International Business Machines (NYSE:IBM) Stock Price Up 3.5% Following Analyst Upgrade

Key Points

• IBM shares rose 3.5% after Bank of America Securities lifted its price target to $330 from $315 and reiterated a buy rating, citing stronger Q2 potential and possible upside to 2026 guidance.
• Sentiment around IBM’s quantum computing ambitions improved as BofA called the company a leader in the category, while IBM also highlighted real-world quantum progress with partners Oak Ridge National Laboratory and Cleveland Clinic.
• IBM’s latest fundamentals were solid: it recently beat quarterly earnings and revenue estimates, and the company also raised its dividend to $1.69 per share, implying a 2.3% yield.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price traded up 3.5% on Monday after Bank of America raised their price target on the stock from $315.00 to $330.00. Bank of America currently has a buy rating on the stock. International Business Machines traded as high as $300.82 and last traded at $299.58. Approximately 7,041,938 shares were traded during trading, a decline of 3% from the average session volume of 7,286,552 shares. The stock had previously closed at $289.52.

Several other equities research analysts have also commented on the stock. Citigroup upped their price target on shares of International Business Machines from $285.00 to $375.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Stifel Nicolaus set a $290.00 target price on International Business Machines in a report on Friday, May 22nd. Susquehanna started coverage on International Business Machines in a research report on Tuesday, June 23rd. They set a "neutral" rating for the company. Wolfe Research downgraded International Business Machines to a "peer perform" rating in a report on Tuesday, June 23rd. Finally, Oppenheimer lowered their price objective on International Business Machines from $380.00 to $320.00 and set an "outperform" rating on the stock in a research report on Thursday, April 16th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, International Business Machines has a consensus rating of "Moderate Buy" and a consensus price target of $306.47.

International Business Machines News Roundup

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

• Positive Sentiment: Bank of America Securities raised its price target on IBM to $330 from $315 and reiterated a buy rating, citing stronger Q2 potential, improving software mix, and possible 2026 guidance upside. Article Title
• Positive Sentiment: BofA also called IBM the “leader in the quantum category,” which boosted sentiment around the company’s long-term growth opportunity in quantum computing. Article Title
• Positive Sentiment: IBM and partners Oak Ridge National Laboratory and Cleveland Clinic reported first-known quantum-computer calculations tied to fusion materials, highlighting real-world quantum progress and reinforcing IBM’s innovation narrative. Article Title
• Positive Sentiment: IBM announced a cybersecurity partnership with Deloitte and Red Hat to help businesses defend against automated cyberattacks, supporting its enterprise software and security positioning. Article Title
• Neutral Sentiment: Investors are also watching IBM as a trending stock and waiting for its July 22 earnings release, which could confirm whether AI-driven demand is translating into stronger revenue and margins. Article Title
• Neutral Sentiment: Broader market strength in tech has also provided a supportive backdrop for IBM shares. Article Title

Institutional Trading of International Business Machines

Several institutional investors have recently modified their holdings of the stock. Private Client Services LLC purchased a new stake in International Business Machines in the 2nd quarter valued at $202,000. Dogwood Wealth Management LLC raised its holdings in shares of International Business Machines by 87.0% during the 2nd quarter. Dogwood Wealth Management LLC now owns 202 shares of the technology company's stock worth $57,000 after acquiring an additional 94 shares during the period. Trilogy Capital Inc. boosted its position in shares of International Business Machines by 24.7% during the 2nd quarter. Trilogy Capital Inc. now owns 1,560 shares of the technology company's stock valued at $439,000 after acquiring an additional 309 shares during the last quarter. SWP Investment Management LLC grew its holdings in shares of International Business Machines by 3.9% in the second quarter. SWP Investment Management LLC now owns 17,129 shares of the technology company's stock valued at $4,817,000 after purchasing an additional 640 shares during the period. Finally, PVG Asset Management Corp acquired a new position in International Business Machines in the 2nd quarter valued at about $266,000. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Trading Up 3.5%

The stock has a market cap of $281.57 billion, a PE ratio of 26.49, a price-to-earnings-growth ratio of 3.00 and a beta of 0.68. The company's 50-day moving average price is $256.99 and its 200 day moving average price is $266.06. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The company had revenue of $15.92 billion for the quarter, compared to analysts' expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm's revenue was up 9.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.60 earnings per share. On average, sell-side analysts forecast that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.3%. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines's dividend 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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