International Business Machines Corporation (NYSE:IBM) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• International Business Machines has a consensus analyst rating of “Moderate Buy”, with 12 buy ratings, 7 hold ratings and 1 strong buy. The average 12-month price target is about $294.41.
• IBM’s latest quarterly results beat expectations, posting $1.91 EPS versus $1.81 expected and revenue of $15.92 billion versus $15.60 billion expected. Revenue rose 9.5% year over year, and management said analysts expect full-year EPS of 12.4.
• The company also raised its quarterly dividend to $1.69 per share, or $6.76 annually, for a yield of about 2.9%. The increase, along with ongoing AI and quantum-computing optimism, helped keep IBM in focus despite recent stock weakness.

International Business Machines Corporation (NYSE:IBM - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty analysts that are presently covering the company, Marketbeat reports. Seven equities research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $294.4118.

A number of research analysts have commented on the stock. Oppenheimer cut their target price on shares of International Business Machines from $380.00 to $320.00 and set an "outperform" rating on the stock in a research report on Thursday, April 16th. Dbs Bank raised shares of International Business Machines from a "hold" rating to a "moderate buy" rating in a research report on Monday, January 19th. Argus set a $360.00 target price on shares of International Business Machines in a research report on Friday, January 30th. Wall Street Zen cut shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Sunday, January 11th. Finally, HSBC upgraded shares of International Business Machines from a "reduce" rating to a "hold" rating and raised their price target for the company from $218.00 to $231.00 in a report on Tuesday, April 28th.

International Business Machines Trading Down 0.8%

NYSE IBM opened at $229.39 on Friday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The company has a market capitalization of $215.60 billion, a price-to-earnings ratio of 20.28, a price-to-earnings-growth ratio of 2.40 and a beta of 0.58. The company's 50-day simple moving average is $243.05 and its two-hundred day simple moving average is $277.83. International Business Machines has a one year low of $220.72 and a one year high of $324.90.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company's revenue for the quarter was up 9.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.60 EPS. Equities analysts forecast that International Business Machines will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be issued a $1.69 dividend. The ex-dividend date is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is 59.42%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM used its Think 2026 conference to highlight progress in artificial intelligence and quantum computing, including productivity gains from AI and signs that quantum advantage may be approaching sooner than expected. That reinforces the company’s long-term growth narrative. IBM touts AI productivity gains and quantum milestones at Think conference
• Positive Sentiment: A new report on IBM’s quantum push said the company demonstrated a major accuracy breakthrough, helping show that its quantum efforts are moving beyond theory and toward commercial relevance. IBM’s Quantum Push Gets Real with 210x Accuracy Breakthrough
• Positive Sentiment: IBM was also mentioned in broader commentary about the AI build-out and in sector coverage of AI infrastructure, which keeps the company in the conversation as investors look for “pick-and-shovel” beneficiaries of AI spending. 8 Stocks on Jim Cramer’s Mad Money Recap: IBM, Corning, and AI Rally Strength
• Neutral Sentiment: Several articles note that IBM is attracting investor and analyst attention, suggesting traders are reassessing the stock’s prospects, but these items do not add a clear new catalyst on their own. International Business Machines Corporation (IBM) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Analyst commentary remains cautiously optimistic, with Wall Street still viewing IBM as a potential long-term winner even though the stock has lagged the broader market over the past year. Are Wall Street Analysts Predicting International Business Machines Stock Will Climb or Sink?
• Negative Sentiment: Recent coverage also highlighted IBM’s sharp six-month decline and concerns that AI advances could threaten parts of its legacy business, which may be weighing on sentiment. IBM Plummets 27% in 6 Months: Should You Reassess the Stock?

Insider Buying and Selling at International Business Machines

In other news, Director Michael Miebach purchased 434 shares of the stock in a transaction dated Wednesday, February 25th. The shares were acquired at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the acquisition, the director owned 434 shares of the company's stock, valued at approximately $101,265.22. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.27% of the company's stock.

Institutional Trading of International Business Machines

Institutional investors have recently modified their holdings of the company. Family CFO Inc bought a new stake in shares of International Business Machines in the 4th quarter valued at about $25,000. Basepoint Wealth LLC bought a new stake in shares of International Business Machines in the 4th quarter valued at about $25,000. Portus Wealth Advisors LLC bought a new stake in shares of International Business Machines in the 1st quarter valued at about $26,000. Mountain Hill Investment Partners Corp. bought a new stake in shares of International Business Machines in the 3rd quarter valued at about $28,000. Finally, Joseph Group Capital Management acquired a new stake in International Business Machines in the 4th quarter worth approximately $28,000. 58.96% of the stock is currently owned by institutional investors.

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.

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