International Business Machines (NYSE:IBM) Upgraded by DZ Bank to "Buy" Rating

Key Points

• DZ Bank upgraded IBM from "hold" to "buy" and set a $295 price target, implying roughly a 27% upside from the current price.
• IBM beat Q1 expectations with EPS of $1.91 (vs. $1.81 consensus) and revenue of $15.92 billion (up ~9.5% year‑over‑year), driven by demand for hybrid cloud, AI‑related services and strong mainframe sales.
• Despite the beat and a dividend raise to $1.69, shares fell about 8% as management kept full‑year guidance steady and investors reacted to mixed analyst reactions and renewed AI‑related concerns.

International Business Machines (NYSE:IBM - Get Free Report) was upgraded by research analysts at DZ Bank from a "hold" rating to a "buy" rating in a report issued on Friday. The brokerage presently has a $295.00 price objective on the technology company's stock. DZ Bank's price target would indicate a potential upside of 27.26% from the company's current price.

Several other analysts have also commented on IBM. Citigroup began coverage on shares of International Business Machines in a research report on Friday, April 10th. They set a "buy" rating and a $285.00 price target on the stock. Royal Bank Of Canada lowered their target price on shares of International Business Machines from $361.00 to $330.00 and set an "outperform" rating on the stock in a research note on Friday, April 17th. BMO Capital Markets dropped their target price on International Business Machines from $290.00 to $270.00 and set a "market perform" rating on the stock in a research report on Thursday. Morgan Stanley upped their price target on International Business Machines from $215.00 to $225.00 and gave the stock an "equal weight" rating in a report on Thursday. Finally, Argus set a $360.00 price objective on International Business Machines in a report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $300.25.

International Business Machines Stock Down 8.0%

Shares of IBM stock opened at $231.81 on Friday. International Business Machines has a twelve month low of $220.72 and a twelve month high of $324.90. The stock has a market cap of $217.44 billion, a P/E ratio of 20.50, a P/E/G ratio of 2.64 and a beta of 0.69. The stock has a 50 day moving average of $246.48 and a 200 day moving average of $280.87. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 1.67.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data 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 business 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 38.37% and a net margin of 15.61%.The business's quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.60 EPS. As a group, sell-side analysts expect that International Business Machines will post 12.34 EPS for the current year.

Insider Buying and Selling

In other news, Director David N. Farr bought 1,000 shares of the firm's stock in a transaction dated Friday, January 30th. The shares were acquired at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the transaction, the director directly owned 9,258 shares in the company, valued at $2,814,432. The trade was a 12.11% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Michael Miebach purchased 434 shares of the stock in a transaction dated Wednesday, February 25th. The stock was purchased at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the purchase, the director directly owned 434 shares of the company's stock, valued at approximately $101,265.22. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 1,484 shares of company stock valued at $417,157 in the last three months. Insiders own 0.27% of the company's stock.

Institutional Investors Weigh In On International Business Machines

A number of hedge funds have recently modified their holdings of the business. iA Global Asset Management Inc. purchased a new position in shares of International Business Machines in the first quarter worth about $272,000. Impact Partnership Wealth LLC grew its stake in International Business Machines by 218.6% during the 1st quarter. Impact Partnership Wealth LLC now owns 4,546 shares of the technology company's stock valued at $1,102,000 after acquiring an additional 3,119 shares in the last quarter. Financial & Tax Architects LLC raised its holdings in International Business Machines by 6.7% in the 1st quarter. Financial & Tax Architects LLC now owns 30,477 shares of the technology company's stock valued at $7,387,000 after acquiring an additional 1,914 shares during the last quarter. Premier Path Wealth Partners LLC raised its holdings in International Business Machines by 1.1% in the 1st quarter. Premier Path Wealth Partners LLC now owns 6,753 shares of the technology company's stock valued at $1,637,000 after acquiring an additional 71 shares during the last quarter. Finally, Inman Jager Wealth Management LLC lifted its stake in International Business Machines by 5.8% in the 1st quarter. Inman Jager Wealth Management LLC now owns 8,042 shares of the technology company's stock worth $1,949,000 after purchasing an additional 438 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines News Roundup

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

• Positive Sentiment: IBM beat Q1 revenue and EPS estimates, with revenue up ~9.5% and non‑GAAP EPS of $1.91, showing demand for hybrid cloud and AI-related services. Read More.
• Positive Sentiment: The company raised its quarterly dividend to $1.69 (31st consecutive annual raise), supporting income investors and signaling confidence in free cash flow. Read More.
• Positive Sentiment: Infrastructure/mainframe sales were strong (Z mainframe hardware growth cited), helping margins and offsetting some weakness elsewhere. Read More.
• Neutral Sentiment: Management maintained full‑year guidance rather than raising it after a beat — a cautious stance that investors read as mixed rather than outright negative. Read More.
• Neutral Sentiment: Analysts issued mixed reactions: some trimmed price targets (Wedbush/BMO adjustments noted), while others remain constructive; this created uneven research flow rather than a consensus. Read More.
• Negative Sentiment: Investors reacted to softer-than-expected software momentum and renewed "AI disruption" concerns—market participants worry AI could compress traditional software revenue models. That fear amplified selling pressure across the sector. Read More.
• Negative Sentiment: IBM shares fell sharply (around an 8% intraday decline) as traders digested the cautious tone, sector sell‑off and an analyst price‑target trim from Wedbush that pressured sentiment. Read More.
• Negative Sentiment: Broader market drivers — oil and geopolitical uncertainty around Iran — also reduced risk appetite for tech/software names, exacerbating IBM's post‑earnings drop. Read More.

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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