International Business Machines (NYSE:IBM) Shares Up 3.5% – Time to Buy?

International Business Machines Corporation (NYSE:IBM) traded up 3.5% during trading on Wednesday . The stock traded as high as $241.50 and last traded at $240.1170. Approximately 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.

Key Headlines Impacting International Business Machines

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.

Analysts Set New Price Targets

Several brokerages have weighed in on IBM. Argus dropped their price objective on International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a report on Thursday, July 16th. Needham & Company LLC started coverage on shares of International Business Machines in a research note on Wednesday, June 3rd. They issued a “buy” rating on the stock. JPMorgan Chase & Co. cut their price objective on shares of International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a report on Friday, July 17th. HSBC set a $175.00 price objective on shares of International Business Machines and gave the company a “reduce” rating in a research note on Thursday, July 16th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $270.00 target price on shares of International Business Machines in a research report on Tuesday, July 21st. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $265.90.

International Business Machines Trading Up 3.5%

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 stock has a market capitalization of $226.22 billion, a P/E ratio of 21.31, a price-to-earnings-growth ratio of 2.24 and a beta of 0.71. The company has a fifty day simple moving average of $239.81 and a two-hundred day simple moving average of $246.65.

International Business Machines (NYSE:IBM) last released 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 return on equity of 35.65% and a net margin of 15.52%.The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter last year, the firm posted $2.80 earnings per share. International Business Machines’s revenue was up 1.1% compared to the same quarter last year. On average, sell-side analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Dividend Announcement

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 issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio is 59.98%.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction 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 sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.27% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in shares of International Business Machines by 424.6% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock worth $77,234,000 after buying an additional 211,040 shares in the last quarter. Assetmark Inc. lifted its position in shares of International Business Machines by 24.8% during the 1st quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock valued at $15,624,000 after acquiring an additional 12,791 shares during the period. GLOBALT Investments LLC GA lifted its position in shares of International Business Machines by 19.1% during the 4th quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after acquiring an additional 2,930 shares during the period. Rice Partnership LLC bought a new position in International Business Machines during the fourth quarter worth $3,317,000. Finally, Sage Investment Advisers LLC acquired a new stake in International Business Machines in the fourth quarter worth $4,101,000. 58.96% of the stock is owned by institutional investors and hedge funds.

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.