International Business Machines (NYSE:IBM) Shares Up 2.6% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s share price rose 2.6% on Thursday. The stock traded as high as $234.27 and last traded at $225.5680. 8,873,495 shares traded hands during mid-day trading, an increase of 17% from the average session volume of 7,585,845 shares. The stock had previously closed at $219.93.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM introduced a self-hosted version of its Bob agentic software-development platform. Customers can run it on-premises, in private or sovereign clouds, and in air-gapped environments, helping address data sovereignty, security and regulatory requirements. The offering strengthens IBM’s hybrid-cloud and enterprise-AI strategy and could broaden adoption among highly regulated customers. IBM Introduces Self-Hosted Deployment for IBM Bob
• Positive Sentiment: Accenture’s strong earnings and record bookings provided a read-through for IBM’s consulting operations, suggesting that enterprise technology-services demand remains resilient despite concerns that AI could reduce traditional consulting work. The sector-wide optimism helped support IBM’s shares. Strength in Accenture’s Consulting Business Gives IBM Stock a Much-Needed Boost
• Positive Sentiment: Some investors view IBM as attractively valued following its decline, citing a relatively low earnings multiple and an approximately 3% dividend yield. This value argument may provide support, although it does not resolve questions about future growth. Is IBM Stock a Buy?
• Neutral Sentiment: IBM is scheduled to report third-quarter results later this month. Analysts reportedly expect high-single-digit earnings growth, making the upcoming release an important test of whether the company’s AI and consulting momentum is translating into improved financial performance. What You Need to Know Ahead of IBM’s Earnings Release
• Negative Sentiment: Hagens Berman announced an investigation into potential securities-law violations related to IBM’s July disclosure of disappointing second-quarter results. The investigation follows a reported one-day market-capitalization loss of more than $68 billion and could add legal and reputational uncertainty, although it is an allegation rather than a finding of wrongdoing. IBM Investigation Announcement

Wall Street Analyst Weigh In

IBM has been the subject of a number of recent analyst reports. Jefferies Financial Group dropped their price objective 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. Craig Hallum initiated coverage on shares of International Business Machines in a research report on Wednesday, August 19th. They set a “buy” rating on the stock. Morgan Stanley lowered their target price on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating on the stock in a report on Thursday, July 23rd. Argus cut their target price on shares of 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. Finally, Sanford C. Bernstein decreased their price target on shares of International Business Machines from $280.00 to $230.00 and set a “market perform” rating on the stock in a research note on Thursday, July 23rd. Eighteen analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $253.52.

International Business Machines Trading Up 2.6%

The company has a 50-day moving average of $231.72 and a 200 day moving average of $245.23. 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 company has a market cap of $212.51 billion, a PE ratio of 20.01, a price-to-earnings-growth ratio of 2.10 and a beta of 0.71.

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, meeting analysts’ consensus estimates of $2.93. The business had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The company’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the prior year, the business posted $2.80 earnings per share. Analysts predict that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were paid a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines’s payout ratio is presently 59.98%.

Insiders Place Their Bets

In other news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.27% of the stock is owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Several hedge funds have recently added to or reduced their stakes in IBM. BlackRock Inc. purchased a new position in International Business Machines during the 2nd quarter valued at $21,586,659,000. State Street Corp increased its stake in International Business Machines by 2.7% in the second quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock worth $15,760,430,000 after purchasing an additional 1,450,562 shares during the period. Capital World Investors lifted its position in shares of 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 purchasing an additional 4,976,756 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of International Business Machines by 7.0% during the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock valued at $3,893,669,000 after purchasing an additional 1,049,602 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in shares of International Business Machines during the second quarter valued at $2,606,782,000. 58.96% of the stock is currently owned by institutional investors.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.