International Business Machines (NYSE:IBM) Reaches New 12-Month High - Should You Buy?

Key Points

• IBM shares reached a new 52-week high of $300.34, with analysts issuing mixed ratings and price targets following the stock's performance.
• The company recently reported earnings of $2.80 per share, which exceeded consensus estimates, with revenue rising 7.7% year-over-year.
• IBM declared a quarterly dividend of $1.68 per share, reflecting an annualized dividend of $6.72 and a dividend yield of 2.2% despite a payout ratio of 109.09%.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) hit a new 52-week high on Tuesday . The company traded as high as $297.57 and last traded at $300.34, with a volume of 498748 shares trading hands. The stock had previously closed at $289.42.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on IBM shares. Melius Research upgraded shares of International Business Machines to a "strong-buy" rating in a report on Monday, July 7th. UBS Group upped their price objective on International Business Machines from $195.00 to $200.00 and gave the stock a "sell" rating in a research report on Thursday, July 24th. Royal Bank Of Canada lifted their target price on International Business Machines from $285.00 to $315.00 and gave the company an "outperform" rating in a report on Thursday, July 17th. Weiss Ratings restated a "hold (c+)" rating on shares of International Business Machines in a report on Saturday, September 27th. Finally, Erste Group Bank lowered International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, International Business Machines has a consensus rating of "Hold" and a consensus target price of $284.62.

International Business Machines Stock Performance

The firm has a 50 day moving average of $255.71 and a two-hundred day moving average of $259.70. The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87. The stock has a market cap of $277.84 billion, a PE ratio of 48.49, a PEG ratio of 4.44 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, topping 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 business had revenue of $16.98 billion during the quarter, compared to the consensus estimate of $16.58 billion. During the same quarter in the previous year, the firm earned $2.43 EPS. The company's revenue was up 7.7% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. Research analysts predict that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were issued a dividend of $1.68 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $6.72 annualized dividend and a dividend yield of 2.2%. International Business Machines's dividend payout ratio (DPR) is presently 109.09%.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently modified their holdings of IBM. Family CFO Inc acquired a new stake in shares of International Business Machines during the second quarter worth about $25,000. Winnow Wealth LLC acquired a new stake in shares of International Business Machines in the 2nd quarter worth $27,000. Christopher J. Hasenberg Inc purchased a new stake in shares of International Business Machines in the first quarter valued at about $27,000. SSA Swiss Advisors AG acquired a new position in shares of International Business Machines during the first quarter worth about $28,000. Finally, Highline Wealth Partners LLC raised its holdings in International Business Machines by 85.0% during the second quarter. Highline Wealth Partners LLC now owns 111 shares of the technology company's stock worth $33,000 after purchasing an additional 51 shares in the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

About International Business Machines

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.

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