International Business Machines (NYSE:IBM) Shares Up 2.4% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s share price rose 2.4% on Monday . The company traded as high as $251.37 and last traded at $249.0920. 6,452,899 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 7,710,577 shares. The stock had previously closed at $243.29.

International Business Machines News Roundup

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

• Positive Sentiment: IBM subsidiary Anderon finalized a $1 billion CHIPS Act award from the U.S. Department of Commerce to accelerate research and development for a U.S.-based pure-play quantum foundry. The funding should support quantum-wafer technology, manufacturing capacity and broader access to IBM’s quantum platform. Anderon finalizes $1 billion CHIPS award
• Positive Sentiment: IBM’s AI technology is being deployed by a Turkish credit bureau to process approximately 23 million transactions daily. While IBM did not disclose the contract value, the production-scale deployment offers evidence that its AI products are being used in high-volume enterprise workloads. IBM AI deal handles 23 million transactions daily
• Positive Sentiment: Analysts cited in recent coverage set an average IBM price target of $265.90, above the referenced trading level. Technical commentary also points to a possible breakout above the $239 resistance area, supporting near-term bullish sentiment. Analysts set IBM price target
• Neutral Sentiment: IBM is highlighted in telemedicine and European green-IT market reports, but these are industry studies rather than new contracts or revenue guidance, so their immediate effect on valuation is likely limited. Telemedicine market report
• Neutral Sentiment: NVIDIA’s CUDA-Q Logical platform benchmarked IBM quantum hardware alongside other systems, reinforcing IBM’s position in hybrid quantum-classical computing, though the announcement primarily benefits NVIDIA and does not create immediate revenue for IBM. NVIDIA quantum computing platform
• Negative Sentiment: Recent disclosure of an IBM executive selling 25,000 shares may weigh modestly on sentiment, although a single insider sale does not necessarily indicate deteriorating fundamentals.
• Negative Sentiment: Reports connecting IBM to broader consulting-sector settlements involving alleged discrimination claims create a potential reputational and legal overhang, though the financial impact on IBM was not specified.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on IBM shares. Piper Sandler raised International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Needham & Company LLC initiated coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating on the stock. Jefferies Financial Group decreased their target price on International Business Machines from $320.00 to $260.00 and set a “buy” rating for the company in a research note on Tuesday, July 21st. Wall Street Zen downgraded International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Argus dropped their price target on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a research note on Thursday, July 16th. Seventeen investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and an average target price of $265.16.

International Business Machines Stock Down 0.3%

The business’s fifty day moving average price is $234.72 and its 200 day moving average price is $246.74. The firm has a market capitalization of $234.01 billion, a price-to-earnings ratio of 22.04, a PEG ratio of 2.37 and a beta of 0.71. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63.

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

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were issued a dividend of $1.69 per share. The ex-dividend date of this dividend was Monday, August 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 (DPR) is currently 59.98%.

Insider Buying and Selling

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the 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 sale, the senior vice president directly owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.27% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

Several institutional investors have recently bought and sold shares of the company. Assetmark Inc. boosted its stake in shares of International Business Machines by 24.8% during the 1st quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock worth $15,624,000 after acquiring an additional 12,791 shares in the last quarter. Rice Partnership LLC acquired a new stake in shares of International Business Machines during the fourth quarter worth $3,317,000. Sage Investment Advisers LLC acquired a new stake in shares of International Business Machines during the fourth quarter worth $4,101,000. Flputnam Investment Management Co. purchased a new stake in shares of International Business Machines during the second quarter valued at $15,237,000. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund acquired a new position in shares of International Business Machines in the 4th quarter valued at $10,039,000. 58.96% of the stock is owned by institutional investors and hedge funds.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.