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

Royal Bank Of Canada restated their outperform rating on shares of International Business Machines (NYSE:IBM) in a research note issued to investors on Thursday morning,Benzinga reports. They currently have a $270.00 target price on the technology company’s stock.

Several other analysts also recently commented on IBM. Stifel Nicolaus raised their target price on shares of International Business Machines from $235.00 to $260.00 and gave the stock a “buy” rating in a report on Thursday. Weiss Ratings upgraded shares of International Business Machines from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, October 14th. Robert W. Baird increased their price objective on shares of International Business Machines from $230.00 to $260.00 and gave the stock a “neutral” rating in a research report on Thursday. Susquehanna increased their price objective on shares of International Business Machines from $235.00 to $256.00 and gave the stock a “neutral” rating in a research report on Wednesday. Finally, Truist Financial set a $260.00 price objective on shares of International Business Machines in a report on Thursday. Twenty investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, International Business Machines has an average rating of “Moderate Buy” and an average price target of $266.12.

International Business Machines Trading Up 0.6%

NYSE IBM opened at $253.69 on Thursday. The firm has a market cap of $239.01 billion, a P/E ratio of 21.63, a P/E/G ratio of 2.43 and a beta of 0.73. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.74. The stock’s 50-day moving average is $233.06 and its 200-day moving average is $243.70. International Business Machines has a one year low of $199.19 and a one year high of $332.46.

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

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be issued a dividend of $1.69 per share. 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 dividend payout ratio (DPR) is presently 57.63%.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently bought and sold shares of IBM. Portus Wealth Advisors LLC acquired a new position in International Business Machines during the first quarter worth $26,000. Harborfront Financial Group LLC acquired a new stake in International Business Machines in the 2nd quarter valued at $27,000. Hara Capital LLC acquired a new stake in International Business Machines in the 2nd quarter valued at $28,000. Bare Financial Services Inc increased its stake in International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock valued at $29,000 after buying an additional 55 shares during the last quarter. Finally, Caitlin John LLC bought a new stake in International Business Machines during the 2nd quarter worth about $35,000. Institutional investors and hedge funds 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: 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.

International Business Machines Company Profile

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.