International Business Machines (NYSE:IBM) Shares Up 2% - Still a Buy?

Key Points

• IBM shares rose 2% to about $258, although trading volume was 47% below the average session volume.
• Recent results beat expectations, with quarterly EPS of $2.95 and revenue of $17.10 billion, up 4.7% year over year. IBM’s software, hybrid cloud, AI, and quantum-computing developments are supporting its growth outlook.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $266.12, but investors remain concerned about IBM’s debt burden, slower growth, and weakened technical momentum; the stock offers a 2.6% dividend yield.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) were up 2% during trading on Thursday. The stock traded as high as $258.33 and last traded at $258.1870. 3,901,926 shares traded hands during trading, a decline of 47% from the average session volume of 7,405,145 shares. The stock had previously closed at $253.22.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM’s software business is showing signs of accelerating growth, particularly across hybrid cloud, enterprise infrastructure, and AI-related offerings. One analysis argues the improvement could make the recent share-price weakness an attractive entry point. IBM’s Software Business Is Picking Up Speed
• Positive Sentiment: IBM reported a quantum-computing advance described as achieving 99% accuracy after connecting quantum processors. Although commercial benefits are longer term, the development reinforces the company’s technology and AI narrative. IBM Achieves 99% Accuracy in Major Quantum Computing Breakthrough
• Positive Sentiment: IBM and the USTA renewed their partnership through 2031, keeping IBM as the US Open’s official AI and cloud partner. Record engagement with IBM-powered digital platforms provides validation for its cloud and AI capabilities. USTA and IBM Announce Five-Year Renewal
• Positive Sentiment: Industry forecasts identify IBM as a participant in expanding markets such as service virtualization, edge computing, SMB IT spending, configuration management, and battery analytics. These reports suggest additional long-term demand for IBM’s hybrid-cloud, automation, and AI services, though they do not represent company-specific bookings. Service Virtualization Global Strategic Business Report
• Neutral Sentiment: Analyst comparisons with Adobe and Qualcomm highlight IBM’s roughly $12 billion in free cash flow and enterprise reach, but also note slower growth and competitive pressures. The articles offer opinions on relative attractiveness rather than new financial guidance. Adobe vs. International Business Machines
• Negative Sentiment: Investors remain concerned that IBM’s debt burden could eventually constrain its long record of dividend increases. The stock also recently fell below its 200-day moving average, signaling weakened technical momentum. IBM Stock Is Down 13% in 2026. Is Its Dividend Still Safe?

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Morgan Stanley boosted their target price on shares of International Business Machines from $238.00 to $240.00 and gave the stock an "equal weight" rating in a report on Thursday, October 22nd. Weiss Ratings upgraded International Business Machines from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, October 14th. Royal Bank Of Canada restated an "outperform" rating and issued a $270.00 target price on shares of International Business Machines in a research note on Thursday, October 22nd. Citigroup raised their price target on International Business Machines from $245.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday, October 22nd. Finally, UBS Group upped their target price on International Business Machines from $236.00 to $243.00 and gave the stock a "neutral" rating in a report on Thursday, October 22nd. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $266.12.

International Business Machines Price Performance

The stock has a fifty day moving average of $234.26 and a 200 day moving average of $250.43. The stock has a market cap of $244.02 billion, a price-to-earnings ratio of 22.01, a P/E/G ratio of 2.50 and a beta of 0.73. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.10. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The company had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. During the same quarter in the prior year, the company earned $2.65 EPS. International Business Machines's quarterly revenue was up 4.7% on a year-over-year basis. On average, analysts expect that International Business Machines Corporation will post 12.41 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be given a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines's dividend payout ratio (DPR) is currently 57.63%.

Insider Buying and Selling

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.27% of the stock is currently owned by company insiders.

Institutional Trading of International Business Machines

A number of hedge funds have recently added to or reduced their stakes in the company. Woodmont Investment Counsel LLC lifted its stake in International Business Machines by 45.6% during the third quarter. Woodmont Investment Counsel LLC now owns 2,965 shares of the technology company's stock valued at $652,000 after buying an additional 928 shares in the last quarter. Traynor Capital Management Inc. boosted its holdings in shares of International Business Machines by 4.5% in the third quarter. Traynor Capital Management Inc. now owns 2,113 shares of the technology company's stock worth $465,000 after buying an additional 91 shares during the period. Virtue Capital Management LLC boosted its holdings in shares of International Business Machines by 15.2% in the third quarter. Virtue Capital Management LLC now owns 3,815 shares of the technology company's stock worth $839,000 after buying an additional 504 shares during the period. Hennessy Advisors Inc. increased its position in shares of International Business Machines by 0.9% in the third quarter. Hennessy Advisors Inc. now owns 22,800 shares of the technology company's stock worth $5,014,000 after acquiring an additional 204 shares in the last quarter. Finally, Columbia Bank increased its position in shares of International Business Machines by 16.8% in the third quarter. Columbia Bank now owns 3,640 shares of the technology company's stock worth $801,000 after acquiring an additional 524 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

About International Business Machines

International Business Machines Corporation NYSE: IBM, commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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