Investors Buy Large Volume of International Business Machines Call Options (NYSE:IBM)

International Business Machines Corporation (NYSE:IBM) was the recipient of unusually large options trading activity on Friday. Stock traders bought 108,601 call options on the company. This is an increase of 35% compared to the typical volume of 80,721 call options.

Key International Business Machines News

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

• Positive Sentiment: Citigroup lowered its price target to $245 from $255 but kept a buy rating, signaling continued upside potential despite the recent selloff. Citigroup price target update via Benzinga
• Positive Sentiment: IBM announced a deal to acquire HRL Laboratories to strengthen its quantum computing push, reinforcing its long-term growth narrative in advanced technologies. IBM acquires HRL Laboratories
• Positive Sentiment: Despite the weak report, IBM declared a quarterly dividend of $1.69 per share, which may support income-focused investors. IBM second-quarter results release
• Neutral Sentiment: Social-media and analyst reactions to Q2 earnings were mixed, with some saying software strength and stable cash flow could offset weakness in infrastructure, while others questioned whether consulting momentum will improve later in the year. Quiver Quant earnings reaction summary
• Neutral Sentiment: IBM’s Q2 revenue grew only modestly year over year, and while earnings matched estimates, the company’s guidance reset suggests investors are waiting for proof that second-half demand will recover. IBM earnings snapshot
• Negative Sentiment: IBM cut its 2026 constant-currency revenue growth outlook to 4%–5% from above 5%, citing delayed software deals and weaker mainframe sales, which is the biggest reason the stock is being sold off. IBM cuts annual revenue growth forecast
• Negative Sentiment: Q2 revenue of about $17.16 billion missed estimates, and the mainframe business was notably weak, adding to concerns that enterprise customers are shifting budgets toward AI-related hardware instead of IBM’s legacy systems. IBM Q2 results and strategy coverage
• Negative Sentiment: Law firms have launched securities-fraud investigations tied to the post-earnings stock drop, adding an overhang that could keep sentiment cautious in the near term. IBM fraud investigation notice

Wall Street Analyst Weigh In

Several research firms have weighed in on IBM. KeyCorp cut International Business Machines to a “sector weight” rating in a research report on Tuesday, June 23rd. Bank of America boosted their price target on International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, July 6th. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines in a research note on Thursday. HSBC set a $175.00 target price on shares of International Business Machines and gave the company a “reduce” rating in a research report on Thursday, July 16th. Finally, Morgan Stanley decreased their target price on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating on the stock in a research note on Thursday. Fifteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Trading Up 3.6%

NYSE IBM traded up $7.50 on Friday, hitting $214.16. The company’s stock had a trading volume of 10,505,984 shares, compared to its average volume of 8,203,974. The company’s 50-day moving average is $263.03 and its 200 day moving average is $260.82. The firm has a market cap of $201.28 billion, a PE ratio of 19.00, a PEG ratio of 2.23 and a beta of 0.68. International Business Machines has a 1-year low of $199.19 and a 1-year high of $332.46. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 36.58%. The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the business earned $2.80 earnings per share. International Business Machines’s revenue was up 1.1% compared to the same quarter last year. As a group, analysts predict that International Business Machines will post 12.15 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 3.2%. International Business Machines’s dividend payout ratio is presently 59.77%.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock valued at $28,796,390,000 after purchasing an additional 1,439,824 shares in the last quarter. State Street Corp grew its stake in shares of International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after buying an additional 518,321 shares during the period. Geode Capital Management LLC grew its stake in shares of International Business Machines by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock valued at $6,679,105,000 after buying an additional 336,069 shares during the period. Capital World Investors increased its position in International Business Machines by 29.2% in the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after buying an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in International Business Machines by 7.0% during the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after buying an additional 1,049,602 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

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.