International Business Machines (NYSE:IBM) Trading Up 1.2% – Still a Buy?

International Business Machines Corporation (NYSE:IBM)’s stock price rose 1.2% on Monday . The stock traded as high as $228.55 and last traded at $226.3260. 6,698,775 shares traded hands during trading, a decline of 19% from the average daily volume of 8,250,313 shares. The stock had previously closed at $223.65.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: AI growth opportunities: IBM’s sovereign-AI partnership with India’s Sarvam could expand its public-sector business, while continued hybrid-cloud demand and improving estimates provide potential catalysts. IBM’s Sovereign AI Solutions for India
• Positive Sentiment: Quantum and software positioning: CEO Arvind Krishna said quantum computing could begin contributing meaningfully to revenue and profit by 2028 or 2029. IBM and Red Hat also launched a program giving more than 285 universities, NGOs and think tanks free access to Lightwell, an AI-assisted open-source vulnerability remediation platform. These initiatives support IBM’s longer-term technology narrative. IBM Quantum Computing Outlook IBM and Red Hat Lightwell Program
• Neutral Sentiment: Valuation and investor positioning are mixed: One analysis views IBM as inexpensive on intrinsic value despite weak valuation checks. Quiver data also showed recent insider purchases, substantial government-contract payments and a median analyst price target of $310, although institutional buying and selling were closely balanced. IBM Valuation Analysis IBM Trading and Institutional Data
• Negative Sentiment: Potential securities investigations add risk: Bleichmar Fonti & Auld and Pomerantz announced investigations into alleged misrepresentations concerning an IBM Z product slowdown. The announcements do not establish wrongdoing, but they can increase headline, litigation and reputational risk after the stock’s decline. IBM Securities Investigation Pomerantz IBM Investor Alert
• Negative Sentiment: Execution concerns remain: IBM’s latest quarterly revenue of $17.16 billion missed estimates, even as earnings met expectations and revenue increased only modestly year over year. Commentary warning investors not to underestimate IBM’s legacy scale highlights the debate between dependable cash generation and slower growth in established businesses. IBM Size and Power Analysis

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Argus dropped their price target on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a research report on Thursday, July 16th. JPMorgan Chase & Co. cut their target price on International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Wall Street Zen downgraded International Business Machines from a “hold” rating to a “sell” rating in a research report on Saturday, July 18th. Royal Bank Of Canada reiterated an “outperform” rating and set a $270.00 price target on shares of International Business Machines in a report on Tuesday, July 21st. Finally, Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given 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 Up 0.9%

The firm has a market capitalization of $223.54 billion, a PE ratio of 21.07, a P/E/G ratio of 2.22 and a beta of 0.70. The stock has a 50-day simple moving average of $260.82 and a 200-day simple moving average of $256.37. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63.

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

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

Hedge Funds Weigh In On International Business Machines

Several large investors have recently modified their holdings of the business. Norges Bank bought a new stake in International Business Machines during the 4th quarter valued at $2,446,429,000. Capital World Investors raised its stake in shares of International Business Machines by 29.2% during 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 purchasing an additional 4,976,756 shares during the period. Ascentis Wealth Management LLC lifted its holdings in International Business Machines by 27,169.6% during the 2nd quarter. Ascentis Wealth Management LLC now owns 3,224,635 shares of the technology company’s stock worth $906,800,000 after purchasing an additional 3,212,810 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in International Business Machines by 83.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company’s stock worth $1,663,847,000 after purchasing an additional 2,553,552 shares during the period. Finally, Corient Private Wealth LLC grew its holdings in International Business Machines by 359.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company’s stock valued at $561,814,000 after buying an additional 1,484,026 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

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.