International Business Machines (NYSE:IBM) Stock Price Up 2.6% – Still a Buy?

International Business Machines Corporation (NYSE:IBM) was up 2.6% during mid-day trading on Thursday. The stock traded as high as $234.27 and last traded at $225.5680. Approximately 8,873,495 shares changed hands during trading, an increase of 17% from the average session volume of 7,585,845 shares. The stock had previously closed at $219.93.

Key International Business Machines News

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

• Positive Sentiment: Accenture’s strong results improved confidence in IBM’s consulting business. Record bookings and resilient consulting demand at Accenture helped ease fears that generative AI will reduce technology-services spending, lifting sentiment across the sector and benefiting IBM. Strength in Accenture’s Consulting Business Gives IBM Stock a Much-Needed Boost
• Positive Sentiment: Self-hosted IBM Bob expands the company’s AI opportunity. IBM now allows customers to run its agentic software-development platform on-premises, in private or sovereign clouds, and in air-gapped environments. The offering targets regulated enterprises that need tighter control over sensitive code, data, and workflows, reinforcing IBM’s hybrid-cloud and AI-sovereignty strategy. IBM Introduces Self-Hosted Deployment for IBM Bob
• Positive Sentiment: IBM elected private-equity executive Frank Baker to its board. The appointment could add investment and corporate-governance expertise as IBM seeks to commercialize AI and digital-infrastructure products. IBM Elects Frank Baker to its Board of Directors
• Neutral Sentiment: IBM is positioned in growing technology markets. Articles highlight IBM’s quantum-computing initiatives and exposure to expanding secure-file-transfer and smart-manufacturing markets, although the near-term revenue impact is uncertain. Quantum Computing Is Having a Moment
• Negative Sentiment: Weak IBM Z performance remains the central risk. A sharp reaction to disappointing second-quarter results triggered a major market-value loss and renewed questions about IBM’s growth outlook. A shareholder-rights law firm is investigating whether prior disclosures violated securities laws, adding headline and litigation risk. IBM Z Shortfall Triggers Investigation
• Negative Sentiment: Investors remain focused on the next earnings report. Analysts expect third-quarter bottom-line growth, but the company must demonstrate that the Z weakness is contained and that AI and consulting momentum can translate into durable revenue and cash-flow growth. What You Need to Know Ahead of IBM’s Earnings Release

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Evercore decreased their price target on shares of International Business Machines from $310.00 to $250.00 and set an “outperform” rating for the company in a research note on Thursday, July 16th. Daiwa Securities Group cut their price objective on shares of International Business Machines from $247.00 to $217.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 29th. BMO Capital Markets reduced their target price on International Business Machines from $270.00 to $230.00 and set a “market perform” rating for the company in a research note on Thursday, July 23rd. Citigroup decreased their target price on International Business Machines from $255.00 to $245.00 and set a “buy” rating for the company in a research report on Friday, July 24th. Finally, Barclays dropped their price target on International Business Machines from $288.00 to $262.00 and set an “overweight” rating on the stock in a research note on Thursday, July 23rd. Eighteen investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $253.52.

International Business Machines Price Performance

The stock has a market capitalization of $209.67 billion, a price-to-earnings ratio of 19.75, a PEG ratio of 2.15 and a beta of 0.73. The business’s fifty day moving average price is $232.27 and its 200-day moving average price is $244.92. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the previous year, the firm posted $2.80 earnings per share. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. On average, research analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 3.0%. International Business Machines’s dividend payout ratio is 59.98%.

Insider Buying and Selling at International Business Machines

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 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 at this link. 0.27% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines during the first quarter valued at about $26,000. Harborfront Financial Group LLC bought a new stake in International Business Machines in the 2nd quarter worth about $27,000. Cornerstone Financial Management LLC bought a new stake in International Business Machines in the 4th quarter worth about $28,000. Hara Capital LLC purchased a new stake in International Business Machines in the 2nd quarter valued at about $28,000. Finally, Bare Financial Services Inc lifted its position 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 buying an additional 55 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.