International Business Machines Corporation (NYSE:IBM) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on IBM, with 15 buy, 11 hold and one sell rating among 27 firms. The average 12-month price target is $265.40, above the reported opening price of $234.79.
• IBM’s latest quarterly results matched the $2.93-per-share earnings estimate, while revenue of $17.16 billion fell short of the $17.46 billion consensus but increased 1.1% year over year.
• IBM declared a quarterly dividend of $1.69, equivalent to $6.76 annually and a 2.9% yield. Recent AI partnerships, including agreements with OpenAI and Together AI, could support growth, though investors remain focused on execution and near-term revenue impact.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) have been given an average rating of "Moderate Buy" by the twenty-seven research firms that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and fifteen have given a buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $265.40.

IBM has been the subject of a number of recent research reports. JPMorgan Chase & Co. cut their price target on International Business Machines from $291.00 to $250.00 and set an "overweight" rating for the company in a research note on Friday, July 17th. Bank of America boosted their price target on International Business Machines from $315.00 to $330.00 and gave the company a "buy" rating in a research note on Monday, July 6th. DZ Bank upgraded International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective on the stock in a report on Friday, April 24th. Jefferies Financial Group reduced their target price on shares of 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. Finally, Wolfe Research downgraded shares of International Business Machines to a "peer perform" rating in a research report on Tuesday, June 23rd.

International Business Machines Trading Up 0.2%

NYSE IBM opened at $234.79 on Monday. International Business Machines has a 1-year low of $199.19 and a 1-year high of $332.46. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The company has a market capitalization of $221.20 billion, a PE ratio of 20.83, a price-to-earnings-growth ratio of 2.30 and a beta of 0.70. The firm's fifty day simple moving average is $251.38 and its 200-day simple moving average is $252.89.

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

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's payout ratio is presently 59.98%.

Hedge Funds Weigh In On International Business Machines

Several hedge funds have recently bought and sold shares of IBM. Brighton Jones LLC grew its holdings in International Business Machines by 12.4% during the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after purchasing an additional 2,323 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in shares of International Business Machines by 10.6% in the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after buying an additional 186 shares during the last quarter. Jump Financial LLC bought a new stake in shares of International Business Machines during the 2nd quarter worth $211,000. Ieq Capital LLC boosted its holdings in shares of International Business Machines by 2.2% during the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock worth $11,383,000 after buying an additional 843 shares during the period. Finally, Vivaldi Capital Management LP grew its stake in International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after buying an additional 106 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s strategic partnership with OpenAI will embed OpenAI models and tools, including GPT-5.6, into IBM Consulting’s enterprise AI platform. IBM also plans to establish a dedicated OpenAI Practice and train thousands of consultants and engineers, potentially strengthening its position in regulated industries such as finance, government, telecommunications and retail. IBM partners with OpenAI to bolster enterprise AI push
• Positive Sentiment: IBM’s $240 million, multi-year agreement with Together AI will build an NVIDIA-powered AI inference cluster on IBM Cloud. Strong anticipated demand could support growth in IBM’s cloud infrastructure and high-performance AI workloads. Can IBM’s Together AI Cloud Deal Boost Its Growth Prospects?
• Positive Sentiment: IBM-reported research indicates that 85% of organizations planned to increase security spending by May, up from 64% during the prior period, as companies respond to frontier-AI cyber threats. This could benefit IBM’s cybersecurity, consulting and AI automation businesses. Frontier AI Threats Drive Companies to Boost Security Budgets
• Neutral Sentiment: Some coverage characterizes IBM as a relatively attractive technology investment because of its steadier earnings outlook, valuation and dividend, while other commentary highlights longer-term opportunities in quantum computing. These factors may provide support but are unlikely to resolve near-term growth concerns. AST SpaceMobile vs. IBM: Which Tech Stock is the Better Buy Now?
• Negative Sentiment: IBM’s shares have declined even after the OpenAI announcement, suggesting investors want evidence that the alliance can accelerate sales and profits. The partnership’s costs, implementation timeline and ability to convert consulting demand into recurring revenue remain key uncertainties. IBM Stock Drops Despite Major OpenAI Partnership
• Negative Sentiment: Bleichmar Fonti & Auld LLP announced an investigation into potential securities fraud following IBM’s significant stock decline. The announcement is primarily an attorney solicitation and does not establish wrongdoing, but it adds headline and litigation risk. IBM securities fraud investigation reminder

International Business Machines Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source