International Business Machines Target of Unusually High Options Trading (NYSE:IBM)

Key Points

• International Business Machines (IBM) experienced a significant surge in options trading, with 65,072 call options traded, marking an increase of approximately 87% from the typical volume.
• Several hedge funds have made substantial investments in IBM, including Norges Bank, which purchased $2.01 billion worth of shares, while GAMMA Investing LLC increased its stake by 29,564.2%.
• Analysts have varied opinions on IBM, with UBS raising its price target to $200 but maintaining a "sell" rating, and Goldman Sachs increasing their target to $310 with a "buy" rating, reflecting mixed sentiment among analysts.

International Business Machines Corporation (NYSE:IBM - Get Free Report) saw some unusual options trading activity on Thursday. Traders acquired 65,072 call options on the stock. This represents an increase of approximately 87% compared to the typical volume of 34,820 call options.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently modified their holdings of IBM. Norges Bank purchased a new position in International Business Machines in the 2nd quarter worth approximately $2,011,122,000. GAMMA Investing LLC grew its position in shares of International Business Machines by 29,564.2% in the 1st quarter. GAMMA Investing LLC now owns 4,399,790 shares of the technology company's stock worth $10,940,520,000 after buying an additional 4,384,958 shares during the last quarter. GQG Partners LLC bought a new stake in shares of International Business Machines in the 1st quarter worth approximately $1,040,057,000. Nuveen LLC bought a new stake in shares of International Business Machines in the 1st quarter worth approximately $960,386,000. Finally, Vanguard Group Inc. grew its position in shares of International Business Machines by 2.1% in 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. 58.96% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on IBM. UBS Group increased their price target on International Business Machines from $195.00 to $200.00 and gave the stock a "sell" rating in a research note on Thursday, July 24th. Wall Street Zen upgraded International Business Machines from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Sanford C. Bernstein assumed coverage on International Business Machines in a research note on Monday, September 15th. They set a "market perform" rating and a $280.00 price target for the company. The Goldman Sachs Group increased their price objective on International Business Machines from $270.00 to $310.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Finally, BMO Capital Markets increased their price objective on 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 analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $275.00.

International Business Machines Price Performance

Shares of NYSE:IBM traded up $15.26 on Thursday, hitting $282.79. The company's stock had a trading volume of 6,961,550 shares, compared to its average volume of 4,695,650. The company has a 50-day simple moving average of $254.10 and a 200 day simple moving average of $257.55. International Business Machines has a 1 year low of $203.51 and a 1 year high of $296.16. The company has a market capitalization of $262.82 billion, a PE ratio of 45.73, a PEG ratio of 4.19 and a beta of 0.71. The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, beating analysts' consensus estimates of $2.65 by $0.15. The company had revenue of $16.98 billion for the quarter, compared to analysts' expectations of $16.58 billion. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%.International Business Machines's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period last year, the firm posted $2.43 EPS. International Business Machines has set its FY 2025 guidance at EPS. Sell-side analysts forecast that International Business Machines will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

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

About International Business Machines

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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