International Business Machines (NYSE:IBM) Trading Up 5.3% - What's Next?

Key Points

• International Business Machines (IBM) shares rose by 5.3% to $281.76, significantly increasing trading volume by 144% compared to the average.
• Analysts have mixed opinions on IBM, with ratings including one "Strong Buy," seven "Buy," nine "Hold," and one "Sell," while the consensus price target is set at $275.00.
• IBM reported earnings of $2.80 per share, exceeding expectations, with a revenue increase of 7.7% year-over-year, and declared a quarterly dividend of $1.68 per share with a yield of 2.4%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) traded up 5.3% on Thursday . The company traded as high as $284.23 and last traded at $281.76. 11,492,871 shares were traded during trading, an increase of 144% from the average session volume of 4,718,414 shares. The stock had previously closed at $267.53.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Erste Group Bank cut shares of International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. Bank of America cut their price objective on shares of International Business Machines from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Thursday, July 24th. The Goldman Sachs Group boosted their price objective on shares of International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a research report on Wednesday, July 2nd. Melius Research raised shares of International Business Machines to a "strong-buy" rating in a research report on Monday, July 7th. Finally, BMO Capital Markets boosted their price target on shares of International Business Machines from $260.00 to $300.00 and gave the stock a "market perform" rating in a research report on Friday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $275.00.

International Business Machines Stock Performance

The stock's 50-day simple moving average is $254.10 and its 200-day simple moving average is $257.55. The stock has a market cap of $261.86 billion, a price-to-earnings ratio of 45.74, a price-to-earnings-growth ratio of 4.19 and a beta of 0.71. 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 announced its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $16.98 billion for the quarter, compared to analyst estimates of $16.58 billion. During the same quarter in the prior year, the business posted $2.43 EPS. The business's revenue was up 7.7% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. Analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Friday, August 8th were given a dividend of $1.68 per share. The ex-dividend date was Friday, August 8th. This represents a $6.72 annualized dividend and a dividend yield of 2.4%. International Business Machines's dividend payout ratio (DPR) is currently 109.09%.

Institutional Trading of International Business Machines

Several large investors have recently made changes to their positions in IBM. Norges Bank acquired a new stake in shares of International Business Machines during the 2nd quarter worth approximately $2,011,122,000. GAMMA Investing LLC raised its stake in shares of International Business Machines by 29,564.2% during the first quarter. GAMMA Investing LLC now owns 4,399,790 shares of the technology company's stock valued at $10,940,520,000 after acquiring an additional 4,384,958 shares during the last quarter. GQG Partners LLC bought a new position in shares of International Business Machines during the first quarter valued at $1,040,057,000. Nuveen LLC bought a new position in shares of International Business Machines during the first quarter valued at $960,386,000. Finally, Vanguard Group Inc. raised its stake in shares of International Business Machines by 2.1% during 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 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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