International Business Machines (NYSE:IBM) Shares Up 4.9% After Analyst Upgrade

Key Points

• IBM shares rose 4.9% after Morgan Stanley upgraded the stock from equal weight to overweight, sparking heavy trading volume well above normal.
• Several other analysts remain constructive on IBM, with the stock carrying a Moderate Buy consensus and an average price target of $306.94.
• Investor sentiment is also being lifted by IBM’s AI and quantum computing initiatives, including a new OpenAI partnership and positive commentary around its long-term growth prospects.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) were up 4.9% during trading on Tuesday after Morgan Stanley upgraded the stock from an equal weight rating to an overweight rating. The company traded as high as $267.53 and last traded at $264.66. Approximately 15,252,387 shares traded hands during mid-day trading, an increase of 110% from the average session volume of 7,250,148 shares. The stock had previously closed at $252.22.

Several other brokerages have also recently weighed in on IBM. Roth Mkm reaffirmed a "buy" rating on shares of International Business Machines in a research note on Wednesday, June 3rd. UBS Group upgraded shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 target price on the stock in a report on Wednesday, February 25th. Barclays assumed coverage on shares of International Business Machines in a research report on Monday, June 1st. They issued an "overweight" rating and a $350.00 target price on the stock. Wall Street Zen raised shares of International Business Machines from a "sell" rating to a "hold" rating in a research report on Sunday. Finally, Jefferies Financial Group dropped their price objective on shares of International Business Machines from $370.00 to $320.00 and set a "buy" rating on the stock in a research note on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, International Business Machines currently has an average rating of "Moderate Buy" and an average price target of $306.94.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: JPMorgan upgraded IBM to Overweight from Neutral and raised its price target to $291, citing growing confidence in IBM’s software acceleration and AI-driven growth prospects. Article: This IBM Analyst Turns Bullish; Here Are Top 3 Upgrades For Tuesday
• Positive Sentiment: IBM is getting renewed attention around quantum computing after President Trump praised CEO Arvind Krishna and signed executive orders aimed at speeding up U.S. quantum development, which could boost sentiment toward IBM’s long-term growth initiatives. Article: Trump admits selling IBM's stock was a mistake. Now he's cheering its quantum future.
• Positive Sentiment: IBM and OpenAI announced a partnership to bring frontier AI into enterprise cybersecurity, adding another high-profile catalyst for IBM’s AI monetization narrative. Article: IBM partners with OpenAI on enterprise security AI
• Positive Sentiment: Wall Street commentary also highlighted IBM’s progress in turning quantum computing into a scalable business, reinforcing optimism that the company’s investments may eventually become a meaningful revenue stream. Article: IBM Getting Ready to Scale Quantum Computing
• Neutral Sentiment: Articles about IBM’s Wimbledon AI features and broader quantum-computing sector momentum add to the growth narrative, but they are less immediate stock catalysts than the analyst upgrade and policy headlines. Article: Wimbledon and IBM Introduce New AI-Powered Fan Experiences and Modernized Digital Platforms for The Championships 2026

Institutional Investors Weigh In On International Business Machines

Large investors have recently bought and sold shares of the business. Brighton Jones LLC grew its position in International Business Machines by 12.4% in the 4th 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 period. Sivia Capital Partners LLC boosted its position in 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 purchasing an additional 186 shares during the last quarter. Jump Financial LLC purchased a new position in International Business Machines in the second quarter worth about $211,000. Ieq Capital LLC grew its stake in shares of 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 during the period. Finally, Vivaldi Capital Management LP grew its stake in shares of 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 during the period. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Stock Up 4.9%

The company's 50-day moving average price is $251.77 and its 200 day moving average price is $268.17. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The stock has a market cap of $248.75 billion, a PE ratio of 23.40, a price-to-earnings-growth ratio of 2.58 and a beta of 0.66.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during 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. The firm's quarterly revenue was up 9.5% compared to the same quarter last year. As a group, analysts forecast that International Business Machines Corporation will post 12.38 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, May 8th. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is presently 59.77%.

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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