Stock Traders Buy High Volume of Call Options on International Business Machines (NYSE:IBM)

International Business Machines Corporation (NYSE:IBM) was the target of some unusual options trading activity on Friday. Traders acquired 108,601 call options on the company. This is an increase of approximately 35% compared to the average volume of 80,721 call options.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Citigroup lowered its price target to $245 from $255 but kept a buy rating, signaling continued upside potential despite the recent selloff. Citigroup price target update via Benzinga
• Positive Sentiment: IBM announced a deal to acquire HRL Laboratories to strengthen its quantum computing push, reinforcing its long-term growth narrative in advanced technologies. IBM acquires HRL Laboratories
• Positive Sentiment: Despite the weak report, IBM declared a quarterly dividend of $1.69 per share, which may support income-focused investors. IBM second-quarter results release
• Neutral Sentiment: Social-media and analyst reactions to Q2 earnings were mixed, with some saying software strength and stable cash flow could offset weakness in infrastructure, while others questioned whether consulting momentum will improve later in the year. Quiver Quant earnings reaction summary
• Neutral Sentiment: IBM’s Q2 revenue grew only modestly year over year, and while earnings matched estimates, the company’s guidance reset suggests investors are waiting for proof that second-half demand will recover. IBM earnings snapshot
• Negative Sentiment: IBM cut its 2026 constant-currency revenue growth outlook to 4%–5% from above 5%, citing delayed software deals and weaker mainframe sales, which is the biggest reason the stock is being sold off. IBM cuts annual revenue growth forecast
• Negative Sentiment: Q2 revenue of about $17.16 billion missed estimates, and the mainframe business was notably weak, adding to concerns that enterprise customers are shifting budgets toward AI-related hardware instead of IBM’s legacy systems. IBM Q2 results and strategy coverage
• Negative Sentiment: Law firms have launched securities-fraud investigations tied to the post-earnings stock drop, adding an overhang that could keep sentiment cautious in the near term. IBM fraud investigation notice

Analysts Set New Price Targets

A number of research firms recently issued reports on IBM. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $270.00 price target on shares of International Business Machines in a report on Tuesday. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines in a research report on Thursday. Barclays dropped their target price on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating for the company in a research note on Thursday. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research note on Thursday, July 16th. Finally, Robert W. Baird initiated coverage on shares of International Business Machines in a report on Tuesday. They issued a “neutral” rating and a $230.00 price target for the company. Fifteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $265.40.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank bought a new stake in shares of International Business Machines during the 4th quarter worth approximately $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. Corient Private Wealth LLC lifted its stake in International Business Machines by 359.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company’s stock valued at $561,814,000 after acquiring an additional 1,484,026 shares during the last quarter. Finally, Vanguard Group Inc. grew its position in shares of International Business Machines by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock valued at $28,796,390,000 after acquiring an additional 1,439,824 shares during the period. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Trading Up 3.6%

IBM stock traded up $7.50 during midday trading on Friday, reaching $214.16. The stock had a trading volume of 10,505,984 shares, compared to its average volume of 8,203,974. The business has a fifty day simple moving average of $263.03 and a two-hundred day simple moving average of $260.82. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The firm has a market cap of $201.28 billion, a price-to-earnings ratio of 19.00, a PEG ratio of 2.23 and a beta of 0.68. International Business Machines has a twelve month low of $199.19 and a twelve month high of $332.46.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 36.58%. The firm had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the business earned $2.80 EPS. The business’s quarterly revenue was up 1.1% compared to the same quarter last year. As a group, research analysts expect that International Business Machines will post 12.15 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. The ex-dividend date is Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 3.2%. International Business Machines’s payout ratio is currently 59.77%.

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.