International Business Machines (NYSE:IBM) Trading Up 2.3% - Here's Why

Key Points

• IBM's stock price rose by 2.3% during trading, reaching a last price of $265.09 with over 4.9 million shares exchanged, indicating increased investor interest.
• Recent analyst reports show a variety of price targets, including an upgrade from Royal Bank of Canada to $315.00, and a consensus average target price of $275.00.
• The company announced a quarterly dividend of $1.68 per share, resulting in an annualized yield of 2.5%, despite a high payout ratio of 109.09%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) traded up 2.3% on Thursday . The company traded as high as $265.23 and last traded at $265.09. 4,950,716 shares changed hands during trading, an increase of 6% from the average session volume of 4,657,439 shares. The stock had previously closed at $259.08.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. BMO Capital Markets lifted their target price on International Business Machines from $260.00 to $300.00 and gave the company a "market perform" rating in a research report on Friday, July 18th. Sanford C. Bernstein started coverage on International Business Machines in a report on Monday. They issued a "market perform" rating and a $280.00 price target on the stock. UBS Group lifted their price target on International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a report on Thursday, July 24th. Wedbush lifted their price target on International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a report on Friday, June 20th. Finally, The Goldman Sachs Group lifted their price target on International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a report on Wednesday, July 2nd. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $275.00.

International Business Machines Trading Up 0.8%

The company has a 50 day moving average of $255.14 and a two-hundred day moving average of $257.11. The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91. The stock has a market capitalization of $248.33 billion, a PE ratio of 43.38, a P/E/G ratio of 3.99 and a beta of 0.71.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, topping 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 firm had revenue of $16.98 billion for the quarter, compared to the consensus estimate of $16.58 billion. During the same period in the previous year, the business earned $2.43 EPS. The firm's revenue for the quarter was up 7.7% on a year-over-year basis. International Business Machines has set its FY 2025 guidance at EPS. Sell-side analysts predict that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $6.72 dividend on an annualized basis and a yield of 2.5%. International Business Machines's payout ratio is currently 109.09%.

Institutional Trading of International Business Machines

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Migdal Insurance & Financial Holdings Ltd. lifted its position in International Business Machines by 9.4% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,356 shares of the technology company's stock worth $695,000 after acquiring an additional 203 shares during the period. Valeo Financial Advisors LLC lifted its holdings in shares of International Business Machines by 16.7% in the 2nd quarter. Valeo Financial Advisors LLC now owns 17,317 shares of the technology company's stock valued at $5,105,000 after buying an additional 2,480 shares during the period. Milestones Private Investment Advisors LLC acquired a new position in shares of International Business Machines in the 2nd quarter valued at about $607,000. Alternative Investment Advisors LLC. lifted its holdings in shares of International Business Machines by 0.7% in the 2nd quarter. Alternative Investment Advisors LLC. now owns 10,854 shares of the technology company's stock valued at $3,199,000 after buying an additional 71 shares during the period. Finally, Reynders McVeigh Capital Management LLC lifted its holdings in shares of International Business Machines by 3.3% in the 2nd quarter. Reynders McVeigh Capital Management LLC now owns 125,244 shares of the technology company's stock valued at $36,919,000 after buying an additional 4,047 shares during the period. Institutional investors and hedge funds own 58.96% of the company's stock.

About International Business Machines

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.