International Business Machines Corporation (IBM) – What Are Brokerages Thinking About This Stock?

Shares of International Business Machines Corporation (NYSE:IBM) have earned a consensus rating of “Hold” from the thirty-three analysts that are presently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and eighteen have assigned a buy rating to the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $252.96.

Several brokerages have recently issued reports on IBM. Jefferies Financial Group lowered their price target on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Stifel Nicolaus cut their price objective on International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a report on Monday, July 20th. Sanford C. Bernstein cut their price objective on International Business Machines from $280.00 to $230.00 and set a “market perform” rating on the stock in a report on Thursday, July 23rd. Oppenheimer lowered International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Finally, Citic Securities upped their target price on International Business Machines from $294.00 to $297.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th.

International Business Machines Price Performance

IBM stock opened at $226.91 on Tuesday. The stock has a market cap of $213.78 billion, a price-to-earnings ratio of 20.13, a P/E/G ratio of 2.16 and a beta of 0.73. 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 50 day simple moving average of $232.29 and a 200 day simple moving average of $243.97. International Business Machines has a 1 year low of $199.19 and a 1 year high of $332.46.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter last year, the business posted $2.80 earnings per share. Research analysts anticipate that International Business Machines will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

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

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM advanced to Stage C of DARPA’s Quantum Benchmarking Initiative, putting its hardware and architecture through independent verification. The company is targeting a fault-tolerant quantum computer by 2029, giving investors a potential long-term growth catalyst and external validation of its technology roadmap. IBM Wins DARPA’s Quantum Stamp of Approval
• Positive Sentiment: IBM launched Ready for SAP Solutions, a consulting offering designed to help midsize and fast-growing companies modernize SAP cloud ERP systems using AI, integrated data and automation. The initiative could support consulting demand and strengthen IBM’s relationship with SAP customers. IBM and SAP ERP modernization partnership
• Positive Sentiment: IBM Consulting’s second-quarter profit rose 15.1% to $647 million despite nearly flat revenue, indicating improved delivery economics and margin expansion. Separately, an IBM security partnership helped keep the cybersecurity sector in focus, potentially highlighting demand for IBM’s security capabilities. IBM Consulting profit growth
• Neutral Sentiment: Truist Securities initiated coverage with a Hold rating and a $240 price target. The firm sees IBM’s long-term enterprise-computing position positively but said the timing of AI-driven demand and near-term execution remain uncertain. Truist starts IBM at Hold
• Negative Sentiment: IBM’s mainframe revenue reportedly fell 42% in fiscal second quarter, while distributed infrastructure rose 37%; total revenue increased only 1% to approximately $17.2 billion. The contrast underscores pressure on a legacy business and raises questions about the durability of IBM’s growth outlook. IBM mainframe revenue decline
• Negative Sentiment: Analysts continue to cite IBM’s second-quarter execution shortfall, including large deals that closed later than expected. That caution is limiting enthusiasm despite the stock’s lower valuation and the company’s longer-term AI and quantum opportunities. IBM Stock Looks Cheap

Insider Buying and Selling 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 transaction of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC acquired a new position in shares of International Business Machines during the fourth quarter worth $28,000. Harborfront Financial Group LLC bought a new stake in shares of International Business Machines in the second quarter worth $27,000. Hara Capital LLC bought a new stake in shares of International Business Machines in the second quarter worth $28,000. Bare Financial Services Inc increased its holdings in International Business Machines by 114.6% in the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock valued at $29,000 after purchasing an additional 55 shares during the period. Finally, Portus Wealth Advisors LLC acquired a new stake in International Business Machines in the first quarter valued at $26,000. Institutional investors own 58.96% of the company’s stock.

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.