International Business Machines Corporation (NYSE:IBM) Given Consensus Rating of “Moderate Buy” by Brokerages

International Business Machines Corporation (NYSE:IBM) has been assigned a consensus recommendation of “Moderate Buy” from the twenty-eight research firms that are presently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, eleven have issued a hold recommendation and sixteen have issued a buy recommendation on the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $265.90.

IBM has been the subject of several recent analyst reports. Bank of America increased their price objective on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a report on Monday, July 6th. The Goldman Sachs Group set a $270.00 target price on shares of International Business Machines in a report on Thursday, July 23rd. Susquehanna upped their price target on shares of International Business Machines from $225.00 to $235.00 and gave the stock a “neutral” rating in a research report on Monday, August 31st. Stifel Nicolaus cut their price target on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a research report on Friday, July 17th.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM and Lockheed Martin announced a quantum innovation hub at ETH Zurich, supported by Switzerland’s defense-procurement offset program. The initiative will deploy Switzerland’s first IBM Quantum System Two at the Swiss National Supercomputing Centre, giving IBM a multi-year platform for quantum-computing research in areas such as sensing and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Positive Sentiment: IBM and NASA released an open-source Lunar Foundation Model trained on extensive lunar-observation data. The model reportedly improves identification of lunar features, including potential ice deposits and craters, highlighting IBM’s AI capabilities and government-research relationships, although the near-term revenue impact is likely limited. IBM and NASA Release Open-Source AI Model
• Positive Sentiment: Market commentary continues to identify IBM as an established-company route to AI and quantum exposure, supported by its hybrid-cloud, enterprise-software and consulting businesses. A Cleveland Clinic, RIKEN and IBM team was also named a finalist for the ACM Gordon Bell Prize for quantum-centric supercomputing research. IBM Team Advances to Gordon Bell Prize Finals
• Neutral Sentiment: A shareholder-rights law firm announced an investigation into IBM related to its previously previewed second-quarter results. Such notices are often solicitation-driven and do not establish wrongdoing, but they can add headline and legal-risk pressure. Law Firm Investigation Report
• Negative Sentiment: IBM’s latest quarterly results showed earnings in line with estimates but revenue below expectations, reinforcing concerns that growth is modest. Analysts also continue to view competing AI-cloud names as having stronger near-term growth and momentum.
• Negative Sentiment: Investors remain focused on IBM’s earlier AI-security investment and whether related partnerships will translate into durable software revenue. Those questions, combined with a premium valuation and broader-market weakness, appear to have outweighed the longer-term quantum and AI announcements. IBM AI Security Investment

International Business Machines Stock Performance

IBM opened at $234.06 on Friday. The business’s 50-day simple moving average is $237.79 and its 200 day simple moving average is $246.38. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The firm has a market capitalization of $220.51 billion, a PE ratio of 20.77, a PEG ratio of 2.29 and a beta of 0.71.

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, meeting analysts’ consensus estimates of $2.93. The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business’s revenue was up 1.1% compared to the same quarter last year. During the same period last year, the company earned $2.80 earnings per share. As a group, sell-side analysts expect that International Business Machines will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date was Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is 59.98%.

Insider Buying and Selling

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president owned 47,800 shares of the company’s stock, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

A number of hedge funds have recently made changes to their positions in the business. Basepoint Wealth LLC acquired a new position in shares of International Business Machines during the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC acquired a new stake in International Business Machines during the 1st quarter valued at $26,000. Harborfront Financial Group LLC bought a new position in International Business Machines during the second quarter worth $27,000. Cornerstone Financial Management LLC bought a new position in International Business Machines during the fourth quarter worth $28,000. Finally, Hara Capital LLC acquired a new position in shares of International Business Machines in the second quarter valued at $28,000. 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.