issue appears unlikely to materially affect near-term financial results. Why Oracle, Intel, and IBM Are Saying No to Blockchain-Based Stock Trading
• Negative Sentiment: Concerns about IBM’s debt load and whether its long record of dividend increases can continue are weighing on the investment case. The stock’s decline during 2026 has made the dividend more attractive, but also highlights balance-sheet and payout sustainability risks. IBM Stock Is Down 13% in 2026. Is Its Dividend Still Safe?

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.27% of the company's stock.

Institutional Trading of International Business Machines

Several large investors have recently added to or reduced their stakes in the business. Optimist Retirement Group LLC lifted its holdings in International Business Machines by 3.3% in the 3rd quarter. Optimist Retirement Group LLC now owns 10,169 shares of the technology company's stock valued at $2,236,000 after purchasing an additional 324 shares in the last quarter. Verity Asset Management Inc. boosted its stake in International Business Machines by 9.1% during the third quarter. Verity Asset Management Inc. now owns 21,442 shares of the technology company's stock worth $4,716,000 after buying an additional 1,795 shares during the period. 3Chopt Investment Partners LLC raised its stake in shares of International Business Machines by 9.9% in the 3rd quarter. 3Chopt Investment Partners LLC now owns 3,206 shares of the technology company's stock valued at $705,000 after acquiring an additional 288 shares during the period. Team Financial Group LLC purchased a new position in shares of International Business Machines during the 3rd quarter worth approximately $81,000. Finally, Southern Financial Group LLC increased its holdings in International Business Machines by 7.6% in the 3rd quarter. Southern Financial Group LLC now owns 1,659 shares of the technology company's stock valued at $365,000 after purchasing an additional 117 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors.

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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