International Business Machines (NYSE:IBM) Shares Up 1.9% - Here's Why

Key Points

• IBM shares rose 1.9% after a burst of positive company and sector news, including a new five-year global modernization deal with Abertis and continued optimism around its quantum-computing role.
• Analysts remain broadly constructive on IBM, with recent price-target moves ranging from $225 to $320 and an overall Moderate Buy rating; the average target price is about $294.41.
• IBM’s fundamentals also got attention after its latest earnings beat expectations, with EPS of $1.91 on revenue of $15.92 billion, and the company recently raised its quarterly dividend to $1.69 per share.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) shot up 1.9% on Wednesday . The stock traded as high as $257.62 and last traded at $255.4340. 8,502,600 shares traded hands during trading, an increase of 34% from the average session volume of 6,360,019 shares. The stock had previously closed at $250.69.

Key International Business Machines News

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

• Positive Sentiment: IBM announced a five-year global modernization agreement with Abertis to upgrade technology across multiple subsidiaries, a deal that could bolster consulting demand and recurring services revenue. IBM and Abertis are Driving the Future of Mobility with a Global Technology Modernization Agreement
• Positive Sentiment: Wedbush reiterated an Outperform rating on IBM and highlighted the company’s role in the U.S. quantum chip foundry effort after federal support for quantum computing companies, reinforcing IBM’s position as a beneficiary of the sector’s growth. Wedbush Highlights IBM’s Role in Quantum Chip Foundry Partnership
• Positive Sentiment: Analyst commentary raised IBM’s price target to $280, citing strong Q1 revenue growth, higher EPS, and record free cash flow margins, while management kept its 2026 outlook intact. IBM: Why AI Is An Opportunity Not A Threat, Raising My Price Target
• Positive Sentiment: IBM has also been included in coverage around the U.S. government’s $2 billion quantum funding push, which has boosted sentiment across the quantum-computing group and could increase investor confidence in IBM’s long-term quantum ambitions. Trump’s $2 Billion Quantum Bet Lifts IBM, D‑Wave, and Rigetti
• Neutral Sentiment: Additional market coverage noted IBM’s move alongside other quantum stocks and ETF flows, but this appears more like sector momentum than a company-specific catalyst. QTUM ETF Crosses $5 Billion Even As IBM, Rigetti, IonQ, D-Wave Cool Off

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on IBM. Stifel Nicolaus set a $290.00 target price on International Business Machines in a research note on Friday, May 22nd. JPMorgan Chase & Co. dropped their target price on International Business Machines from $317.00 to $283.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 18th. Royal Bank Of Canada dropped their target price on International Business Machines from $330.00 to $300.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 6th. Oppenheimer dropped their target price on International Business Machines from $380.00 to $320.00 and set an "outperform" rating on the stock in a research note on Thursday, April 16th. Finally, Morgan Stanley boosted their target price on International Business Machines from $215.00 to $225.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, International Business Machines currently has an average rating of "Moderate Buy" and an average target price of $294.41.

International Business Machines Trading Up 1.9%

The stock has a 50-day simple moving average of $238.94 and a 200 day simple moving average of $271.49. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The company has a market cap of $240.08 billion, a price-to-earnings ratio of 22.58, a PEG ratio of 2.63 and a beta of 0.58.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion during the quarter, compared to analysts' expectations of $15.60 billion. During the same quarter in the previous year, the firm posted $1.60 EPS. The firm's revenue was up 9.5% compared to the same quarter last year. As a group, equities research analysts predict that International Business Machines Corporation 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. Shareholders of record on Friday, May 8th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 2.6%. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is presently 59.77%.

Hedge Funds Weigh In On International Business Machines

Several institutional investors and hedge funds have recently modified their holdings of IBM. Brighton Jones LLC lifted its holdings in shares of International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after buying an additional 2,323 shares during the period. Sivia Capital Partners LLC raised its holdings in International Business Machines by 10.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after purchasing an additional 186 shares during the period. Jump Financial LLC acquired a new position in International Business Machines in the 2nd quarter worth about $211,000. Ieq Capital LLC raised its holdings in International Business Machines by 2.2% in the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock worth $11,383,000 after purchasing an additional 843 shares during the period. Finally, Vivaldi Capital Management LP raised its holdings in International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock worth $300,000 after purchasing an additional 106 shares during the period. Institutional investors and hedge funds own 58.96% of the company's stock.

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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