International Business Machines (NYSE:IBM) Shares Up 1.6% – Still a Buy?

International Business Machines Corporation (NYSE:IBM) rose 1.6% during trading on Friday . The stock traded as high as $237.32 and last traded at $237.0770. 4,745,212 shares were traded during trading, a decline of 42% from the average daily volume of 8,177,854 shares. The stock had previously closed at $233.43.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM previewed Apptio AI Value & ROI, a tool designed to track AI spending—including token costs—and connect it with business outcomes. The offering could help enterprises justify AI investments and strengthen IBM’s position in AI governance and FinOps software. IBM previews Apptio AI Value & ROI to track AI spend and results
• Positive Sentiment: IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools in regulated environments. The approval may expand IBM’s government-cloud opportunity and provide a credibility boost for its software business. IBM Secures FedRAMP Moderate Authorization For Maximo
• Neutral Sentiment: Recent commentary describes IBM as a high-risk, mixed setup: software growth is strong, but declining mainframe sales and the aftermath of the earnings-related selloff could limit the rebound. Investors are weighing whether the recovery reflects value or unresolved operational risk. IBM’s Post-Collapse Rebound: A Complex Risk Reward Profile
• Negative Sentiment: Hagens Berman, Bleichmar Fonti & Auld, and Pomerantz announced investigations related to IBM’s reported financial disclosures and the severe post-earnings decline. These announcements do not establish wrongdoing, but they add legal uncertainty, reputational risk and potential shareholder-claim exposure. IBM Securities Fraud Investigation is Ongoing Pomerantz IBM investor investigation
• Negative Sentiment: Kyndryl reported ongoing IBM-related revenue declines, underscoring potential headwinds in legacy infrastructure and services. That weakness contrasts with IBM’s software momentum and may reinforce concerns about the company’s transition away from older businesses. Kyndryl earnings call highlights

Wall Street Analyst Weigh In

Several brokerages have weighed in on IBM. Argus lowered their target price on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research note on Thursday, July 16th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Royal Bank Of Canada reiterated an “outperform” rating and set a $270.00 price objective on shares of International Business Machines in a report on Tuesday, July 21st. JPMorgan Chase & Co. lowered their price objective on International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a research report on Friday, July 17th. Finally, Bank of America boosted their target price on International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, International Business Machines currently has a consensus rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Stock Up 1.6%

The business’s 50 day moving average is $259.82 and its 200 day moving average is $255.42. The company has a market capitalization of $223.36 billion, a price-to-earnings ratio of 21.04, a PEG ratio of 2.31 and a beta of 0.70. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting the consensus estimate 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 for the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the previous year, the firm earned $2.80 EPS. International Business Machines’s revenue was up 1.1% compared to the same quarter last year. Sell-side analysts anticipate that International Business Machines Corporation will post 12.34 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines’s payout ratio is 59.98%.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Basepoint Wealth LLC acquired a new position in shares of International Business Machines in the fourth quarter valued at about $25,000. Family CFO Inc purchased a new position in shares of International Business Machines in the fourth quarter worth about $25,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines during the fourth quarter worth about $28,000. Cornerstone Financial Management LLC acquired a new stake in shares of International Business Machines during the fourth quarter worth about $28,000. Finally, SWAN Capital LLC purchased a new stake in International Business Machines in the third quarter valued at approximately $28,000. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

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.