International Business Machines (NYSE:IBM) Trading Up 1.5% - Should You Buy?

Key Points

• International Business Machines (IBM) shares increased by 1.5%, trading at approximately $293.84, with a significant rise in trading volume.
• Wall Street analysts have mixed ratings for IBM, with one "Strong Buy," seven "Buy," eight "Hold," and one "Sell," leading to an average price target of $284.62.
• The company recently declared a quarterly dividend of $1.68 per share, resulting in an annualized dividend yield of 2.3%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares shot up 1.5% during mid-day trading on Tuesday . The company traded as high as $301.04 and last traded at $293.84. 7,153,932 shares traded hands during trading, an increase of 51% from the average session volume of 4,751,972 shares. The stock had previously closed at $289.42.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on IBM. Sanford C. Bernstein assumed coverage on International Business Machines in a report on Monday, September 15th. They issued a "market perform" rating and a $280.00 price target for the company. Erste Group Bank downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Thursday, August 14th. Stifel Nicolaus raised their price target on International Business Machines from $290.00 to $310.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. BMO Capital Markets upped their price objective on International Business Machines from $260.00 to $300.00 and gave the stock a "market perform" rating in a research note on Friday, July 18th. Finally, Wedbush increased their target price on International Business Machines from $300.00 to $325.00 and gave the stock an "outperform" rating in a research report on Friday, June 20th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $284.62.

International Business Machines Price Performance

The business's 50-day simple moving average is $255.71 and its 200 day simple moving average is $259.70. The company has a market capitalization of $273.10 billion, a P/E ratio of 47.70, a P/E/G ratio of 4.44 and a beta of 0.73. 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 posted its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 EPS for the quarter, beating analysts' consensus estimates of $2.65 by $0.15. The business had revenue of $16.98 billion for the quarter, compared to analyst estimates of $16.58 billion. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The business's revenue for the quarter was up 7.7% on a year-over-year basis. During the same quarter last year, the business earned $2.43 earnings per share. International Business Machines has set its FY 2025 guidance at EPS. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Friday, August 8th were paid a dividend of $1.68 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.3%. International Business Machines's dividend payout ratio (DPR) is 109.09%.

Institutional Trading of International Business Machines

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. New Covenant Trust Company N.A. lifted its holdings in International Business Machines by 6.1% in the 3rd quarter. New Covenant Trust Company N.A. now owns 872 shares of the technology company's stock worth $246,000 after purchasing an additional 50 shares during the last quarter. Acropolis Investment Management LLC raised its position in shares of International Business Machines by 13.4% in the third quarter. Acropolis Investment Management LLC now owns 2,491 shares of the technology company's stock valued at $734,000 after purchasing an additional 294 shares during the period. Lbmc Investment Advisors LLC lifted its stake in shares of International Business Machines by 15.8% in the third quarter. Lbmc Investment Advisors LLC now owns 6,178 shares of the technology company's stock worth $1,743,000 after buying an additional 844 shares during the last quarter. Silverberg Bernstein Capital Management LLC boosted its holdings in shares of International Business Machines by 4.2% during the 3rd quarter. Silverberg Bernstein Capital Management LLC now owns 15,050 shares of the technology company's stock worth $4,247,000 after buying an additional 600 shares during the period. Finally, Assenagon Asset Management S.A. boosted its holdings in shares of International Business Machines by 144.2% during the 3rd quarter. Assenagon Asset Management S.A. now owns 663,011 shares of the technology company's stock worth $187,075,000 after buying an additional 391,466 shares during the period. 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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