International Business Machines (NYSE:IBM) Shares Up 2.1% - What's Next?

Key Points

• International Business Machines (IBM) shares rose by 2.1%, reaching a last traded price of $271.87, with trading volume exceeding the average by 6%.
• Several analysts have provided new price targets; BMO Capital Markets increased their target to $300, while Wedbush raised theirs to $325, with a consensus rating of "Hold" and a price target of $275.
• The company recently announced a quarterly dividend of $1.68 per share, reflecting an annual yield of 2.5%, although its payout ratio stands at 109.09%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shot up 2.1% during trading on Monday . The stock traded as high as $272.31 and last traded at $271.87. 4,962,017 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 4,688,162 shares. The stock had previously closed at $266.40.

Analysts Set New Price Targets

Several brokerages have commented on IBM. UBS Group lifted their price target 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. Erste Group Bank downgraded International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. Sanford C. Bernstein began coverage on International Business Machines in a research report on Monday, September 15th. They issued a "market perform" rating and a $280.00 price target on the stock. BMO Capital Markets lifted their price target on International Business Machines from $260.00 to $300.00 and gave the stock a "market perform" rating in a research report on Friday, July 18th. Finally, Wedbush lifted their price target on International Business Machines from $300.00 to $325.00 and gave the stock an "outperform" rating in a research report on Friday, June 20th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, International Business Machines has a consensus rating of "Hold" and a consensus price target of $275.00.

International Business Machines Stock Up 2.1%

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 firm has a market cap of $252.67 billion, a price-to-earnings ratio of 44.13, a price-to-earnings-growth ratio of 4.10 and a beta of 0.71. The firm has a 50 day moving average price of $254.82 and a 200-day moving average price of $257.31.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, beating 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 business had revenue of $16.98 billion for the quarter, compared to analyst estimates of $16.58 billion. During the same quarter in the prior year, the firm posted $2.43 earnings per share. The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. As a group, equities 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 announced a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were issued a $1.68 dividend. The ex-dividend date was Friday, August 8th. This represents a $6.72 annualized dividend and a yield of 2.5%. International Business Machines's dividend payout ratio (DPR) is 109.09%.

Institutional Investors Weigh In On International Business Machines

Several hedge funds have recently bought and sold shares of the company. Norges Bank bought a new position in shares of International Business Machines during the second quarter worth about $2,011,122,000. GAMMA Investing LLC boosted its position in International Business Machines by 29,564.2% during the first quarter. GAMMA Investing LLC now owns 4,399,790 shares of the technology company's stock valued at $10,940,520,000 after purchasing an additional 4,384,958 shares during the last quarter. GQG Partners LLC acquired a new position in International Business Machines during the first quarter valued at approximately $1,040,057,000. Nuveen LLC acquired a new position in International Business Machines during the first quarter valued at approximately $960,386,000. Finally, Vanguard Group Inc. boosted its position in International Business Machines by 2.1% during the second quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company's stock valued at $28,019,274,000 after purchasing an additional 1,913,708 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company Profile

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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