International Business Machines (NYSE:IBM) Trading 3.1% Higher - Still a Buy?

Key Points

• IBM shares rose 3.1% in trading, with unusually heavy volume, as investors reacted positively to the company’s latest strategic moves and analyst commentary.
• IBM announced a plan to invest more than $10 billion over five years in quantum computing, including R&D, manufacturing, M&A, and ecosystem expansion, signaling a major long-term growth push.
• Analysts remain broadly constructive: Wedbush lifted its price target to $350, and the stock currently carries a consensus rating of Moderate Buy with a consensus target of $299.17.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares traded up 3.1% during mid-day trading on Tuesday . The company traded as high as $327.98 and last traded at $329.72. 32,759,785 shares changed hands during trading, an increase of 262% from the average session volume of 9,042,230 shares. The stock had previously closed at $319.6670.

More International Business Machines News

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

• Positive Sentiment: IBM announced plans to invest more than $10 billion over five years in quantum computing, including R&D, manufacturing, M&A, and ecosystem expansion. Investors appear to be betting this could strengthen IBM’s long-term growth story and leadership in fault-tolerant quantum systems. IBM Commits More Than $10 Billion to Quantum Computing, Funding Its Roadmap from Today's Leading Systems to the World's First Fault-Tolerant Quantum Computers
• Positive Sentiment: Wedbush raised its price target on IBM to $350 from $320 and kept an outperform rating, saying fears that AI tools would disrupt IBM’s enterprise business have not played out and that execution is improving. Wedbush lifts IBM price target as AI transformation fears give way to execution confidence
• Positive Sentiment: Additional analyst commentary suggests IBM still has room to run after its recent rally, reinforcing momentum in the stock as investors rotate into software and AI-related names. How High Can IBM’s Stock Price Rise?
• Neutral Sentiment: Market chatter also points to IBM as a beneficiary of a broader quantum-trade revaluation, with some articles comparing it favorably against pure-play quantum companies and highlighting its expanding role in the sector. IBM (IBM) Stock Surges Nearly 30% in Historic Four-Day Rally: What’s Driving the Momentum
• Neutral Sentiment: Some valuation-focused coverage notes that after the sharp run-up, IBM could look expensive by certain metrics, which may temper upside expectations even as momentum stays strong. A Look At IBM (IBM) Valuation After Quantum And AI Investments Drive Rapid Share Price Gains

Analysts Set New Price Targets

Several research firms have recently commented on IBM. Wedbush set a $350.00 price target on International Business Machines in a research report on Tuesday. UBS Group raised International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target for the company in a research report on Wednesday, February 25th. Barclays initiated coverage on International Business Machines in a research note on Monday. They issued an "overweight" rating and a $350.00 price target for the company. Weiss Ratings lowered International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, May 21st. Finally, Royal Bank Of Canada reissued an "outperform" rating on shares of International Business Machines in a report on Thursday, May 28th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $299.17.

International Business Machines Stock Performance

The stock has a market capitalization of $309.90 billion, a price-to-earnings ratio of 29.15, a price-to-earnings-growth ratio of 3.08 and a beta of 0.58. The firm has a fifty day moving average of $241.55 and a 200 day moving average of $270.75. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

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

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.1%. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. International Business Machines's dividend payout ratio is 59.77%.

Institutional Trading of International Business Machines

Several hedge funds and other institutional investors have recently bought and sold shares of IBM. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its stake in shares of International Business Machines by 424.6% in the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company's stock worth $77,234,000 after acquiring an additional 211,040 shares during the last quarter. GLOBALT Investments LLC GA boosted its stake in shares of International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company's stock worth $5,417,000 after acquiring an additional 2,930 shares during the last quarter. Waverton Investment Management Ltd boosted its stake in shares of International Business Machines by 3.3% in the third quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company's stock worth $280,439,000 after acquiring an additional 32,072 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its stake in shares of International Business Machines by 30.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company's stock worth $3,887,000 after acquiring an additional 3,029 shares during the last quarter. Finally, NEOS Investment Management LLC boosted its stake in shares of International Business Machines by 51.7% in the third quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company's stock worth $32,278,000 after acquiring an additional 38,973 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

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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