International Business Machines (NYSE:IBM) Price Target Raised to $260.00

International Business Machines (NYSE:IBM) had its price target increased by Stifel Nicolaus from $235.00 to $260.00 in a research note published on Thursday, MarketBeat Ratings reports. The brokerage currently has a buy rating on the technology company’s stock.

Other research analysts also recently issued research reports about the company. Barclays lifted their price objective on International Business Machines from $262.00 to $277.00 and gave the stock an “overweight” rating in a report on Thursday. JPMorgan Chase & Co. dropped their target price on International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Daiwa Securities Group reduced their price target on International Business Machines from $247.00 to $217.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 29th. Wall Street Zen lowered International Business Machines from a “hold” rating to a “sell” rating in a research report on Saturday, September 12th. Finally, Robert W. Baird lifted their price target on International Business Machines from $230.00 to $260.00 and gave the stock a “neutral” rating in a research note on Thursday. Twenty investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, International Business Machines presently has a consensus rating of “Moderate Buy” and a consensus target price of $266.12.

International Business Machines Price Performance

Shares of NYSE:IBM opened at $253.69 on Thursday. The stock has a market cap of $239.01 billion, a PE ratio of 21.63, a PEG ratio of 2.43 and a beta of 0.73. The company’s fifty day moving average is $233.06 and its 200 day moving average is $243.70. International Business Machines has a 52 week low of $199.19 and a 52 week high of $332.46. The company has a quick ratio of 0.74, a current ratio of 0.85 and a debt-to-equity ratio of 1.57.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.10. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The business had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. During the same period in the previous year, the firm posted $2.65 earnings per share. The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. Research analysts anticipate that International Business Machines will post 12.41 earnings per share for the current year.

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be given a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. International Business Machines’s payout ratio is presently 57.63%.

Insider Activity at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This represents 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 this hyperlink. Company insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of IBM. Portus Wealth Advisors LLC purchased a new position in shares of International Business Machines during the first quarter valued at approximately $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines during the second quarter valued at approximately $27,000. Hara Capital LLC bought a new position in shares of International Business Machines during the second quarter valued at approximately $28,000. Bare Financial Services Inc lifted its stake 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 worth $29,000 after acquiring an additional 55 shares during the period. Finally, Caitlin John LLC purchased a new stake in International Business Machines in the second quarter worth $35,000. Hedge funds and other institutional investors own 58.96% of the company’s stock.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM reported third-quarter revenue of $17.1 billion, up 4.7% year over year, while adjusted EPS of $2.95 exceeded analyst expectations. Software growth accelerated to 9% at constant currency, infrastructure demand improved, and operating pretax margins expanded by 70 basis points. IBM Beats Q3 Earnings Estimates on Software, Infrastructure Growth
• Positive Sentiment: Management raised its full-year free-cash-flow outlook, supported by stronger software performance, Red Hat demand and enterprise AI activity. Transaction-processing revenue also rose 10%, suggesting improving demand in key recurring-revenue businesses. IBM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts raised their earnings estimates or price targets following the results. Erste Group increased its FY2027 EPS forecast to $13.40 from $13.13, while JPMorgan, RBC and Stifel reiterated positive ratings and lifted targets. IBM Analyst Estimates and Ratings
• Neutral Sentiment: IBM’s updated FY2026 revenue guidance of $70.2 billion to $70.9 billion broadly brackets the $70.4 billion consensus estimate. The outlook was not meaningfully raised, leaving investors focused on whether the software rebound can continue.
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, or $6.76 annualized, reinforcing its appeal to income-oriented investors. A separate dividend-stock article highlighted IBM’s decades-long record of payout increases. IBM Declares $1.69 Dividend
• Negative Sentiment: Investors remain concerned that roughly half of the software growth benefited from the Confluent acquisition and that management’s unchanged revenue outlook implies slower growth later in the year. IBM’s comments that lower-cost, open-weight AI models can deliver comparable performance also raised questions about pricing power and AI monetization. Why Isn’t IBM’s Stock Bouncing Back After Strong Earnings Results?
• Negative Sentiment: Some analysts view IBM’s valuation as demanding relative to its modest underlying growth, while slower Consulting performance, debt and uncertainty over the durability of the software rebound could limit further upside.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.