International Business Machines’ (IBM) “Outperform” Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada reissued their outperform rating on shares of International Business Machines (NYSE:IBM) in a research note released on Tuesday morning,Benzinga reports. Royal Bank Of Canada currently has a $270.00 price objective on the technology company’s stock.

Other research analysts have also issued research reports about the stock. Barclays reduced their price objective on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating for the company in a research note on Thursday, July 23rd. Wolfe Research downgraded shares of International Business Machines to a “peer perform” rating in a research note on Tuesday, June 23rd. BMO Capital Markets cut their price target on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a report on Thursday, July 23rd. Weiss Ratings lowered shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, September 29th. Finally, Argus reduced their price target on International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a research report on Thursday, July 16th. Nineteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $254.96.

International Business Machines Trading Up 2.7%

Shares of NYSE IBM opened at $234.04 on Tuesday. International Business Machines has a 1-year low of $199.19 and a 1-year high of $332.46. The business has a fifty day moving average price of $232.08 and a 200 day moving average price of $243.66. The stock has a market capitalization of $220.50 billion, a P/E ratio of 18.97, a price-to-earnings-growth ratio of 2.17 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.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The firm’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.80 earnings per share. Equities research analysts expect that International Business Machines will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently declared 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. The ex-dividend date was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines’s dividend payout ratio is presently 59.98%.

Insider Activity

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the firm’s 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 completion of the transaction, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of International Business Machines during the second quarter worth about $21,586,659,000. State Street Corp increased its holdings in International Business Machines by 2.7% in the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock worth $15,760,430,000 after buying an additional 1,450,562 shares during the period. Bank of America Corp DE increased its holdings in International Business Machines by 7.0% in the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after buying an additional 1,049,602 shares during the period. Bank of New York Mellon Corp purchased a new position in International Business Machines during the 2nd quarter worth approximately $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in International Business Machines by 0.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock worth $2,143,245,000 after buying an additional 53,388 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

More International Business Machines News

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

• Positive Sentiment: Potential earnings beat: Bank of America expects IBM to modestly exceed third-quarter estimates, while maintaining its 2026 outlook. The bank reiterated a “buy” rating and $280 price target, citing higher-margin software growth, improving profitability and strong free cash flow. IBM poised for modest third-quarter beat, says Bank of America
• Positive Sentiment: Analyst support: Morgan Stanley raised its IBM price target from $190 to $238, although it retained an “equal weight” rating. Royal Bank of Canada also reaffirmed its “outperform” rating, providing additional support ahead of earnings.
• Positive Sentiment: Semiconductor research collaboration: IBM and Siemens are working together to advance IBM’s nanostack transistor architecture. Siemens will contribute electronic-design automation, process simulation and manufacturing expertise, potentially strengthening IBM’s long-term semiconductor and technology prospects. IBM and Siemens Collaborate on Research to Advance Nanostack Architecture
• Neutral Sentiment: AI governance demand: IBM reported that 80% of surveyed EMEA executives had escalated an AI-related incident to their board or C-suite. The findings highlight a growing need for AI governance, cybersecurity and compliance services, but also show that many organizations are not yet prepared for autonomous AI agents. IBM Study on AI Incidents and Governance
• Negative Sentiment: Dividend and balance-sheet concerns: IBM’s century-long record of annual dividend increases is being tested by token-sized raises, rising debt and concerns that shareholder payouts could compete with funding for AI investments. IBM Dividend and Debt Concerns
• Negative Sentiment: Cash-flow quality and execution risks: Analysts note that much of IBM’s first-half operating-cash-flow improvement came from movements in financing receivables rather than clearly sustainable growth. Investors also remain focused on competition, margin pressure and whether AI and hybrid-cloud expansion can justify IBM’s premium valuation.

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.