International Business Machines (NYSE:IBM) Trading Up 1.3% - Here's Why

Key Points

• International Business Machines (IBM) stock increased by 1.3% to $251.72, despite a significant decline in trading volume, which fell 78% from its average daily volume.
• Analysts have issued mixed ratings on IBM, with price targets ranging from $200 to $325, while the consensus rating remains as a "Hold" with an average target price of $268.75.
• The company recently announced a quarterly dividend of $1.68 per share, with a dividend yield of 2.6%, despite a high dividend payout ratio of 109.09%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares were up 1.3% on Monday . The stock traded as high as $252.31 and last traded at $251.72. Approximately 1,010,268 shares were traded during trading, a decline of 78% from the average daily volume of 4,647,236 shares. The stock had previously closed at $248.53.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. The Goldman Sachs Group lifted their price objective on International Business Machines from $270.00 to $310.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. UBS Group boosted their price target on shares of International Business Machines from $195.00 to $200.00 and gave the stock a "sell" rating in a research report on Thursday, July 24th. Erste Group Bank downgraded International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. Wedbush lifted their price objective 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, BMO Capital Markets upped their target price on shares of International Business Machines from $260.00 to $300.00 and gave the stock a "market perform" rating in a report on Friday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $268.75.

International Business Machines Stock Up 3.1%

The company has a market capitalization of $238.14 billion, a price-to-earnings ratio of 41.59, a P/E/G ratio of 3.83 and a beta of 0.71. The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91. The stock's fifty day simple moving average is $261.07 and its two-hundred day simple moving average is $257.01.

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. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The company had revenue of $16.98 billion for the quarter, compared to the consensus estimate 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, sell-side analysts anticipate that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 10th. Stockholders of record on Friday, August 8th will be paid a $1.68 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $6.72 annualized dividend and a dividend yield of 2.6%. International Business Machines's dividend payout ratio (DPR) is 109.09%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of International Business Machines by 2.1% during the 2nd quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company's stock worth $28,019,274,000 after buying an additional 1,913,708 shares during the last quarter. State Street Corp increased its holdings in shares of International Business Machines by 0.3% during the 2nd quarter. State Street Corp now owns 54,536,963 shares of the technology company's stock worth $16,076,406,000 after purchasing an additional 147,721 shares during the period. Geode Capital Management LLC lifted its position in shares of International Business Machines by 1.9% during the second quarter. Geode Capital Management LLC now owns 21,936,235 shares of the technology company's stock worth $6,444,527,000 after purchasing an additional 400,131 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of International Business Machines by 6.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company's stock worth $2,147,608,000 after acquiring an additional 524,633 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of International Business Machines by 9.8% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,112,092 shares of the technology company's stock valued at $1,783,281,000 after acquiring an additional 722,582 shares during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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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