Wall Street Zen Upgrades International Business Machines (NYSE:IBM) to “Hold”

International Business Machines (NYSE:IBM) was upgraded by investment analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other analysts have also recently issued reports on IBM. Daiwa Securities Group reduced their price objective on International Business Machines from $247.00 to $217.00 and set a “neutral” rating for the company in a research report on Wednesday, July 29th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $300.00 target price on shares of International Business Machines in a research report on Thursday. JPMorgan Chase & Co. upped their target price on International Business Machines from $250.00 to $269.00 and gave the stock an “overweight” rating in a research report on Thursday. Citic Securities raised their price target on International Business Machines from $294.00 to $297.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. Finally, Citigroup lifted their price target on International Business Machines from $245.00 to $280.00 and gave the company a “buy” rating in a report 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 company. Based on data from MarketBeat.com, International Business Machines presently has an average rating of “Moderate Buy” and an average target price of $266.12.

International Business Machines Trading Up 0.1%

Shares of NYSE:IBM opened at $253.69 on Friday. The firm has a fifty day moving average of $233.06 and a two-hundred day moving average of $243.68. The firm has a market capitalization of $239.77 billion, a P/E ratio of 21.63, a price-to-earnings-growth ratio of 2.50 and a beta of 0.73. International Business Machines has a 12-month low of $199.19 and a 12-month high of $332.46. The company has a quick ratio of 0.80, 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 EPS for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $16.82 billion. During the same period in the previous year, the company posted $2.65 EPS. International Business Machines’s revenue was up 4.7% on a year-over-year basis. On average, equities analysts expect that International Business Machines will post 12.41 EPS for the current fiscal year.

Insider Activity at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction dated 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 transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was 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. Insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of International Business Machines in the second quarter valued at approximately $21,586,659,000. State Street Corp grew its stake in shares of International Business Machines by 2.7% in the second quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock worth $15,760,430,000 after acquiring an additional 1,450,562 shares during the last quarter. Bank of America Corp DE bought a new position in International Business Machines during the second quarter worth $4,214,868,000. Bank of New York Mellon Corp bought a new position in International Business Machines during the second quarter worth $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in International Business Machines by 0.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock worth $2,143,245,000 after acquiring an additional 53,388 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 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.