International Business Machines (NYSE:IBM) Shares Up 2.7% – Should You Buy?

International Business Machines Corporation (NYSE:IBM) shares were up 2.7% during mid-day trading on Tuesday . The stock traded as high as $236.59 and last traded at $229.3440. Approximately 13,099,690 shares were traded during mid-day trading, an increase of 121% from the average daily volume of 5,940,713 shares. The stock had previously closed at $223.35.

Key International Business Machines News

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

• Positive Sentiment: Wedbush says the selloff is overdone and frames the pullback as a buying opportunity, arguing investors are misreading AI disruption risks to IBM’s legacy business. IBM selloff overdone and represents a buying opportunity, says Wedbush
• Positive Sentiment: Evercore ISI and other analysts recommend buying the dip, viewing the pullback as an attractive entry after the panic-driven decline. Should You Buy the Dip in Oversold IBM Stock Today?
• Positive Sentiment: Analysts defending IBM point to the resilience of its mainframe business and argue AI won’t quickly dismantle that revenue stream, helping the stock bounce. IBM’s stock bounces. Analysts say the company won’t be so easily dismantled by AI.
• Positive Sentiment: Broader software names rallied after Anthropic announced partnerships and new tools, which helped stabilize the sector and supported IBM’s recovery into the session. Software stocks rebound as Anthropic announces new partnerships
• Neutral Sentiment: Some analysts explicitly upgraded IBM (saying the Anthropic threat is overblown), while others note the situation merits monitoring—so consensus leans constructive but not unanimous. IBM: Why Anthropic’s AI Threat Is Overblown, Upgrading To Buy
• Neutral Sentiment: Technical and volatility signals show elevated trading and unusually high volume around the selloff, meaning the stock could see larger intraday swings as investors digest the news. Are the Best Days Over for IBM Stock? What Price Volatility Tells Us and How You Can Trade IBM Now.
• Negative Sentiment: The immediate catalyst was Anthropic’s Claude Code claiming it can automate/accelerate COBOL modernization—a credible technical threat to parts of IBM’s legacy services—triggering a steep one-day drop and sectorwide selling pressure. IBM Shares Plummet 13%—Worst Day Since 2000—After Anthropic Launches Programming AI Tool

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on IBM. Jefferies Financial Group restated a “buy” rating on shares of International Business Machines in a research note on Monday. BMO Capital Markets reiterated a “market perform” rating and issued a $350.00 target price on shares of International Business Machines in a research report on Thursday, January 29th. Argus set a $360.00 price target on International Business Machines in a report on Friday, January 30th. DZ Bank upgraded International Business Machines to a “hold” rating in a research note on Wednesday, February 11th. Finally, Morgan Stanley set a $304.00 target price on shares of International Business Machines 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, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, International Business Machines has an average rating of “Moderate Buy” and a consensus price target of $330.07.

International Business Machines Trading Up 2.7%

The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The firm has a market capitalization of $214.38 billion, a price-to-earnings ratio of 20.57, a price-to-earnings-growth ratio of 2.58 and a beta of 0.69. The firm’s 50 day moving average is $292.35 and its 200 day moving average is $284.26.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, beating analysts’ consensus estimates of $4.33 by $0.19. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business had revenue of $19.69 billion during the quarter, compared to analyst estimates of $19.23 billion. During the same quarter last year, the company posted $3.92 EPS. International Business Machines’s revenue for the quarter was up 12.2% on a year-over-year basis. Equities analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be paid a dividend of $1.68 per share. This represents a $6.72 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, February 10th. International Business Machines’s payout ratio is 60.27%.

Insider Activity

In related news, Director David N. Farr purchased 1,000 shares of the firm’s stock in a transaction that occurred on Friday, January 30th. The stock was acquired at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the acquisition, the director owned 9,258 shares in the company, valued at $2,814,432. This trade represents a 12.11% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Several institutional investors and hedge funds have recently modified their holdings of IBM. Family CFO Inc acquired a new stake in shares of International Business Machines during the 4th quarter valued at about $25,000. Basepoint Wealth LLC acquired a new position in International Business Machines in the fourth quarter worth approximately $25,000. Winnow Wealth LLC bought a new position in International Business Machines during the second quarter valued at approximately $27,000. Mountain Hill Investment Partners Corp. acquired a new stake in International Business Machines in the third quarter valued at approximately $28,000. Finally, Joseph Group Capital Management bought a new stake in International Business Machines in the fourth quarter worth approximately $28,000. 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.