International Business Machines (NYSE:IBM) Shares Up 3.5% - Still a Buy?

Key Points

• IBM shares rose 3.5% to about $240.12 in mid-day trading, supported by institutional buying and a median analyst price target of $315.
• IBM’s growth narrative is being reinforced by progress in quantum computing, AI and hybrid cloud, including a quantum-centric supercomputing project and partnerships with LTM, Red Hat and Rocket Software.
• Analyst sentiment is mixed but remains a “Moderate Buy” overall, with a consensus price target of $265.90; IBM also offers a 2.8% dividend yield, while insider selling and weaker recent revenue than estimates provide cautionary signals.

International Business Machines Corporation (NYSE:IBM - Get Free Report) was up 3.5% during mid-day trading on Wednesday . The stock traded as high as $241.50 and last traded at $240.1170. 6,318,708 shares were traded during mid-day trading, a decline of 18% from the average daily volume of 7,744,407 shares. The stock had previously closed at $232.09.

International Business Machines News Roundup

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

• Positive Sentiment: Institutional buying provides support. Quiver Quantitative reported that 1,936 institutions increased their IBM positions in the latest quarter, compared with 1,592 that reduced holdings. JPMorgan Chase, Sixth Street Partners and Wellington Management were among the largest buyers. The data also shows a median analyst price target of $315, well above recent trading levels. Quiver Quantitative IBM data
• Positive Sentiment: Quantum-computing progress strengthens IBM’s growth narrative. IBM, Cleveland Clinic and RIKEN advanced to the finals for the 2026 ACM Gordon Bell Prize after using quantum-centric supercomputing to model a 12,635-atom protein. The recognition highlights potential applications for IBM’s quantum and hybrid-computing technologies in life sciences. IBM quantum-computing research
• Positive Sentiment: Partner activity reinforces IBM’s AI and mainframe franchises. LTM is collaborating with IBM and Red Hat on Lightwell, an AI-driven open-source software remediation platform. Separately, Rocket Software launched a risk and compliance portfolio for IBM Z environments, potentially supporting demand for IBM’s mission-critical mainframe ecosystem. LTM IBM and Red Hat collaboration
• Neutral Sentiment: Analyst comparisons remain mixed. A Zacks analysis favored Arista Networks over IBM because of Arista’s stronger performance, improving estimates and AI-cloud growth, although IBM’s valuation and established enterprise exposure remain supportive. Arista versus IBM analysis
• Negative Sentiment: Insider activity is a modest cautionary signal. Quiver reported one open-market insider transaction during the past six months: Senior Vice President Robert David Thomas sold 25,000 IBM shares for an estimated $5.8 million. Congressional trading was also mixed, with more reported sales than purchases.

Analyst Upgrades and Downgrades

IBM has been the subject of several research reports. Argus reduced their target price on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a research note on Thursday, July 16th. KeyCorp cut International Business Machines to a "sector weight" rating in a report on Tuesday, June 23rd. Oppenheimer lowered International Business Machines from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 15th. Weiss Ratings cut International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 24th. Finally, Wedbush set a $350.00 target price on International Business Machines in a research note on Tuesday, June 2nd. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $265.90.

International Business Machines Stock Up 3.5%

The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a 50 day simple moving average of $239.81 and a 200-day simple moving average of $246.65. The stock has a market capitalization of $226.22 billion, a price-to-earnings ratio of 21.31, a price-to-earnings-growth ratio of 2.24 and a beta of 0.71.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. The company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.80 EPS. On average, sell-side analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.8%. International Business Machines's payout ratio is 59.98%.

Insiders Place Their Bets

In other news, SVP Robert Thomas sold 25,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.27% of the company's stock.

Institutional Investors Weigh In On International Business Machines

Large investors have recently bought and sold shares of the business. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines in the fourth quarter valued at $25,000. Cornerstone Financial Management LLC bought a new stake in International Business Machines during the 4th quarter worth about $28,000. Harborfront Financial Group LLC acquired a new stake in International Business Machines in the 2nd quarter valued at about $27,000. Hara Capital LLC acquired a new position in shares of International Business Machines during the second quarter worth approximately $28,000. Finally, SWAN Capital LLC bought a new stake in shares of International Business Machines during the third quarter valued at approximately $28,000. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.

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