Morgan Stanley Cuts International Business Machines (NYSE:IBM) Price Target to $247.00

International Business Machines (NYSE:IBM) had its price objective cut by Morgan Stanley from $304.00 to $247.00 in a report issued on Wednesday,Benzinga reports. They currently have an equal weight rating on the technology company’s stock.

Several other brokerages have also weighed in on IBM. Wedbush reaffirmed an “outperform” rating and set a $340.00 price objective on shares of International Business Machines in a research report on Tuesday. Weiss Ratings reaffirmed a “buy (b)” rating on shares of International Business Machines in a research note on Thursday, January 22nd. Wall Street Zen downgraded shares of International Business Machines from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Evercore raised their target price on International Business Machines from $330.00 to $345.00 and gave the company an “outperform” rating in a report on Thursday, January 29th. Finally, JPMorgan Chase & Co. upped their price target on International Business Machines from $312.00 to $317.00 and gave the stock a “neutral” rating in a research note on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, International Business Machines has an average rating of “Moderate Buy” and an average price target of $320.87.

International Business Machines Price Performance

IBM opened at $239.78 on Wednesday. The stock has a fifty day moving average price of $287.17 and a 200 day moving average price of $283.58. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 1.67. International Business Machines has a 1 year low of $214.50 and a 1 year high of $324.90. The stock has a market cap of $224.92 billion, a price-to-earnings ratio of 21.51, a PEG ratio of 2.43 and a beta of 0.69.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, topping the consensus estimate of $4.33 by $0.19. The company had revenue of $19.69 billion for the quarter, compared to analyst estimates of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business’s revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.92 EPS. Analysts forecast that International Business Machines will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be paid a dividend of $1.68 per share. The ex-dividend date is Tuesday, February 10th. This represents a $6.72 annualized dividend and a yield of 2.8%. International Business Machines’s dividend payout ratio is presently 60.27%.

Insider Activity at International Business Machines

In other International Business Machines news, Director Michael Miebach purchased 434 shares of the business’s stock in a transaction dated Wednesday, February 25th. The stock was bought at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the acquisition, the director directly owned 434 shares in the company, valued at $101,265.22. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David N. Farr acquired 1,000 shares of International Business Machines stock in a transaction dated Friday, January 30th. The stock was acquired at an average cost of $304.00 per share, with a total value of $304,000.00. Following the completion of the transaction, the director directly owned 9,258 shares of the company’s stock, valued at $2,814,432. This trade represents a 12.11% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 1,484 shares of company stock worth $417,157. Company insiders own 0.18% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Norges Bank bought a new position in International Business Machines in the fourth quarter worth $2,446,429,000. Capital World Investors increased its holdings in International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after buying an additional 4,976,756 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in International Business Machines by 83.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company’s stock worth $1,663,847,000 after acquiring an additional 2,553,552 shares in the last quarter. Vanguard Group Inc. grew its position in shares of International Business Machines by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company’s stock valued at $28,019,274,000 after acquiring an additional 1,913,708 shares during the period. Finally, Laurel Wealth Advisors LLC lifted its position in shares of International Business Machines by 27,928.2% during the second quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company’s stock valued at $561,001,000 after purchasing an additional 1,896,326 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines News Summary

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

• Positive Sentiment: UBS upgraded IBM (from Sell to Neutral), which helped spark buying interest and provided a near‑term catalyst by arguing the recent selloff improved the stock’s risk/reward. UBS upgrades International Business Machines (IBM)
• Positive Sentiment: IBM won a government/defense-related contract (up to ~$112M) to modernize commissary pricing systems — a concrete services booking that supports revenue visibility in consulting/integration work. Can IBM’s New Defense Contract Win Boost Top-Line Growth?
• Positive Sentiment: Company insiders (directors) made small share purchases, which investors often view as a vote of confidence after recent price weakness. International Business Machines (NYSE:IBM) Director Michelle Howard Buys 50 Shares
• Positive Sentiment: Several analysts and deep-dive pieces argue the earlier AI-driven selloff was overdone given IBM’s solid Q4 results, cash flow and strategic positioning in hybrid cloud/AI — supporting a recovery narrative. IBM’s Steep Drop on AI Fears May Be an Overreaction
• Neutral Sentiment: Morgan Stanley trimmed its price target to $247 and moved to an “equal weight” stance — this tempers upside expectations and can cap near‑term momentum without being a full downgrade. Morgan Stanley Lowers International Business Machines (NYSE:IBM) Price Target to $247.00
• Neutral Sentiment: IBM’s security research (2026 X‑Force Threat Intelligence Index) highlights rising ransomware and cyber threats — a mixed signal: higher market risk overall but potential tailwinds for IBM’s security services. Ransomware Surges 49% as AI Makes Cyberattacks Faster and Easier, IBM Says
• Negative Sentiment: Anthropic’s new COBOL/legacy modernization tools (Claude Code) triggered the earlier steep selloff amid fears these AI tools could erode IBM’s services revenue from legacy modernization — this remains the primary near‑term downside risk. IBM Is Just AI’s Latest Victim
• Negative Sentiment: High‑profile commentary (e.g., Jim Cramer) highlighted the abrupt drop after Anthropic’s announcement, amplifying short‑term fear and volatility even though some analysts call the reaction overblown. Jim Cramer on International Business Machines

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.