International Business Machines Corporation (NYSE:IBM) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of International Business Machines Corporation (NYSE:IBM) have received a consensus recommendation of “Moderate Buy” from the twenty-eight ratings firms that are covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, eleven have assigned a hold recommendation and sixteen have given a buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $265.90.

Several brokerages have commented on IBM. Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a report on Tuesday, June 23rd. Weiss Ratings cut shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Jefferies Financial Group dropped their price objective on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Finally, Barclays cut their price objective on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating on the stock in a research report on Thursday, July 23rd.

International Business Machines News Roundup

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

• Positive Sentiment: IBM and Lockheed Martin announced a quantum innovation hub at ETH Zurich, supported by Switzerland’s defense-procurement offset program. The initiative will deploy Switzerland’s first IBM Quantum System Two at the Swiss National Supercomputing Centre, giving IBM a multi-year platform for quantum-computing research in areas such as sensing and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Positive Sentiment: IBM and NASA released an open-source Lunar Foundation Model trained on extensive lunar-observation data. The model reportedly improves identification of lunar features, including potential ice deposits and craters, highlighting IBM’s AI capabilities and government-research relationships, although the near-term revenue impact is likely limited. IBM and NASA Release Open-Source AI Model
• Positive Sentiment: Market commentary continues to identify IBM as an established-company route to AI and quantum exposure, supported by its hybrid-cloud, enterprise-software and consulting businesses. A Cleveland Clinic, RIKEN and IBM team was also named a finalist for the ACM Gordon Bell Prize for quantum-centric supercomputing research. IBM Team Advances to Gordon Bell Prize Finals
• Neutral Sentiment: A shareholder-rights law firm announced an investigation into IBM related to its previously previewed second-quarter results. Such notices are often solicitation-driven and do not establish wrongdoing, but they can add headline and legal-risk pressure. Law Firm Investigation Report
• Negative Sentiment: IBM’s latest quarterly results showed earnings in line with estimates but revenue below expectations, reinforcing concerns that growth is modest. Analysts also continue to view competing AI-cloud names as having stronger near-term growth and momentum.
• Negative Sentiment: Investors remain focused on IBM’s earlier AI-security investment and whether related partnerships will translate into durable software revenue. Those questions, combined with a premium valuation and broader-market weakness, appear to have outweighed the longer-term quantum and AI announcements. IBM AI Security Investment

Insider Activity at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.27% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines in the fourth quarter valued at approximately $25,000. Portus Wealth Advisors LLC acquired a new position in International Business Machines during the first quarter worth $26,000. Harborfront Financial Group LLC acquired a new position in International Business Machines during the second quarter worth $27,000. Cornerstone Financial Management LLC bought a new position in International Business Machines in the fourth quarter valued at $28,000. Finally, Hara Capital LLC bought a new position in International Business Machines in the second quarter valued at $28,000. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Stock Down 2.5%

NYSE:IBM opened at $234.06 on Friday. International Business Machines has a 1 year low of $199.19 and a 1 year high of $332.46. The stock has a 50-day moving average price of $237.79 and a two-hundred day moving average price of $246.38. The stock has a market cap of $220.51 billion, a price-to-earnings ratio of 20.77, a PEG ratio of 2.29 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 released its quarterly 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 return on equity of 35.65% and a net margin of 15.52%.The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter last year, the firm posted $2.80 earnings per share. International Business Machines’s revenue was up 1.1% compared to the same quarter last year. As a group, equities analysts expect that International Business Machines will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were paid a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

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.