International Business Machines (NYSE:IBM) Trading 2% Higher - Here's Why

Key Points

• Shares rose about 2% to roughly $312.79 on Thursday with volume up ~16% versus average; analysts' consensus rating is "Moderate Buy" with a consensus price target of $288 and mixed individual targets from about $280–$315.
• IBM beat Q3 expectations, reporting EPS of $2.65 versus $2.45 expected and revenue of $16.33 billion (up 9.1% year‑over‑year).
• The company declared a quarterly dividend of $1.68 ($6.72 annualized, ~2.1% yield) and institutional investors hold roughly 59% of the stock, including large stakes from Vanguard and Norges Bank.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) traded up 2% on Thursday . The stock traded as high as $315.44 and last traded at $312.7850. 5,692,717 shares changed hands during trading, an increase of 16% from the average session volume of 4,913,196 shares. The stock had previously closed at $306.77.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Stifel Nicolaus dropped their price objective on International Business Machines from $310.00 to $295.00 and set a "buy" rating for the company in a research report on Thursday, October 23rd. Wall Street Zen upgraded International Business Machines from a "hold" rating to a "buy" rating in a research report on Sunday, October 26th. Bank of America increased their target price on International Business Machines from $310.00 to $315.00 and gave the company a "buy" rating in a research report on Thursday, October 23rd. BMO Capital Markets increased their target price on International Business Machines from $300.00 to $305.00 and gave the company a "market perform" rating in a research report on Thursday, October 23rd. Finally, Sanford C. Bernstein initiated coverage on International Business Machines in a research report on Monday, September 15th. They issued a "market perform" rating and a $280.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have given a Hold rating and one has given a Sell 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 $288.00.

International Business Machines Stock Up 2.0%

The company has a debt-to-equity ratio of 1.97, a current ratio of 0.93 and a quick ratio of 0.89. The company has a market capitalization of $292.37 billion, a P/E ratio of 37.41, a P/E/G ratio of 4.33 and a beta of 0.71. The stock has a 50-day moving average price of $276.85 and a 200-day moving average price of $268.03.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.45 by $0.20. International Business Machines had a return on equity of 37.76% and a net margin of 12.09%.The company had revenue of $16.33 billion during the quarter, compared to the consensus estimate of $16.10 billion. During the same period last year, the company earned $2.30 earnings per share. The firm's revenue was up 9.1% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. On average, research analysts predict that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 10th. Investors of record on Monday, November 10th will be paid a dividend of $1.68 per share. The ex-dividend date of this dividend is Monday, November 10th. This represents a $6.72 annualized dividend and a yield of 2.1%. International Business Machines's dividend payout ratio (DPR) is currently 80.38%.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in International Business Machines in the second quarter valued at approximately $2,011,122,000. GQG Partners LLC acquired a new stake in International Business Machines in the first quarter valued at approximately $1,040,057,000. Nuveen LLC acquired a new stake in International Business Machines in the first quarter valued at approximately $960,386,000. Vanguard Group Inc. grew its stake in International Business Machines by 2.1% in the second quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company's stock valued at $28,019,274,000 after acquiring an additional 1,913,708 shares during the period. Finally, Laurel Wealth Advisors LLC boosted its position in shares of International Business Machines by 27,928.2% during the second quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company's stock valued at $561,001,000 after buying an additional 1,896,326 shares during the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Company Profile

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.

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