International Business Machines (NYSE:IBM) Trading Up 2.2% After Analyst Upgrade

Key Points

• IBM shares rose 2.2% after Bank of America lifted its price target from $315 to $330 and kept a buy rating on the stock.
• Other analysts have been mixed, but overall sentiment remains constructive: IBM has a Moderate Buy consensus with an average price target of $306.47, and 16 analysts rate it a Buy.
• IBM has also been supported by recent fundamentals, including a beat on quarterly earnings and revenue and a slightly higher quarterly dividend, which now annualizes to a 2.2% yield.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) rose 2.2% during trading on Tuesday after Bank of America raised their price target on the stock from $315.00 to $330.00. Bank of America currently has a buy rating on the stock. International Business Machines traded as high as $311.80 and last traded at $305.9780. Approximately 8,466,198 shares were traded during trading, an increase of 16% from the average session volume of 7,286,341 shares. The stock had previously closed at $299.52.

A number of other research firms have also issued reports on IBM. Wolfe Research lowered shares of International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. Morgan Stanley raised shares of International Business Machines from an "equal weight" rating to an "overweight" rating in a research report on Tuesday, June 23rd. Roth Capital restated a "buy" rating on shares of International Business Machines in a report on Wednesday, June 3rd. Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a research report on Sunday, June 21st. Finally, Wedbush set a $350.00 price objective on International Business Machines in a research note on Tuesday, June 2nd. Sixteen equities research analysts have rated the stock with a Buy rating and nine 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 an average price target of $306.47.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Bank of America raised its price target on IBM to $330 and reiterated a bullish view, citing stronger software momentum, Red Hat contributions, infrastructure strength, and the possibility of a modest 2026 guidance increase. Article title
• Positive Sentiment: IBM unveiled compact z17 and LinuxONE 5 systems, expanding deployment options with rack-mount and single-frame configurations to address data-center space and cost constraints. The launch also includes AI and automation upgrades, which supports IBM’s enterprise growth story. Article title
• Positive Sentiment: IBM’s quantum-computing work continues to attract attention after reports highlighted a breakthrough collaboration with U.S. scientists on fusion-material research, reinforcing the company’s leadership narrative in quantum and advanced computing. Article title
• Neutral Sentiment: IBM was also mentioned in broader market coverage as the Dow hit all-time highs and blue-chip stocks continued to advance, which may be providing a supportive backdrop for the name. Article title
• Neutral Sentiment: Additional commentary from media and analysts flagged IBM as a trending Dow component and a potentially attractive “AI value” play, but these pieces mainly reinforce existing sentiment rather than introduce new fundamentals. Article title

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Baron Wealth Management LLC boosted its position in shares of International Business Machines by 8.8% during the 2nd quarter. Baron Wealth Management LLC now owns 1,603 shares of the technology company's stock valued at $451,000 after acquiring an additional 130 shares in the last quarter. GAMMA Investing LLC raised its position in International Business Machines by 16.4% in the second quarter. GAMMA Investing LLC now owns 28,756 shares of the technology company's stock worth $8,086,000 after purchasing an additional 4,048 shares in the last quarter. Grant Private Wealth Management Inc raised its position in International Business Machines by 14.9% in the second quarter. Grant Private Wealth Management Inc now owns 3,385 shares of the technology company's stock worth $952,000 after purchasing an additional 439 shares in the last quarter. Avior Wealth Management LLC lifted its stake in International Business Machines by 1.7% during the second quarter. Avior Wealth Management LLC now owns 7,829 shares of the technology company's stock worth $2,118,000 after purchasing an additional 128 shares during the period. Finally, Canandaigua National Bank & Trust Co. acquired a new stake in International Business Machines during the second quarter valued at approximately $8,282,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Stock Up 2.2%

The company has a market capitalization of $287.59 billion, a price-to-earnings ratio of 27.05, a P/E/G ratio of 3.00 and a beta of 0.68. The business has a fifty day simple moving average of $256.99 and a two-hundred day simple moving average of $266.06. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

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. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. During the same quarter last year, the company earned $1.60 EPS. International Business Machines's revenue was up 9.5% on a year-over-year basis. Equities analysts expect that International Business Machines Corporation will post 12.4 EPS for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Friday, May 8th. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is currently 59.77%.

About International Business Machines

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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