International Business Machines (NYSE:IBM) Stock Price Up 12.5% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM) shot up 12.5% on Thursday . The stock traded as high as $253.63 and last traded at $253.1360. 25,286,827 shares traded hands during trading, an increase of 310% from the average session volume of 6,172,559 shares. The stock had previously closed at $225.00.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM and the U.S. Commerce Department announced a plan to launch America’s first purpose-built quantum foundry, with IBM set to receive the largest share of federal support and contribute matching capital. IBM and U.S. Department of Commerce Announce America’s First Purpose-Built Quantum Foundry, Supported by Proposed $1 Billion CHIPS Award
• Positive Sentiment: Analysts and media reports say the quantum funding package is a major new catalyst for IBM, helping drive strong share-price momentum and lifting sentiment around the stock’s long-term growth prospects. IBM shares extend rally as Wedbush calls US quantum investment a “new catalyst”
• Positive Sentiment: IBM’s push into quantum computing and related hot tech segments is being viewed as evidence the company is expanding beyond legacy businesses into higher-growth opportunities. Why IBM Stock Was Rocking it This Week
• Neutral Sentiment: Some coverage highlights that IBM’s valuation, debt load, and execution risk will matter as the company commits capital to the quantum foundry project. IBM’s US$1b Anderon Quantum Foundry Puts Valuation And Debt In Focus

Wall Street Analyst Weigh In

IBM has been the subject of a number of recent research reports. JPMorgan Chase & Co. dropped their target price on International Business Machines from $317.00 to $283.00 and set a “neutral” rating for the company in a report on Wednesday, March 18th. Evercore boosted their price objective on shares of International Business Machines from $330.00 to $345.00 and gave the company an “outperform” rating in a research report on Thursday, January 29th. Jefferies Financial Group lowered their target price on shares of International Business Machines from $370.00 to $320.00 and set a “buy” rating for the company in a report on Monday, April 20th. Weiss Ratings downgraded shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday. Finally, Morgan Stanley boosted their target price on International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $294.41.

International Business Machines Stock Up 0.4%

The company has a market cap of $238.62 billion, a P/E ratio of 22.45, a price-to-earnings-growth ratio of 2.62 and a beta of 0.58. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The business’s fifty day moving average is $238.70 and its two-hundred day moving average is $272.44.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.60 earnings per share. Equities analysts predict that International Business Machines Corporation will post 12.4 EPS for the current year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a $1.69 dividend. The ex-dividend date is Friday, May 8th. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. International Business Machines’s dividend payout ratio is presently 59.77%.

Insider Transactions at International Business Machines

In other International Business Machines news, Director Michael Miebach bought 434 shares of the business’s stock in a transaction on Wednesday, February 25th. The shares were acquired at an average price of $233.33 per share, with a total value of $101,265.22. Following the transaction, the director owned 434 shares of the company’s stock, valued at approximately $101,265.22. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently bought and sold shares of IBM. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its stake in International Business Machines by 424.6% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock valued at $77,234,000 after acquiring an additional 211,040 shares during the period. GLOBALT Investments LLC GA increased its stake in shares of International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock worth $5,417,000 after acquiring an additional 2,930 shares during the period. Waverton Investment Management Ltd raised its holdings in shares of International Business Machines by 3.3% during the third quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company’s stock worth $280,439,000 after purchasing an additional 32,072 shares during the last quarter. Newbridge Financial Services Group Inc. raised its holdings in shares of International Business Machines by 30.0% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after purchasing an additional 3,029 shares during the last quarter. Finally, NEOS Investment Management LLC lifted its position in International Business Machines by 51.7% during the third quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company’s stock valued at $32,278,000 after purchasing an additional 38,973 shares during the period. Institutional investors own 58.96% of the company’s stock.

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.