Wall Street Zen Upgrades International Business Machines (NYSE:IBM) to Buy

Key Points

• International Business Machines (IBM) was upgraded from a "hold" to a "buy" rating by Wall Street Zen, indicating positive market sentiment about the company's future performance.
• Several brokerages have adjusted their price targets for IBM, with Royal Bank of Canada raising it from $285 to $315, while others like Bank of America and Morgan Stanley slightly lowered theirs, reflecting varied market expectations.
• The company reported strong earnings, exceeding analysts' expectations with $2.80 earnings per share and revenue of $16.98 billion, a 7.7% increase year-over-year.

International Business Machines (NYSE:IBM - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

A number of other brokerages have also recently commented on IBM. The Goldman Sachs Group upped their price target on International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a research note on Wednesday, July 2nd. Royal Bank Of Canada raised their price target on International Business Machines from $285.00 to $315.00 and gave the company an "outperform" rating in a report on Thursday, July 17th. KGI Securities set a $242.00 target price on International Business Machines and gave the stock a "hold" rating in a report on Thursday, April 24th. Bank of America dropped their target price on International Business Machines from $320.00 to $310.00 and set a "buy" rating for the company in a report on Thursday, July 24th. Finally, Morgan Stanley dropped their price target on International Business Machines from $237.00 to $233.00 and set an "equal weight" rating for the company in a research note on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have given a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat.com, International Business Machines presently has an average rating of "Moderate Buy" and a consensus price target of $268.75.

International Business Machines Stock Performance

IBM traded down $0.88 during trading on Friday, reaching $262.33. 4,619,650 shares of the company's stock were exchanged, compared to its average volume of 4,698,527. The business has a 50 day moving average price of $277.50 and a 200 day moving average price of $256.61. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00. The company has a market capitalization of $243.81 billion, a P/E ratio of 42.59, a PEG ratio of 4.06 and a beta of 0.69. International Business Machines has a fifty-two week low of $181.81 and a fifty-two week high of $296.16.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The technology company reported $2.80 EPS for the quarter, beating the consensus estimate of $2.65 by $0.15. The company had revenue of $16.98 billion for the quarter, compared to the consensus estimate of $16.58 billion. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.43 EPS. As a group, analysts predict that International Business Machines will post 10.78 earnings per share for the current fiscal year.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently bought and sold shares of IBM. Financial Symmetry Inc increased its stake in shares of International Business Machines by 2.9% during the second quarter. Financial Symmetry Inc now owns 1,908 shares of the technology company's stock valued at $562,000 after buying an additional 54 shares during the period. Lyell Wealth Management LP boosted its position in shares of International Business Machines by 27.7% during the second quarter. Lyell Wealth Management LP now owns 2,434 shares of the technology company's stock valued at $717,000 after purchasing an additional 528 shares in the last quarter. Stephens Inc. AR boosted its position in shares of International Business Machines by 1.5% during the second quarter. Stephens Inc. AR now owns 70,750 shares of the technology company's stock valued at $20,856,000 after purchasing an additional 1,052 shares in the last quarter. Madison Wealth Partners Inc bought a new stake in shares of International Business Machines during the second quarter valued at approximately $235,000. Finally, Balboa Wealth Partners boosted its position in shares of International Business Machines by 83.6% during the second quarter. Balboa Wealth Partners now owns 3,601 shares of the technology company's stock valued at $1,061,000 after purchasing an additional 1,640 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

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.