International Business Machines (NYSE:IBM) Shares Up 1.8% - Should You Buy?

Key Points

• IBM shares rose 1.8% in Wednesday trading, briefly touching $294.49 before closing at $286.16, as volume came in below the average session level.
• Investor interest is being driven by IBM’s sub-1 nanometer chip breakthrough, along with continued attention on its quantum computing and enterprise AI initiatives.
• Wall Street remains broadly constructive: IBM recently beat quarterly earnings and revenue estimates, and analysts now have a consensus Moderate Buy rating with a target price of $306.94.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price was up 1.8% during mid-day trading on Wednesday . The company traded as high as $294.49 and last traded at $286.1630. Approximately 6,822,964 shares changed hands during trading, a decline of 7% from the average session volume of 7,299,441 shares. The stock had previously closed at $281.21.

Key International Business Machines News

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

• Positive Sentiment: IBM is drawing attention after unveiling the world’s first sub-1 nanometer chip technology, a breakthrough that could reinforce its position in advanced semiconductor research and future AI infrastructure. International Business Machines (IBM) Is Up 10.2% After Unveiling 0.7 nm Nanostack Chip Breakthrough
• Positive Sentiment: Recent coverage says IBM has the ingredients to beat estimates again in its next earnings report, which supports expectations for another solid quarterly result. Will IBM (IBM) Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: IBM is also benefiting from broader enthusiasm around enterprise AI adoption and AI-related cybersecurity work, including collaboration on open-source software supply chain vulnerabilities. NOW Benefits From Enterprise AI Adoption: Buy, Sell, or Hold the Stock?
• Positive Sentiment: IBM’s quantum-computing efforts are also in focus after a former chief scientist warned “Q-Day” may be just 3 to 4 years away, underscoring IBM’s role in a fast-growing strategic technology area. Former IBM Chief Scientist Warns Q-Day Is 3 To 4 Years Away—Banks Are Running Out Of Time
• Neutral Sentiment: IBM picked Stagwell as a creative partner/lead creative agency, a brand-marketing move that is unlikely to materially affect near-term fundamentals but supports ongoing corporate campaign activity. IBM Picks Stagwell as Creative Partner
• Neutral Sentiment: Separate commentary highlighted that IBM is among companies rehiring workers after AI-driven layoffs fell short, which is more of a business-model commentary than a direct earnings catalyst. Companies rehire workers laid off for AI as automation falls short

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on IBM shares. Susquehanna began coverage on shares of International Business Machines in a report on Tuesday, June 23rd. They issued a "neutral" rating for the company. Weiss Ratings cut International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, June 24th. Stifel Nicolaus set a $290.00 price target on shares of International Business Machines in a research note on Friday, May 22nd. Barclays started coverage on shares of International Business Machines in a report on Monday, June 1st. They set an "overweight" rating and a $350.00 price objective on the stock. Finally, Morgan Stanley raised shares of International Business Machines from an "equal weight" rating to an "overweight" rating in a research note on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $306.94.

International Business Machines Stock Performance

The company has a market cap of $268.96 billion, a PE ratio of 25.30, a PEG ratio of 2.88 and a beta of 0.67. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The company has a 50-day moving average of $254.94 and a 200-day moving average of $266.51.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly 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 during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines's quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.60 EPS. As a group, analysts anticipate that International Business Machines Corporation will post 12.4 earnings per share for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a dividend of $1.69 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.4%. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is 59.77%.

Institutional Trading of International Business Machines

A number of hedge funds have recently bought and sold shares of IBM. Family CFO Inc purchased a new stake in International Business Machines in the fourth quarter worth $25,000. Basepoint Wealth LLC bought a new position in International Business Machines in the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC bought a new stake in International Business Machines during the 1st quarter valued at $26,000. Joseph Group Capital Management bought a new position in shares of International Business Machines in the fourth quarter worth $28,000. Finally, Cornerstone Financial Management LLC bought a new position in shares of International Business Machines in the fourth quarter worth $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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