International Business Machines (NYSE:IBM) Stock Jumps 2.8% – Should You Buy?

Shares of International Business Machines Corporation (NYSE:IBM) were up 2.8% during mid-day trading on Thursday. The company traded as high as $227.31 and last traded at $226.6990. Approximately 8,639,919 shares were traded during mid-day trading, an increase of 14% from the average daily volume of 7,558,105 shares. The stock had previously closed at $220.51.

Key International Business Machines News

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

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. HSBC decreased their target price on International Business Machines from $175.00 to $174.00 in a research note on Friday, July 24th. Citigroup lowered their target price on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. Robert W. Baird began coverage on shares of International Business Machines in a report on Tuesday, July 21st. They issued a “neutral” rating and a $230.00 price target on the stock. JPMorgan Chase & Co. lowered their price objective on shares of International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a research report on Friday, July 17th. Finally, Wall Street Zen downgraded shares of International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, September 12th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $252.96.

International Business Machines Price Performance

The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The company has a market capitalization of $213.78 billion, a PE ratio of 20.13, a PEG ratio of 2.16 and a beta of 0.73. The firm has a fifty day moving average of $232.29 and a two-hundred day moving average of $243.97.

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

International Business Machines Announces Dividend

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

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business’s stock in a transaction on 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 transaction, the senior vice president directly owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.27% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in IBM. Portus Wealth Advisors LLC bought a new stake in shares of International Business Machines during the first quarter valued at approximately $26,000. Harborfront Financial Group LLC bought a new stake in shares of International Business Machines during the second quarter valued at approximately $27,000. Cornerstone Financial Management LLC purchased a new position in International Business Machines in the 4th quarter worth approximately $28,000. Hara Capital LLC bought a new position in International Business Machines in the 2nd quarter valued at approximately $28,000. Finally, Bare Financial Services Inc boosted its stake in International Business Machines by 114.6% during the 2nd 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 last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

About International Business Machines

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.