International Business Machines (NYSE:IBM) Shares Up 3.5% - Still a Buy?

Key Points

• IBM shares rose 3.5% on heavy trading volume, touching an intraday high of $268.89 before last trading around $264.25. The move came as investors reacted to several positive company announcements.
• IBM unveiled Project Lightwell, a $5 billion initiative with Red Hat aimed at securing open-source software using AI tools, and it also plans to invest more than $10 billion in quantum computing over the next five years. These efforts highlight IBM’s push into cybersecurity and high-growth technologies.
• The company recently beat quarterly earnings and revenue estimates and raised its dividend to $1.69 per share, while analysts currently rate the stock a Moderate Buy with an average price target of $294.41. Institutions also remain heavily invested, with nearly 59% of shares owned by hedge funds and other large investors.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price shot up 3.5% on Thursday . The stock traded as high as $268.89 and last traded at $264.2470. 11,975,954 shares traded hands during mid-day trading, an increase of 86% from the average session volume of 6,421,617 shares. The stock had previously closed at $255.20.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM unveiled Project Lightwell, a $5 billion initiative with Red Hat to secure open-source software using AI tools and a global team of more than 20,000 engineers, which could expand IBM’s role in enterprise cybersecurity. Reuters: IBM commits $5 billion to secure open-source software
• Positive Sentiment: The company also announced it will invest more than $10 billion in quantum computing over the next five years, signaling a major long-term bet on a high-upside technology area and helping fuel investor enthusiasm. Yahoo Finance: IBM to invest $10 billion for large-scale quantum computer by 2029
• Positive Sentiment: IBM’s focus on quantum has also been supported by broader policy and industry momentum, including government funding for the sector and analyst commentary suggesting IBM is well positioned to benefit from the commercial expansion of quantum computing. Barron’s: IBM Has a $10 Billion Plan to Build the Ultimate Quantum Computer
• Neutral Sentiment: IBM also drew attention for a profile piece on a UX engineer helping advance human-centered AI research, which highlights the company’s AI talent and innovation efforts but is less likely to move the stock on its own. Benzinga: From Harvard And MIT To IBM Research...

Analyst Ratings Changes

Several equities analysts have commented on the stock. Erste Group Bank downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a research note on Wednesday, February 18th. Wedbush restated an "outperform" rating on shares of International Business Machines in a research note on Thursday, May 21st. Oppenheimer dropped their price target on shares of International Business Machines from $380.00 to $320.00 and set an "outperform" rating for the company in a research note on Thursday, April 16th. HSBC raised shares of International Business Machines from a "reduce" rating to a "hold" rating and lifted their price objective for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. Finally, Evercore lifted their price objective on shares of International Business Machines from $330.00 to $345.00 and gave the stock an "outperform" rating in a research report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $294.41.

International Business Machines Trading Up 3.5%

The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The company has a market capitalization of $248.36 billion, a price-to-earnings ratio of 23.36, a price-to-earnings-growth ratio of 2.60 and a beta of 0.58. The business's 50 day simple moving average is $239.06 and its 200 day simple moving average is $271.09.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same period in the previous year, the business posted $1.60 earnings per share. International Business Machines's quarterly revenue was up 9.5% on a year-over-year basis. Research analysts anticipate that International Business Machines Corporation will post 12.4 EPS for the current year.

International Business Machines Increases Dividend

The business also recently announced 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 is Friday, May 8th. This is an increase from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a yield of 2.6%. International Business Machines's dividend payout ratio (DPR) is currently 59.77%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its position in 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 purchasing an additional 2,323 shares during the last quarter. Sivia Capital Partners LLC increased its position in shares of International Business Machines by 10.6% in the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock worth $571,000 after acquiring an additional 186 shares in the last quarter. Jump Financial LLC acquired a new stake in shares of International Business Machines in the second quarter worth $211,000. Ieq Capital LLC grew its holdings in International Business Machines by 2.2% during the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after purchasing an additional 843 shares in the last quarter. Finally, Vivaldi Capital Management LP grew its holdings in International Business Machines by 11.6% during the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after purchasing an additional 106 shares in 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 (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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