International Business Machines (NYSE:IBM) Stock Price Up 2% - Time to Buy?

Key Points

• IBM shares rose 2% to about $237, while trading volume was 35% below the average. The stock remains below its 50-day and 200-day moving averages near $249 and $252, respectively.
• Analyst sentiment is moderately bullish: 16 analysts rate IBM a Buy, 11 a Hold and one a Sell, producing a “Moderate Buy” consensus and a $265.40 average price target.
• Quantum-computing progress strengthens IBM’s long-term growth story, but meaningful revenue is still years away. Near-term considerations include weaker-than-expected revenue, a 2.8% dividend yield and added headline risk from a securities-law investigation.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price rose 2% during mid-day trading on Wednesday . The stock traded as high as $238.62 and last traded at $237.3080. Approximately 5,243,765 shares traded hands during trading, a decline of 35% from the average daily volume of 8,056,883 shares. The stock had previously closed at $232.67.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Quantum roadmap advances: The new cryogenic architecture supports IBM’s goal of developing a system with roughly 1,000 qubits by 2027 and launching IBM Quantum Starling, a planned fault-tolerant quantum computer, in 2029. The announcement strengthens IBM’s long-term technology narrative, although meaningful revenue from quantum computing remains several years away. IBM Connects Its First Modular Cryogenic Systems
• Positive Sentiment: Investor attention and analyst support: Coverage highlighted the milestone as a significant hardware hurdle cleared on the path to IBM’s quantum supercomputer. Reports also said analysts retain a “Moderate Buy” view, supporting sentiment despite some recent price-target reductions. IBM Clears Major Hardware Hurdle
• Positive Sentiment: Channel expansion: Arrow Electronics is expanding its IBM distribution coverage, which could improve IBM’s reach through channel partners and support sales growth. Arrow Electronics Expands IBM Distribution Coverage
• Neutral Sentiment: Research reported that IBM Maximo customers show higher maintenance maturity than industry peers, reinforcing the value proposition of IBM’s asset-management software but offering limited immediate financial impact. Verdantix Research on IBM Maximo
• Negative Sentiment: A securities-law firm announced an investigation into IBM following a substantial prior stock decline. The announcement does not establish wrongdoing, but it adds headline and potential litigation risk. IBM Securities Fraud Investigation

Wall Street Analysts Forecast Growth

IBM has been the subject of several recent analyst reports. Royal Bank Of Canada restated an "outperform" rating and issued a $270.00 price target on shares of International Business Machines in a report on Tuesday, July 21st. Susquehanna cut their target price on International Business Machines from $303.00 to $225.00 and set a "neutral" rating on the stock in a research report on Friday, July 24th. Robert W. Baird began coverage on International Business Machines in a research report on Tuesday, July 21st. They set a "neutral" rating and a $230.00 price target for the company. DZ Bank upgraded International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective on the stock in a report on Friday, April 24th. Finally, BMO Capital Markets dropped their target price on shares of International Business Machines from $270.00 to $230.00 and set a "market perform" rating for the company in a research report on Thursday, July 23rd. Sixteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $265.40.

International Business Machines Trading Up 2.0%

The company has a market cap of $223.57 billion, a P/E ratio of 21.06, a P/E/G ratio of 2.30 and a beta of 0.70. The business has a fifty day simple moving average of $249.44 and a 200 day simple moving average of $252.00. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts' consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.46 billion. During the same period in the prior year, the company earned $2.80 earnings per share. The firm's revenue was up 1.1% compared to the same quarter last year. Analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. International Business Machines's dividend payout ratio (DPR) is 59.98%.

Hedge Funds Weigh In On International Business Machines

Several institutional investors have recently modified their holdings of IBM. BlackRock Inc. bought a new stake in shares of International Business Machines during the second quarter valued at approximately $21,586,659,000. Bank of America Corp DE acquired a new stake in International Business Machines in the 2nd quarter valued at approximately $4,214,868,000. Bank of New York Mellon Corp acquired a new position in International Business Machines during the 2nd quarter worth $2,606,782,000. Norges Bank bought a new position in shares of International Business Machines in the fourth quarter worth $2,446,429,000. Finally, Legal & General Group Plc acquired a new position in shares of International Business Machines during the second quarter valued at $1,874,733,000. Institutional investors own 58.96% of the company's stock.

About International Business Machines

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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