International Business Machines (NYSE:IBM) Stock Price Up 2.7% - Here's Why

Key Points

• Shares rose 2.7% intraday to $248.38 (as high as $251.35) on Monday, with about 4.8 million shares trading versus a ~6.1 million average, after a prior close of $241.77.
• Quarterly results beat expectations: IBM reported EPS of $4.52 versus $4.33 expected and revenue of $19.69 billion (up 12.2% year‑over‑year), and analysts project roughly $10.78 in full‑year EPS.
• Analyst sentiment is mixed but generally positive — the consensus is a "Moderate Buy" with an average price target of $314.60, while individual targets range from $247 to $380.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) were up 2.7% during mid-day trading on Monday . The company traded as high as $251.35 and last traded at $248.3750. Approximately 4,797,709 shares traded hands during trading, a decline of 21% from the average daily volume of 6,074,848 shares. The stock had previously closed at $241.77.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on IBM shares. Oppenheimer set a $380.00 price target on International Business Machines and gave the company an "outperform" rating in a research report on Thursday, January 29th. Morgan Stanley decreased their price target on International Business Machines from $304.00 to $247.00 and set an "equal weight" rating on the stock in a research report on Wednesday, February 25th. Wedbush restated an "outperform" rating and issued a $340.00 price objective on shares of International Business Machines in a research report on Tuesday, February 24th. Bank of America increased their target price on shares of International Business Machines from $315.00 to $335.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. Finally, Wall Street Zen cut shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Sunday, January 11th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $314.60.

International Business Machines Trading Up 2.7%

The stock's 50 day simple moving average is $271.85 and its 200 day simple moving average is $285.09. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. The firm has a market cap of $232.98 billion, a PE ratio of 22.28, a PEG ratio of 2.42 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, beating analysts' consensus estimates of $4.33 by $0.19. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The company had revenue of $19.69 billion for the quarter, compared to analysts' expectations of $19.23 billion. During the same period last year, the firm posted $3.92 EPS. International Business Machines's revenue for the quarter was up 12.2% compared to the same quarter last year. On average, sell-side analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th were given a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Tuesday, February 10th. International Business Machines's dividend payout ratio (DPR) is presently 60.27%.

Insider Activity

In related news, Director David N. Farr acquired 1,000 shares of International Business Machines stock in a transaction dated Friday, January 30th. The shares were purchased at an average cost of $304.00 per share, with a total value of $304,000.00. Following the completion of the purchase, the director owned 9,258 shares of the company's stock, valued at $2,814,432. This represents a 12.11% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael Miebach bought 434 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The shares were bought at an average price of $233.33 per share, with a total value of $101,265.22. Following the completion of the acquisition, the director directly owned 434 shares in the company, valued at $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have acquired 1,484 shares of company stock valued at $417,157. Company insiders own 0.27% of the company's stock.

Institutional Investors Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. Family CFO Inc purchased a new position in shares of International Business Machines in the 4th quarter valued at approximately $25,000. Basepoint Wealth LLC purchased a new stake in International Business Machines in the fourth quarter worth $25,000. Mountain Hill Investment Partners Corp. bought a new position in International Business Machines in the third quarter worth $28,000. Joseph Group Capital Management purchased a new position in International Business Machines during the fourth quarter valued at $28,000. Finally, Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines during the 4th quarter valued at $28,000. 58.96% of the stock is currently owned by institutional investors.

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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