International Business Machines (NYSE:IBM) Trading 3.1% Higher – Still a Buy?

International Business Machines Corporation (NYSE:IBM) shot up 3.1% on Tuesday . The company traded as high as $327.98 and last traded at $329.72. 32,759,785 shares were traded during trading, an increase of 262% from the average session volume of 9,042,230 shares. The stock had previously closed at $319.6670.

More International Business Machines News

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

• Positive Sentiment: IBM announced plans to invest more than $10 billion over five years in quantum computing, including R&D, manufacturing, M&A, and ecosystem expansion. Investors appear to be betting this could strengthen IBM’s long-term growth story and leadership in fault-tolerant quantum systems. IBM Commits More Than $10 Billion to Quantum Computing, Funding Its Roadmap from Today’s Leading Systems to the World’s First Fault-Tolerant Quantum Computers
• Positive Sentiment: Wedbush raised its price target on IBM to $350 from $320 and kept an outperform rating, saying fears that AI tools would disrupt IBM’s enterprise business have not played out and that execution is improving. Wedbush lifts IBM price target as AI transformation fears give way to execution confidence
• Positive Sentiment: Additional analyst commentary suggests IBM still has room to run after its recent rally, reinforcing momentum in the stock as investors rotate into software and AI-related names. How High Can IBM’s Stock Price Rise?
• Neutral Sentiment: Market chatter also points to IBM as a beneficiary of a broader quantum-trade revaluation, with some articles comparing it favorably against pure-play quantum companies and highlighting its expanding role in the sector. IBM (IBM) Stock Surges Nearly 30% in Historic Four-Day Rally: What’s Driving the Momentum
• Neutral Sentiment: Some valuation-focused coverage notes that after the sharp run-up, IBM could look expensive by certain metrics, which may temper upside expectations even as momentum stays strong. A Look At IBM (IBM) Valuation After Quantum And AI Investments Drive Rapid Share Price Gains

Wall Street Analyst Weigh In

A number of equities research analysts have commented on IBM shares. HSBC upgraded International Business Machines from a “reduce” rating to a “hold” rating and lifted their target price for the company from $218.00 to $231.00 in a research report on Tuesday, April 28th. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price on the stock in a research report on Friday, April 24th. Erste Group Bank downgraded International Business Machines from a “buy” rating to a “hold” rating in a research report on Wednesday, February 18th. Weiss Ratings downgraded International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, May 21st. Finally, Morgan Stanley lifted their target price on International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $299.17.

International Business Machines Price Performance

The company has a fifty day moving average of $241.55 and a 200-day moving average of $270.75. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The stock has a market cap of $309.90 billion, a PE ratio of 29.15, a P/E/G ratio of 3.08 and a beta of 0.58.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. During the same period last year, the business posted $1.60 EPS. International Business Machines’s revenue for the quarter was up 9.5% on a year-over-year basis. Sell-side analysts expect that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a dividend of $1.69 per share. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 2.1%. International Business Machines’s dividend payout ratio (DPR) is 59.77%.

Hedge Funds Weigh In On International Business Machines

Hedge funds and other institutional investors have recently bought and sold shares of the company. Foster Group Inc. grew its stake in shares of International Business Machines by 1.3% in the 4th quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock valued at $742,000 after buying an additional 33 shares during the period. CVA Family Office LLC grew its stake in shares of International Business Machines by 1.4% in the 4th quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock valued at $708,000 after buying an additional 33 shares during the period. New Covenant Trust Company N.A. grew its stake in shares of International Business Machines by 3.8% in the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock valued at $264,000 after buying an additional 33 shares during the period. McGowan Group Asset Management Inc. grew its stake in shares of International Business Machines by 1.2% in the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock valued at $798,000 after buying an additional 33 shares during the period. Finally, Marco Investment Management LLC grew its stake in shares of International Business Machines by 0.3% in the 3rd quarter. Marco Investment Management LLC now owns 10,774 shares of the technology company’s stock valued at $3,040,000 after buying an additional 34 shares during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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.