International Business Machines (NYSE:IBM) Stock Rating Raised to Hold at Wall Street Zen

Wall Street Zen upgraded shares of International Business Machines (NYSE:IBM) from a sell rating to a hold rating in a research report sent to investors on Saturday,Wall Street Zen reports.

IBM has been the subject of a number of other research reports. Evercore decreased their target price on International Business Machines from $310.00 to $250.00 and set an “outperform” rating for the company in a report on Thursday, July 16th. Craig Hallum assumed coverage on shares of International Business Machines in a report on Wednesday, August 19th. They issued a “buy” rating on the stock. The Goldman Sachs Group reissued a “buy” rating and set a $300.00 price target on shares of International Business Machines in a research report on Thursday. JPMorgan Chase & Co. lifted their price objective on shares of International Business Machines from $250.00 to $269.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Robert W. Baird lifted their price objective on shares of International Business Machines from $230.00 to $260.00 and gave the company a “neutral” rating in a research note on Thursday. Twenty research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $266.12.

International Business Machines Stock Performance

Shares of IBM opened at $253.69 on Friday. The stock has a 50-day moving average of $233.06 and a two-hundred day moving average of $243.70. International Business Machines has a one year low of $199.19 and a one year high of $332.46. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.74 and a current ratio of 0.85. The stock has a market cap of $239.01 billion, a P/E ratio of 21.63, a P/E/G ratio of 2.43 and a beta of 0.73.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating analysts’ consensus estimates of $2.85 by $0.10. The business had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The company’s revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the company earned $2.65 earnings per share. As a group, research analysts predict that International Business Machines will post 12.41 EPS for the current year.

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be paid a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. International Business Machines’s dividend payout ratio is presently 57.63%.

Insider Buying and Selling

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines 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 completion of the transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $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 Securities & Exchange Commission, which can be accessed through this hyperlink. 0.27% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On International Business Machines

Several hedge funds have recently bought and sold shares of IBM. Portus Wealth Advisors LLC purchased a new position in International Business Machines in the first quarter valued at $26,000. Harborfront Financial Group LLC acquired a new position in shares of International Business Machines in the second quarter worth about $27,000. Hara Capital LLC purchased a new stake in shares of International Business Machines during the 2nd quarter worth about $28,000. Bare Financial Services Inc boosted its stake in shares of International Business Machines by 114.6% during the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock worth $29,000 after acquiring an additional 55 shares in the last quarter. Finally, Caitlin John LLC purchased a new stake in shares of International Business Machines during the 2nd quarter worth about $35,000. Hedge funds and other institutional investors own 58.96% of the company’s stock.

More International Business Machines News

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

• Positive Sentiment: IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded analyst expectations. Software growth accelerated to 9% at constant currency, infrastructure demand improved, and operating pretax margins expanded by 70 basis points. IBM Beats Q3 Earnings Estimates on Software, Infrastructure Growth
• Positive Sentiment: Management raised its full-year free-cash-flow outlook, supported by stronger software performance, Red Hat demand and enterprise AI activity. Transaction-processing revenue also rose 10%, suggesting improving demand in key recurring-revenue businesses. IBM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts raised their earnings estimates or price targets following the results. Erste Group increased its FY2027 EPS forecast to $13.40 from $13.13, while JPMorgan, RBC and Stifel reiterated positive ratings and lifted targets. IBM Analyst Estimates and Ratings
• Neutral Sentiment: IBM’s updated FY2026 revenue guidance of $70.2 billion to $70.9 billion broadly brackets the $70.4 billion consensus estimate. The outlook was not meaningfully raised, leaving investors focused on whether the software rebound can continue.
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, or $6.76 annualized, reinforcing its appeal to income-oriented investors. A separate dividend-stock article highlighted IBM’s decades-long record of payout increases. IBM Declares $1.69 Dividend
• Negative Sentiment: Investors remain concerned that roughly half of the software growth benefited from the Confluent acquisition and that management’s unchanged revenue outlook implies slower growth later in the year. IBM’s comments that lower-cost, open-weight AI models can deliver comparable performance also raised questions about pricing power and AI monetization. Why Isn’t IBM’s Stock Bouncing Back After Strong Earnings Results?
• Negative Sentiment: Some analysts view IBM’s valuation as demanding relative to its modest underlying growth, while slower Consulting performance, debt and uncertainty over the durability of the software rebound could limit further upside.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.