International Business Machines (NYSE:IBM) Shares Up 1.7% - Time to Buy?

Key Points

• International Business Machines (IBM) shares increased by 1.7%, reaching a last trade price of $280.97, with trading volume declining by 32% compared to its average volume.
• Multiple analysts have adjusted their ratings, with one firm issuing a strong-buy rating and the consensus price target being $286.38.
• The company recently posted earnings of $2.80 per share, surpassing estimates and marking a 7.7% increase in revenue year-over-year.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shot up 1.7% during trading on Wednesday . The company traded as high as $285.45 and last traded at $280.97. 3,230,322 shares were traded during mid-day trading, a decline of 32% from the average session volume of 4,736,062 shares. The stock had previously closed at $276.15.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. Sanford C. Bernstein assumed coverage on International Business Machines in a research note on Monday, September 15th. They set a "market perform" rating and a $280.00 price target for the company. UBS Group increased their target price on International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a research note on Thursday, July 24th. JPMorgan Chase & Co. upped their price target on International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. Wall Street Zen raised International Business Machines from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Finally, Melius Research raised International Business Machines to a "strong-buy" rating in a report on Monday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, International Business Machines has an average rating of "Hold" and a consensus price target of $286.38.

International Business Machines Price Performance

The company has a 50-day moving average price of $259.20 and a 200-day moving average price of $261.11. 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 capitalization of $261.13 billion, a P/E ratio of 45.61, a price-to-earnings-growth ratio of 4.27 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results 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 return on equity of 37.62% and a net margin of 9.11%.The firm had revenue of $16.98 billion for the quarter, compared to analyst estimates of $16.58 billion. During the same period in the previous year, the company posted $2.43 earnings per share. The company's revenue for the quarter was up 7.7% on a year-over-year basis. International Business Machines has set its FY 2025 guidance at EPS. On average, sell-side analysts predict that International Business Machines Corporation will post 10.78 earnings per share 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 given a $1.68 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.4%. International Business Machines's payout ratio is currently 109.09%.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently bought and sold shares of IBM. Brighton Jones LLC boosted its holdings in shares of International Business Machines by 12.4% during the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock worth $4,619,000 after acquiring an additional 2,323 shares during the period. GAMMA Investing LLC boosted its holdings in shares of International Business Machines by 19.3% during the first quarter. GAMMA Investing LLC now owns 17,694 shares of the technology company's stock worth $4,400,000 after acquiring an additional 2,862 shares during the period. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of International Business Machines by 27.6% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 1,158,366 shares of the technology company's stock worth $288,039,000 after acquiring an additional 250,283 shares during the period. Grove Bank & Trust boosted its holdings in shares of International Business Machines by 14.1% during the first quarter. Grove Bank & Trust now owns 8,479 shares of the technology company's stock worth $2,108,000 after acquiring an additional 1,050 shares during the period. Finally, Stephens Consulting LLC boosted its holdings in shares of International Business Machines by 1.4% during the first quarter. Stephens Consulting LLC now owns 3,879 shares of the technology company's stock worth $965,000 after acquiring an additional 54 shares during the period. Institutional investors own 58.96% of the company's stock.

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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