International Business Machines (NYSE:IBM) Trading 1.2% Higher – Here’s What Happened

International Business Machines Corporation (NYSE:IBM)’s share price rose 1.2% during trading on Friday . The stock traded as high as $224.76 and last traded at $224.3940. 9,056,200 shares traded hands during trading, an increase of 10% from the average daily volume of 8,244,686 shares. The stock had previously closed at $221.74.

International Business Machines News Roundup

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

• Positive Sentiment: Quantum-computing milestones: IBM and research partners reported demonstrations of “quantum advantage,” including simulations and logical-circuit work that reportedly exceeded leading classical-computing methods. The developments could strengthen IBM’s long-term quantum commercialization story and support management’s goal of generating quantum-related revenue by 2028. IBM and Algorithmiq Demonstrate Quantum Advantage
• Positive Sentiment: Banking-platform collaboration: UniCredit, Accenture and IBM are working on a next-generation European banking platform. The project may create additional hybrid-cloud, AI and consulting opportunities for IBM, although its eventual financial contribution was not disclosed. UniCredit, Accenture and IBM Collaborate
• Positive Sentiment: AI and hybrid-cloud positioning: Recurring software revenue, Red Hat momentum and a growing AI-consulting backlog support IBM’s 2026 outlook. Its focus on security, governance, data control and trusted AI could appeal to enterprises that remain cautious about deploying generative AI. IBM Hybrid Cloud and AI Outlook
• Neutral Sentiment: Mixed second-quarter backdrop: IBM met the $2.93 consensus EPS estimate and revenue rose about 1% year over year, but revenue of $17.16 billion fell short of the $17.46 billion estimate. Deal timing and mainframe weakness remain constraints, while management’s enterprise-AI demand has yet to translate into consistently faster revenue growth. IBM Stock: Three Reasons Q2 Earnings
• Negative Sentiment: Valuation and leverage concerns: Analysts note that IBM’s pullback makes the stock more attractive, but modest growth, significant leverage and a still-full valuation prevent it from appearing clearly undervalued. Investors may therefore require stronger revenue acceleration before assigning the shares a higher multiple. Is IBM Stock Worth Buying After Its Pullback?
• Negative Sentiment: Investor-investigation announcements: Bleichmar Fonti & Auld and Pomerantz announced investigations related to IBM’s sharp stock decline. These announcements do not establish wrongdoing, but they add headline and potential litigation risk. Pomerantz IBM Investor Alert

Analysts Set New Price Targets

A number of brokerages have weighed in on IBM. Susquehanna decreased their price target on International Business Machines from $303.00 to $225.00 and set a “neutral” rating for the company in a research note on Friday, July 24th. Piper Sandler raised International Business Machines to an “overweight” rating in a research note 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. The Goldman Sachs Group set a $270.00 price target on International Business Machines in a report on Thursday, July 23rd. Finally, Citigroup dropped their price target on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a research report on Friday, July 24th. Fifteen 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. According to MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and an average price target of $265.40.

International Business Machines Stock Performance

The firm’s fifty day moving average price is $262.30 and its 200-day moving average price is $258.04. The company has a market cap of $211.41 billion, a P/E ratio of 19.91, a P/E/G ratio of 2.22 and a beta of 0.68. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same period last year, the business earned $2.80 earnings per share. The firm’s revenue for the quarter was up 1.1% compared to the same quarter last year. As a group, research analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is presently 59.98%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of IBM. McGowan Group Asset Management Inc. increased its position in shares of International Business Machines by 1.2% in the fourth quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock worth $798,000 after purchasing an additional 33 shares during the last quarter. Exencial Wealth Advisors LLC raised its stake in International Business Machines by 0.4% in the fourth quarter. Exencial Wealth Advisors LLC now owns 7,874 shares of the technology company’s stock valued at $2,332,000 after purchasing an additional 34 shares in the last quarter. Howard Capital Management Inc. lifted its position in International Business Machines by 0.5% during the fourth quarter. Howard Capital Management Inc. now owns 6,793 shares of the technology company’s stock valued at $2,012,000 after purchasing an additional 35 shares during the last quarter. Prasad Wealth Partners LLC lifted its position in International Business Machines by 1.0% during the fourth quarter. Prasad Wealth Partners LLC now owns 3,604 shares of the technology company’s stock valued at $1,068,000 after purchasing an additional 35 shares during the last quarter. Finally, Orca Wealth Management LLC grew its stake in International Business Machines by 3.7% in the 4th quarter. Orca Wealth Management LLC now owns 975 shares of the technology company’s stock worth $285,000 after buying an additional 35 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company Profile

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.