International Business Machines (NYSE:IBM) Trading Up 3.8% – Should You Buy?

International Business Machines Corporation (NYSE:IBM) was up 3.8% during trading on Thursday . The company traded as high as $240.81 and last traded at $238.55. 5,485,696 shares were traded during trading, a decline of 31% from the average session volume of 7,921,721 shares. The stock had previously closed at $229.87.

More International Business Machines News

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

• Positive Sentiment: IBM and Arm Holdings expanded their collaboration around a dual-architecture IBM Z mainframe processor capable of running IBM and Arm instructions on the same core. The development supports IBM’s infrastructure strategy and helped lift investor interest in both companies. IBM dual-architecture mainframe article
• Positive Sentiment: Investors are reassessing IBM’s enterprise-AI opportunity following its partnership to bring OpenAI models and products to IBM Consulting Advantage. The company continues to forecast 4%–5% constant-currency revenue growth in 2026 and approximately $1 billion of year-over-year free-cash-flow growth, supporting the longer-term investment case.
• Positive Sentiment: IBM completed its acquisition of HRL Laboratories, adding capabilities in quantum computing, quantum sensing, advanced communications, materials and manufacturing. The deal could accelerate IBM’s quantum roadmap and broaden its advanced-technology research base. IBM HRL Laboratories acquisition article
• Positive Sentiment: Institutional positioning was broadly supportive in recent filings, with major investors including JPMorgan, Wellington Management and FMR reporting additional IBM shares. Analysts’ reported median price target of $315 also indicates potential upside from recent trading levels, though targets are not guarantees.
• Neutral Sentiment: IBM is promoting AI-powered US Open fan experiences and publishing research on AI’s impact on sports fandom. These efforts reinforce IBM’s marketing and commercial-AI visibility but are unlikely to materially affect near-term revenue. IBM US Open fan experience article
• Negative Sentiment: Some analysts questioned the commercial significance and timing of IBM’s recent quantum milestone, limiting enthusiasm for the announcement. IBM also faces an announced securities-fraud investigation, which adds headline and litigation risk, although no wrongdoing has been established. IBM quantum milestone analyst reaction

Analyst Ratings Changes

A number of research firms have commented on IBM. Wedbush set a $350.00 price objective on International Business Machines in a research note on Tuesday, June 2nd. Roth Capital restated a “buy” rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Bank of America lifted their price target on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a report on Monday, July 6th. Susquehanna decreased their price objective on shares of International Business Machines from $303.00 to $225.00 and set a “neutral” rating on the stock in a report on Friday, July 24th. Finally, Oppenheimer cut shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Sixteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, International Business Machines presently has a consensus rating of “Moderate Buy” and an average price target of $265.40.

International Business Machines Stock Up 3.8%

The firm’s 50 day moving average price is $245.07 and its 200-day moving average price is $249.17. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The company has a market cap of $224.75 billion, a P/E ratio of 21.17, a price-to-earnings-growth ratio of 2.30 and a beta of 0.70.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same period in the prior year, the business 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 research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

Hedge Funds Weigh In On International Business Machines

Several hedge funds have recently added to or reduced their stakes in IBM. Basepoint Wealth LLC bought a new stake in International Business Machines in the fourth quarter valued at approximately $25,000. Joseph Group Capital Management bought a new position in shares of International Business Machines during the fourth quarter worth $28,000. Cornerstone Financial Management LLC acquired a new position in shares of International Business Machines in the 4th quarter valued at $28,000. Harborfront Financial Group LLC bought a new stake in shares of International Business Machines in the 2nd quarter valued at $27,000. Finally, Hara Capital LLC bought a new stake in shares of International Business Machines in the 2nd quarter valued at $28,000. 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.