International Business Machines Corporation (NYSE:IBM) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts have given International Business Machines Corporation (IBM) an average rating of "Hold", with insights from seventeen analysts, including one sell, eight hold, seven buy, and one strong buy ratings.
• The recent price target for IBM's stock varies, with Goldman Sachs raising it to $310.00, while Royal Bank of Canada set it at $315.00, indicating a positive outlook among some analysts.
• IBM reported a quarterly earnings per share (EPS) of $2.80, surpassing estimates, while also announcing a quarterly dividend of $1.68, resulting in an annual yield of 2.4%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) has been assigned an average rating of "Hold" from the seventeen analysts that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation, seven have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $286.3846.

Several research firms have recently issued reports on IBM. The Goldman Sachs Group increased their target price on shares of International Business Machines from $270.00 to $310.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. Sanford C. Bernstein started coverage on shares of International Business Machines in a research note on Monday, September 15th. They set a "market perform" rating and a $280.00 target price on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $315.00 price target on shares of International Business Machines in a research note on Thursday, October 16th. BMO Capital Markets raised their price target on shares of International Business Machines from $260.00 to $300.00 and gave the company a "market perform" rating in a research note on Friday, July 18th. Finally, Wall Street Zen downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Saturday.

International Business Machines Price Performance

NYSE:IBM opened at $283.64 on Tuesday. International Business Machines has a one year low of $203.51 and a one year high of $301.04. The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91. The firm has a market cap of $263.61 billion, a price-to-earnings ratio of 46.05, a PEG ratio of 4.33 and a beta of 0.73. The firm's fifty day moving average is $262.02 and its two-hundred day moving average is $262.25.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The technology company reported $2.80 EPS for the quarter, beating the consensus estimate of $2.65 by $0.15. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The company had revenue of $16.98 billion for the quarter, compared to analyst estimates of $16.58 billion. During the same period in the prior year, the company earned $2.43 earnings per share. The firm's revenue was up 7.7% on a year-over-year basis. International Business Machines has set its FY 2025 guidance at EPS. Research analysts expect that International Business Machines will post 10.78 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Friday, August 8th were issued a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.4%. The ex-dividend date was Friday, August 8th. International Business Machines's dividend payout ratio (DPR) is 109.09%.

Institutional Investors Weigh In On International Business Machines

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Family CFO Inc acquired a new position in shares of International Business Machines during the second quarter worth about $25,000. Christopher J. Hasenberg Inc purchased a new position in shares of International Business Machines in the first quarter valued at $27,000. Winnow Wealth LLC bought a new position in shares of International Business Machines in the 2nd quarter worth about $27,000. SSA Swiss Advisors AG bought a new stake in International Business Machines in the 1st quarter valued at about $28,000. Finally, Dagco Inc. acquired a new position in International Business Machines during the 1st quarter valued at about $31,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company Profile

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.