International Business Machines (NYSE:IBM) Trading 2% Higher – Should You Buy?

Shares of International Business Machines Corporation (NYSE:IBM) traded up 2% during trading on Wednesday . The company traded as high as $238.62 and last traded at $237.3080. 5,243,765 shares changed hands during trading, a decline of 35% from the average session volume of 8,056,883 shares. The stock had previously closed at $232.67.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Quantum roadmap advances: The new cryogenic architecture supports IBM’s goal of developing a system with roughly 1,000 qubits by 2027 and launching IBM Quantum Starling, a planned fault-tolerant quantum computer, in 2029. The announcement strengthens IBM’s long-term technology narrative, although meaningful revenue from quantum computing remains several years away. IBM Connects Its First Modular Cryogenic Systems
• Positive Sentiment: Investor attention and analyst support: Coverage highlighted the milestone as a significant hardware hurdle cleared on the path to IBM’s quantum supercomputer. Reports also said analysts retain a “Moderate Buy” view, supporting sentiment despite some recent price-target reductions. IBM Clears Major Hardware Hurdle
• Positive Sentiment: Channel expansion: Arrow Electronics is expanding its IBM distribution coverage, which could improve IBM’s reach through channel partners and support sales growth. Arrow Electronics Expands IBM Distribution Coverage
• Neutral Sentiment: Research reported that IBM Maximo customers show higher maintenance maturity than industry peers, reinforcing the value proposition of IBM’s asset-management software but offering limited immediate financial impact. Verdantix Research on IBM Maximo
• Negative Sentiment: A securities-law firm announced an investigation into IBM following a substantial prior stock decline. The announcement does not establish wrongdoing, but it adds headline and potential litigation risk. IBM Securities Fraud Investigation

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Oppenheimer lowered shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. Citigroup cut their target price on International Business Machines from $255.00 to $245.00 and set a “buy” rating for the company in a research report on Friday, July 24th. BMO Capital Markets lowered their price target on International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research report on Thursday, July 23rd. KeyCorp downgraded International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. Finally, Weiss Ratings lowered International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Sixteen 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 data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $265.40.

International Business Machines Stock Up 2.0%

The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company has a market capitalization of $223.57 billion, a P/E ratio of 21.06, a PEG ratio of 2.30 and a beta of 0.70. The firm has a 50-day moving average price of $249.44 and a two-hundred day moving average price of $252.00.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.93. The business had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines’s revenue was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.80 earnings per share. Equities research analysts anticipate that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The business 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. The ex-dividend date is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. International Business Machines’s payout ratio is presently 59.98%.

Hedge Funds Weigh In On International Business Machines

Large investors have recently added to or reduced their stakes in the company. Basepoint Wealth LLC bought a new stake in International Business Machines in the fourth quarter valued at about $25,000. Portus Wealth Advisors LLC bought a new stake in International Business Machines in the first quarter valued at $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines during the second quarter valued at $27,000. Joseph Group Capital Management acquired a new position in International Business Machines in the fourth quarter valued at about $28,000. Finally, Cornerstone Financial Management LLC acquired a new stake in International Business Machines during the 4th quarter valued at $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.