International Business Machines Corporation (NYSE:IBM) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

International Business Machines Corporation (NYSE:IBM) has received a consensus recommendation of “Moderate Buy” from the twenty-six research firms that are presently covering the firm, MarketBeat reports. Nine research analysts have rated the stock with a hold recommendation, sixteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $306.7647.

Several research firms recently commented on IBM. Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a report on Tuesday, June 23rd. DZ Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price objective on the stock in a research note on Friday, April 24th. JPMorgan Chase & Co. raised shares of International Business Machines from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $270.00 to $291.00 in a research note on Tuesday, June 23rd. Susquehanna initiated coverage on shares of International Business Machines in a report on Tuesday, June 23rd. They set a “neutral” rating on the stock. Finally, Weiss Ratings downgraded shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th.

International Business Machines Stock Up 0.9%

NYSE:IBM opened at $288.95 on Friday. The business’s fifty day moving average price is $256.25 and its 200 day moving average price is $266.20. The firm has a market capitalization of $271.58 billion, a price-to-earnings ratio of 25.55, a PEG ratio of 2.96 and a beta of 0.68. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. International Business Machines has a 1-year low of $212.34 and a 1-year high of $332.46.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.10. The company had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.60 EPS. On average, sell-side analysts forecast that International Business Machines will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.3%. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date was Friday, May 8th. International Business Machines’s dividend payout ratio is presently 59.77%.

Hedge Funds Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its position in International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after buying an additional 2,323 shares during the period. Sivia Capital Partners LLC boosted its position in shares of International Business Machines by 10.6% in the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after acquiring an additional 186 shares during the period. Jump Financial LLC bought a new stake in shares of International Business Machines in the second quarter valued at approximately $211,000. Ieq Capital LLC grew its stake in shares of International Business Machines by 2.2% in the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after acquiring an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP increased its position in International Business Machines by 11.6% during the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after acquiring an additional 106 shares during the period. Institutional investors own 58.96% of the company’s stock.

International Business Machines News Roundup

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

• Positive Sentiment: IBM unveiled what was described as the world’s first 0.7-nanometer semiconductor technology, reinforcing its innovation story and potentially strengthening long-term confidence in its engineering leadership.
• Positive Sentiment: Analysts continue to point to IBM’s improving earnings outlook, with articles noting its strong history of beating estimates and suggesting another earnings beat could be ahead.
• Positive Sentiment: IBM’s hybrid cloud, AI demand, and quantum computing initiatives are still being viewed as key growth catalysts, which may help offset concerns that the stock has lagged the industry over the past three months.
• Neutral Sentiment: IBM hired Stagwell to refresh its global brand and campaign strategy, a move aimed at better aligning marketing with its AI, cloud, and quantum messaging.
• Neutral Sentiment: Coverage around IBM’s quantum computing bet remains mixed: bullish long-term commentary is being balanced by warnings that the technology still carries meaningful execution risk.
• Neutral Sentiment: A separate note from Trefis highlighted a wide range of possible outcomes for IBM, underscoring that the market is still debating the stock’s next chapter and valuation.
• Negative Sentiment: One article warned that IBM is lagging its industry recently and faces competitive pressure from Anthropic’s COBOL modernization efforts, which could weigh on sentiment if investors see it as a threat to legacy services.
• Negative Sentiment: Commentary on AI automation also noted that some companies, including IBM, have had to rehire workers after AI-driven cuts fell short, which may temper enthusiasm around near-term AI productivity gains.

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.