International Business Machines (NYSE:IBM) Shares Up 5.1% - Time to Buy?

Key Points

• IBM shares jumped 5.1% on Friday, with trading volume running well above average, as investors reacted to upbeat news around the company’s latest technology developments.
• IBM unveiled a sub-1 nanometer chip breakthrough aimed at improving AI computing performance and efficiency. Analysts called it an important step for scaling semiconductors, though commercialization is still expected to be years away.
• Wall Street remains broadly constructive on IBM, with the stock carrying a Moderate Buy consensus and an average price target of $306.94. The company also recently beat quarterly earnings estimates and raised its dividend slightly, supporting the bullish case.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares rose 5.1% on Friday . The stock traded as high as $273.14 and last traded at $271.3570. Approximately 9,577,396 shares were traded during mid-day trading, an increase of 31% from the average daily volume of 7,305,542 shares. The stock had previously closed at $258.27.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM’s sub-1 nm chip breakthrough could improve AI chip performance and efficiency, supporting a stronger long-term hardware growth story. Reuters article
• Positive Sentiment: Wedbush said the new chip architecture is a significant step in scaling semiconductors for growing AI workloads, which could boost investor confidence in IBM’s innovation pipeline. Proactive Investors article
• Neutral Sentiment: The market is also weighing IBM’s quantum and advanced computing strategy, but commercialization of the new chip technology is still years away, limiting near-term financial impact. Yahoo Finance article
• Negative Sentiment: Some commentary remains cautious on IBM’s broader stock setup, with one recent note highlighting prior share underperformance versus the S&P 500 despite the new technology headline. Yahoo Finance article

Wall Street Analysts Forecast Growth

IBM has been the topic of a number of analyst reports. Barclays initiated coverage on shares of International Business Machines in a report on Monday, June 1st. They set an "overweight" rating and a $350.00 target price on the stock. DZ Bank upgraded shares of International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective for the company in a research report on Friday, April 24th. Needham & Company LLC started coverage on shares of International Business Machines in a report on Wednesday, June 3rd. They set a "buy" rating on the stock. Roth Mkm reissued a "buy" rating on shares of International Business Machines in a report on Wednesday, June 3rd. Finally, Weiss Ratings lowered shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, International Business Machines currently has a consensus rating of "Moderate Buy" and an average target price of $306.94.

International Business Machines Stock Up 5.1%

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 fifty day moving average price of $253.31 and a 200 day moving average price of $267.23. The company has a market cap of $255.04 billion, a PE ratio of 23.99, a price-to-earnings-growth ratio of 2.72 and a beta of 0.67.

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 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 business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same period last year, the firm posted $1.60 earnings per share. International Business Machines's quarterly revenue was up 9.5% on a year-over-year basis. As a group, analysts anticipate that International Business Machines Corporation will post 12.39 EPS for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were paid a $1.69 dividend. This is a boost from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines's payout ratio is currently 59.77%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of IBM. CVA Family Office LLC boosted its position in International Business Machines by 1.4% during the fourth quarter. CVA Family Office LLC now owns 2,389 shares of the technology company's stock valued at $708,000 after buying an additional 33 shares during the period. Foster Group Inc. lifted its stake in shares of International Business Machines by 1.3% in the 4th quarter. Foster Group Inc. now owns 2,507 shares of the technology company's stock valued at $742,000 after acquiring an additional 33 shares during the last quarter. New Covenant Trust Company N.A. boosted its holdings in International Business Machines by 3.8% during the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company's stock valued at $264,000 after acquiring an additional 33 shares during the period. McGowan Group Asset Management Inc. grew its position in International Business Machines by 1.2% during the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company's stock worth $798,000 after acquiring an additional 33 shares during the last quarter. Finally, Altman Advisors Inc. increased its stake in International Business Machines by 0.3% in the 3rd quarter. Altman Advisors Inc. now owns 9,929 shares of the technology company's stock worth $2,802,000 after purchasing an additional 34 shares during the period. 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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