International Business Machines (NYSE:IBM) Given "Outperform" Rating at Wedbush

Key Points

• Wedbush reissued an "Outperform" rating on IBM with a $340 price target, implying about a 33.6% upside, while analysts' consensus remains a Moderate Buy with an average target of $303.88.
• IBM beat Q1 estimates, reporting $4.52 EPS versus $4.33 expected and revenue of $19.69 billion (up 12.2% year‑over‑year), underscoring recent operational momentum.
• Strategic catalysts include expanded quantum/AI partnerships and new cybersecurity offerings that could drive growth, but the company also faces a novel DOJ false‑claims action over diversity practices that represents a potential legal and reputational risk.

International Business Machines (NYSE:IBM - Get Free Report)'s stock had its "outperform" rating reissued by equities researchers at Wedbush in a research note issued on Friday,Benzinga reports. They currently have a $340.00 price target on the technology company's stock. Wedbush's target price points to a potential upside of 33.60% from the stock's previous close.

Several other research firms also recently commented on IBM. Jefferies Financial Group restated a "buy" rating on shares of International Business Machines in a research note on Monday, February 23rd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of International Business Machines in a report on Thursday, January 22nd. Stifel Nicolaus dropped their price objective on International Business Machines from $340.00 to $290.00 and set a "buy" rating for the company in a report on Wednesday, April 8th. JPMorgan Chase & Co. reduced their target price on International Business Machines from $317.00 to $283.00 and set a "neutral" rating on the stock in a report on Wednesday, March 18th. Finally, Dbs Bank raised shares of International Business Machines from a "hold" rating to a "moderate buy" rating in a report on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $303.88.

International Business Machines Trading Up 4.0%

NYSE:IBM opened at $254.49 on Friday. International Business Machines has a twelve month low of $220.72 and a twelve month high of $324.90. The company has a market cap of $238.72 billion, a P/E ratio of 22.49, a price-to-earnings-growth ratio of 2.56 and a beta of 0.69. The business has a 50 day moving average price of $249.94 and a two-hundred day moving average price of $282.10. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, beating the consensus estimate of $4.33 by $0.19. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The firm had revenue of $19.69 billion for the quarter, compared to analysts' expectations of $19.23 billion. During the same period in the prior year, the firm earned $3.92 EPS. The business's revenue was up 12.2% on a year-over-year basis. As a group, analysts expect that International Business Machines will post 10.78 EPS for the current fiscal year.

Insider Transactions at International Business Machines

In other news, Director David N. Farr bought 1,000 shares of the company's stock in a transaction on Friday, January 30th. The stock was purchased at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the transaction, the director owned 9,258 shares of the company's stock, valued at $2,814,432. This trade represents a 12.11% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Michael Miebach acquired 434 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was acquired at an average price of $233.33 per share, with a total value of $101,265.22. Following the acquisition, the director owned 434 shares in the company, valued at $101,265.22. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders acquired 1,484 shares of company stock valued at $417,157. Insiders own 0.27% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. CVA Family Office LLC grew its holdings in International Business Machines by 1.4% during the 4th quarter. CVA Family Office LLC now owns 2,389 shares of the technology company's stock worth $708,000 after acquiring an additional 33 shares during the period. Foster Group Inc. lifted its position in shares of International Business Machines by 1.3% during the 4th quarter. Foster Group Inc. now owns 2,507 shares of the technology company's stock valued at $742,000 after acquiring an additional 33 shares during the period. New Covenant Trust Company N.A. grew its holdings in International Business Machines by 3.8% in the fourth quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company's stock worth $264,000 after purchasing an additional 33 shares during the period. McGowan Group Asset Management Inc. increased its stake in International Business Machines by 1.2% in the fourth quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company's stock valued at $798,000 after purchasing an additional 33 shares in the last quarter. Finally, CFS Investment Advisory Services LLC boosted its position in shares of International Business Machines by 0.4% during the 3rd quarter. CFS Investment Advisory Services LLC now owns 9,359 shares of the technology company's stock worth $2,878,000 after purchasing an additional 34 shares in the last quarter. 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 and the University of Illinois expand the Discovery Accelerator Institute to develop quantum‑centric supercomputing architecture, strengthening IBM’s long‑term competitive position in quantum + HPC research. IBM and the University of Illinois Urbana‑Champaign Expand Discovery Accelerator Institute to Advance AI and Quantum Computing
• Positive Sentiment: IBM Quantum’s role in the Q4Bio challenge and a $2M prize for a partnered team highlight near‑term validation of IBM’s quantum roadmap and potential commercialization paths in healthcare/biology. How IBM Quantum is Enabling Healthcare and Biology Research
• Positive Sentiment: Coverage notes IBM’s expanding presence at the intersection of quantum, AI and healthcare — including deployments and collaborations — which supports upside valuation arguments if these initiatives scale. IBM’s Quantum And AI Push Meets Healthcare As Valuation Shows Upside Potential
• Positive Sentiment: GNQ Insilico collaboration: IBM will support GNQ’s causal AI and digital twin platforms for precision medicine, a commercial proof point for IBM’s hybrid cloud + AI consulting footprint in life sciences. GNQ Insilico Plans to Accelerate Precision Medicine and Clinical AI Adoption Across Drug Development and Patient Care
• Positive Sentiment: IBM rolled out new cybersecurity tools aimed at countering AI‑driven attacks (Autonomous Security / multi‑agent digital workers), which could drive product revenue and strengthen recurring security services. IBM Launches New Cybersecurity Tools to Fight AI‑Powered Cyberattacks
• Neutral Sentiment: Analysts remain mixed on IBM (conflicted coverage), so near‑term price action may be driven more by execution and the upcoming earnings print than consensus upgrades. Analysts Conflicted on These Technology Names: ASML Holding (ASML), Apple (AAPL) and International Business Machines (IBM)
• Neutral Sentiment: Pre‑earnings coverage highlights IBM’s strong history of earnings beats and the potential for another beat, but also notes valuation premium and some falling EPS estimates — a mixed setup. IBM Stock Before Q1 Earnings: A Smart Buy or Risky Investment?
• Neutral Sentiment: Several minor PR/industry items (training courses, college rankings, third‑party certs citing IBM research) are peripheral and unlikely to move the stock materially. Boost Employability with Data Analyst Course in Delhi for Real Industry Projects with Free Alteryx, R and Gen AI Skills with IBM Certification Support by SLA Consultants India
• Negative Sentiment: The DOJ filed a novel false‑claims action alleging issues with IBM’s diversity practices — a legal risk that could create headline volatility, potential fines or reputational damage depending on how the case develops. First case of its kind, DOJ hits IBM with false claims for diversity practices

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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