International Business Machines Corporation (NYSE:IBM) Receives Consensus Recommendation of “Moderate Buy” from Analysts

International Business Machines Corporation (NYSE:IBM) has earned an average rating of “Moderate Buy” from the twenty-seven brokerages that are covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation and fifteen have issued a buy recommendation on the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $265.40.

A number of research analysts have recently commented on IBM shares. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target for the company in a report on Friday, April 24th. JPMorgan Chase & Co. dropped their target price on shares of International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a research report on Friday, July 17th. HSBC set a $175.00 target price on shares of International Business Machines and gave the company a “reduce” rating in a research note on Thursday, July 16th. Stifel Nicolaus reduced 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 report on Monday, July 20th. Finally, Susquehanna decreased their price target on shares of International Business Machines from $303.00 to $225.00 and set a “neutral” rating on the stock in a research report on Friday, July 24th.

International Business Machines Price Performance

NYSE IBM opened at $234.79 on Monday. International Business Machines has a twelve month low of $199.19 and a twelve month 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 stock has a market capitalization of $221.20 billion, a PE ratio of 20.83, a P/E/G ratio of 2.30 and a beta of 0.70. The stock has a 50-day simple moving average of $251.38 and a 200 day simple moving average of $252.89.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting the consensus estimate 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 firm’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.80 EPS. Research analysts anticipate that International Business Machines will post 12.33 EPS for the current year.

International Business Machines Announces Dividend

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

Hedge Funds Weigh In On International Business Machines

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

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s strategic partnership with OpenAI will embed OpenAI models and tools, including GPT-5.6, into IBM Consulting’s enterprise AI platform. IBM also plans to establish a dedicated OpenAI Practice and train thousands of consultants and engineers, potentially strengthening its position in regulated industries such as finance, government, telecommunications and retail. IBM partners with OpenAI to bolster enterprise AI push
• Positive Sentiment: IBM’s $240 million, multi-year agreement with Together AI will build an NVIDIA-powered AI inference cluster on IBM Cloud. Strong anticipated demand could support growth in IBM’s cloud infrastructure and high-performance AI workloads. Can IBM’s Together AI Cloud Deal Boost Its Growth Prospects?
• Positive Sentiment: IBM-reported research indicates that 85% of organizations planned to increase security spending by May, up from 64% during the prior period, as companies respond to frontier-AI cyber threats. This could benefit IBM’s cybersecurity, consulting and AI automation businesses. Frontier AI Threats Drive Companies to Boost Security Budgets
• Neutral Sentiment: Some coverage characterizes IBM as a relatively attractive technology investment because of its steadier earnings outlook, valuation and dividend, while other commentary highlights longer-term opportunities in quantum computing. These factors may provide support but are unlikely to resolve near-term growth concerns. AST SpaceMobile vs. IBM: Which Tech Stock is the Better Buy Now?
• Negative Sentiment: IBM’s shares have declined even after the OpenAI announcement, suggesting investors want evidence that the alliance can accelerate sales and profits. The partnership’s costs, implementation timeline and ability to convert consulting demand into recurring revenue remain key uncertainties. IBM Stock Drops Despite Major OpenAI Partnership
• Negative Sentiment: Bleichmar Fonti & Auld LLP announced an investigation into potential securities fraud following IBM’s significant stock decline. The announcement is primarily an attorney solicitation and does not establish wrongdoing, but it adds headline and litigation risk. IBM securities fraud investigation reminder

About International Business Machines

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.