International Business Machines (NYSE:IBM) Shares Up 1.2% – Time to Buy?

International Business Machines Corporation (NYSE:IBM) shares shot up 1.2% during trading on Friday . The company traded as high as $224.76 and last traded at $224.3940. Approximately 9,056,200 shares traded hands during mid-day trading, an increase of 10% from the average session volume of 8,244,686 shares. The stock had previously closed at $221.74.

International Business Machines News Summary

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

• Positive Sentiment: Quantum-computing milestones: IBM and research partners reported demonstrations of “quantum advantage,” including simulations and logical-circuit work that reportedly exceeded leading classical-computing methods. The developments could strengthen IBM’s long-term quantum commercialization story and support management’s goal of generating quantum-related revenue by 2028. IBM and Algorithmiq Demonstrate Quantum Advantage
• Positive Sentiment: Banking-platform collaboration: UniCredit, Accenture and IBM are working on a next-generation European banking platform. The project may create additional hybrid-cloud, AI and consulting opportunities for IBM, although its eventual financial contribution was not disclosed. UniCredit, Accenture and IBM Collaborate
• Positive Sentiment: AI and hybrid-cloud positioning: Recurring software revenue, Red Hat momentum and a growing AI-consulting backlog support IBM’s 2026 outlook. Its focus on security, governance, data control and trusted AI could appeal to enterprises that remain cautious about deploying generative AI. IBM Hybrid Cloud and AI Outlook
• Neutral Sentiment: Mixed second-quarter backdrop: IBM met the $2.93 consensus EPS estimate and revenue rose about 1% year over year, but revenue of $17.16 billion fell short of the $17.46 billion estimate. Deal timing and mainframe weakness remain constraints, while management’s enterprise-AI demand has yet to translate into consistently faster revenue growth. IBM Stock: Three Reasons Q2 Earnings
• Negative Sentiment: Valuation and leverage concerns: Analysts note that IBM’s pullback makes the stock more attractive, but modest growth, significant leverage and a still-full valuation prevent it from appearing clearly undervalued. Investors may therefore require stronger revenue acceleration before assigning the shares a higher multiple. Is IBM Stock Worth Buying After Its Pullback?
• Negative Sentiment: Investor-investigation announcements: Bleichmar Fonti & Auld and Pomerantz announced investigations related to IBM’s sharp stock decline. These announcements do not establish wrongdoing, but they add headline and potential litigation risk. Pomerantz IBM Investor Alert

Analysts Set New Price Targets

IBM has been the subject of several research reports. Argus decreased their target price on International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research note on Thursday, July 16th. KeyCorp cut shares of International Business Machines to a “sector weight” rating in a research report on Tuesday, June 23rd. HSBC set a $175.00 price target on shares of International Business Machines and gave the company a “reduce” rating in a report on Thursday, July 16th. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines in a research note on Thursday, July 23rd. Finally, DZ Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price on the stock in a report on Friday, April 24th. Fifteen equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $265.40.

International Business Machines Price Performance

The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a market cap of $211.41 billion, a price-to-earnings ratio of 19.91, a price-to-earnings-growth ratio of 2.22 and a beta of 0.68. The stock’s fifty day moving average price is $262.30 and its 200-day moving average price is $258.04.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting the consensus estimate of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.80 EPS. Equities research analysts predict that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

International Business Machines Announces Dividend

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

Institutional Trading of International Business Machines

A number of institutional investors have recently bought and sold shares of IBM. Zions Bancorporation National Association UT grew its stake in shares of International Business Machines by 3.8% in the 2nd quarter. Zions Bancorporation National Association UT now owns 2,838 shares of the technology company’s stock valued at $798,000 after buying an additional 105 shares in the last quarter. Aberdeen Group plc lifted its stake in International Business Machines by 8.4% in the second quarter. Aberdeen Group plc now owns 1,254,225 shares of the technology company’s stock valued at $352,701,000 after acquiring an additional 97,244 shares during the last quarter. New Republic Capital LLC lifted its stake in International Business Machines by 144.0% in the second quarter. New Republic Capital LLC now owns 6,163 shares of the technology company’s stock valued at $1,733,000 after acquiring an additional 3,637 shares during the last quarter. Avail Investment Partners LLC grew its position in International Business Machines by 25.8% in the second quarter. Avail Investment Partners LLC now owns 4,111 shares of the technology company’s stock worth $1,156,000 after acquiring an additional 844 shares in the last quarter. Finally, Calamos Wealth Management LLC increased its stake in shares of International Business Machines by 1.0% during the 2nd quarter. Calamos Wealth Management LLC now owns 8,319 shares of the technology company’s stock worth $2,339,000 after purchasing an additional 79 shares during the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

About International Business Machines

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.