International Business Machines (NYSE:IBM) Shares Climb 1.8% – Should You Buy?

Shares of International Business Machines Corporation (NYSE:IBM) were up 1.8% during mid-day trading on Monday. The company traded as high as $238.38 and last traded at $236.3550. 4,896,342 shares were traded during mid-day trading, a decline of 34% from the average session volume of 7,459,210 shares. The stock had previously closed at $232.14.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: AI growth initiatives provide strategic support. IBM Ventures invested in Leena AI, a company developing autonomous agents for enterprise HR, IT and finance workflows. IBM also introduced the open-source llm-d 1.0 inference platform with Red Hat, Google Cloud, CoreWeave and NVIDIA, targeting more efficient, lower-cost enterprise AI deployments. These efforts could strengthen IBM’s hybrid-cloud and AI positioning over time. IBM Ventures Invests in Leena AI
• Positive Sentiment: Analysts continue to highlight software as IBM’s key earnings driver. Hybrid cloud, automation and Red Hat-related products are expected to outpace broader company growth, while IBM’s Logiq Consulting acquisition expands its cybersecurity reach in the United Kingdom’s defense and regulated markets. IBM’s Logiq Consulting Acquisition
• Positive Sentiment: IBM could benefit from a prolonged AI infrastructure cycle. Analysts expect continued spending on data centers, networking, cloud services and eventually quantum computing, areas in which IBM has potential exposure. However, this is a broad industry tailwind rather than a near-term earnings catalyst. The AI Buildout Is Only 15% Complete
• Neutral Sentiment: Third-quarter results are the immediate focus. Wall Street expects adjusted EPS of roughly $2.86–$2.87 and revenue of approximately $16.82–$16.84 billion. The earnings release and management’s guidance will determine whether IBM can alter its recent narrative. IBM Q3 Earnings Preview
• Negative Sentiment: Recent performance has weakened investor confidence. IBM shares are down about 17% year to date after the prior quarter’s results missed revenue expectations and triggered a sharp selloff. Technical indicators remain weak, and options markets imply a potentially large post-earnings move, increasing downside risk if revenue, bookings or guidance disappoint. IBM Stock Is Down 17% YTD

Analysts Set New Price Targets

IBM has been the subject of several research analyst reports. BMO Capital Markets dropped their price objective on International Business Machines from $270.00 to $230.00 and set a “market perform” rating for the company in a research note on Thursday, July 23rd. Daiwa Securities Group decreased their target price on International Business Machines from $247.00 to $217.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 29th. UBS Group reaffirmed a “neutral” rating on shares of International Business Machines in a report on Tuesday, October 13th. Stifel Nicolaus dropped their price target on International Business Machines from $290.00 to $235.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Finally, Citigroup cut their price objective on International Business Machines from $255.00 to $245.00 and set a “buy” rating for the company in a report on Friday, July 24th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $255.76.

International Business Machines Stock Performance

The company’s 50-day moving average price is $232.07 and its two-hundred day moving average price is $243.58. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a market cap of $228.19 billion, a PE ratio of 21.49, a PEG ratio of 2.27 and a beta of 0.73.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the previous year, the firm posted $2.80 EPS. The firm’s revenue was up 1.1% compared to the same quarter last year. On average, equities research analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current year.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.27% of the stock is owned by insiders.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently modified their holdings of IBM. Friday Financial lifted its holdings in International Business Machines by 1.9% during the second quarter. Friday Financial now owns 1,903 shares of the technology company’s stock valued at $583,000 after purchasing an additional 35 shares in the last quarter. Trinity Wealth Management LLC boosted its position in shares of International Business Machines by 2.3% in the second quarter. Trinity Wealth Management LLC now owns 1,695 shares of the technology company’s stock worth $477,000 after purchasing an additional 38 shares during the period. Pettinga Financial Advisors LLC increased its stake in shares of International Business Machines by 3.6% in the second quarter. Pettinga Financial Advisors LLC now owns 1,090 shares of the technology company’s stock worth $307,000 after purchasing an additional 38 shares in the last quarter. HHM Wealth Advisors LLC raised its position in shares of International Business Machines by 4.6% during the 2nd quarter. HHM Wealth Advisors LLC now owns 928 shares of the technology company’s stock valued at $261,000 after purchasing an additional 41 shares during the period. Finally, Basecamp Wealth Advisors LLC lifted its stake in shares of International Business Machines by 2.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,598 shares of the technology company’s stock valued at $387,000 after buying an additional 44 shares in the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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.