International Business Machines (NYSE:IBM) Trading 1.2% Higher - Time to Buy?

Key Points

• International Business Machines Corporation (NYSE:IBM) shares rose 1.2% to $284.72, with trading volume increasing significantly to over 9 million shares.
• The company recently reported quarterly earnings of $2.80 per share, exceeding analyst estimates and reflecting a 7.7% increase in revenue year-over-year.
• Multiple analysts have issued ratings on IBM, with Melius Research upgrading it to a "strong-buy" and several other firms adjusting their price targets, indicating a mixed outlook among investors.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price traded up 1.2% during trading on Friday . The company traded as high as $288.85 and last traded at $284.72. 9,050,340 shares were traded during trading, an increase of 91% from the average session volume of 4,744,781 shares. The stock had previously closed at $281.44.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on IBM shares. Melius Research upgraded International Business Machines to a "strong-buy" rating in a research report on Monday, July 7th. Bank of America dropped their price target on International Business Machines from $320.00 to $310.00 and set a "buy" rating for the company in a research report on Thursday, July 24th. BMO Capital Markets upped their price target 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. Wedbush upped their price target on International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a research report on Friday, June 20th. Finally, 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 report on Wednesday, July 2nd. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $275.00.

International Business Machines Price Performance

The stock has a fifty day simple moving average of $254.09 and a two-hundred day simple moving average of $257.72. The company has a market cap of $264.62 billion, a PE ratio of 46.22, a price-to-earnings-growth ratio of 4.12 and a beta of 0.71. The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 2.00.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, beating analysts' consensus estimates 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 company had revenue of $16.98 billion for the quarter, compared to analyst estimates of $16.58 billion. During the same quarter in the previous year, the company earned $2.43 EPS. The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. On average, equities analysts predict that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Friday, August 8th were given a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Friday, August 8th. International Business Machines's dividend payout ratio (DPR) is presently 109.09%.

Institutional Investors Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Family CFO Inc acquired a new position in shares of International Business Machines during the 2nd quarter worth approximately $25,000. Christopher J. Hasenberg Inc purchased a new stake in shares of International Business Machines during the 1st quarter valued at $27,000. Winnow Wealth LLC purchased a new stake in shares of International Business Machines during the 2nd quarter valued at $27,000. SSA Swiss Advisors AG purchased a new stake in shares of International Business Machines during the 1st quarter valued at $28,000. Finally, Dagco Inc. purchased a new stake in shares of International Business Machines during the 1st quarter valued at $31,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.