International Business Machines (NYSE:IBM) Shares Up 1.9% – Should You Buy?

International Business Machines Corporation (NYSE:IBM)’s stock price rose 1.9% during trading on Thursday . The company traded as high as $248.21 and last traded at $247.8580. Approximately 3,222,021 shares changed hands during mid-day trading, a decline of 45% from the average daily volume of 5,828,146 shares. The stock had previously closed at $243.14.

Key International Business Machines News

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

• Positive Sentiment: Federal approvals for watsonx and related AI/automation tools expand IBM’s addressable market with U.S. government customers — a catalyst for larger, recurring federal contracts and faster cloud adoption. IBM Expands FedRAMP Portfolio (PR Newswire)
• Positive Sentiment: Strategic collaboration with Arm to develop dual-architecture hardware signals IBM is positioning to power large-scale enterprise AI workloads — this can broaden product differentiation and address infrastructure spending in AI. IBM Announces Strategic Collaboration with Arm (PR Newswire)
• Positive Sentiment: Long-term research tie with ETH Zurich (10-year AI + quantum initiative) reinforces IBM’s pipeline for next?generation algorithms and talent — a strategic win for future product leadership in AI/quantum. IBM Partners with ETH Zurich (Yahoo Finance)
• Positive Sentiment: Reports of a major fund increasing exposure to IBM suggest institutional buying interest amid recent share weakness, which can provide upward price support. A Major Fund’s Bullish Bet on IBM (AktienCheck)
• Positive Sentiment: Market coverage noting that 11 IBM AI/automation tools received government approval helped drive near-term sentiment and buying interest. IBM Stock Rises after Getting Government Approval (TipRanks)
• Neutral Sentiment: Full Sail University will open an IBM Cyber Defense Range (powered by AWS and Cloud Range) on campus — positive for ecosystem and talent development but likely limited near-term revenue impact. Full Sail University to Open IBM Cyber Defense Range (BusinessWire)
• Neutral Sentiment: Marketing activation — IBM will host a Masters Tournament watch event featuring an AI-powered golf simulator built with watsonx — useful for brand visibility but not material to fundamentals. Masters at Madison Square Park Watch Party (PR Newswire)
• Neutral Sentiment: Valuation and performance writeups note mixed recent returns and may prompt investors to reassess valuation versus growth expectations — a reminder to weigh fundamentals and catalysts. A Look At IBM Valuation (Yahoo Finance)

Analysts Set New Price Targets

A number of brokerages have recently issued reports on IBM. JPMorgan Chase & Co. reduced their price objective on International Business Machines from $317.00 to $283.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 18th. Argus set a $360.00 target price on International Business Machines in a report on Friday, January 30th. Royal Bank Of Canada set a $361.00 price target on International Business Machines in a research report on Thursday, January 29th. Jefferies Financial Group reiterated a “buy” rating on shares of International Business Machines in a research report on Monday, February 23rd. Finally, Bank of America increased their price objective on International Business Machines from $315.00 to $335.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, International Business Machines presently has an average rating of “Moderate Buy” and a consensus price target of $314.60.

International Business Machines Trading Up 1.9%

The company has a debt-to-equity ratio of 1.67, a current ratio of 0.96 and a quick ratio of 0.92. The firm’s 50 day moving average price is $262.05 and its 200 day moving average price is $284.16. The stock has a market capitalization of $232.50 billion, a P/E ratio of 22.23, a P/E/G ratio of 2.43 and a beta of 0.73.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.33 by $0.19. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The company had revenue of $19.69 billion for the quarter, compared to analysts’ expectations of $19.23 billion. During the same period last year, the firm earned $3.92 earnings per share. International Business Machines’s quarterly revenue was up 12.2% on a year-over-year basis. As a group, equities research analysts expect that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 10th were given a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Tuesday, February 10th. International Business Machines’s dividend payout ratio (DPR) is currently 60.27%.

Insider Activity at International Business Machines

In other International Business Machines news, Director Michael Miebach bought 434 shares of the firm’s stock in a transaction that occurred on Wednesday, February 25th. The stock was bought at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the acquisition, the director directly owned 434 shares in the company, valued at $101,265.22. The trade was a ? increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David N. Farr purchased 1,000 shares of the company’s stock in a transaction that occurred on Friday, January 30th. The stock was acquired at an average cost of $304.00 per share, with a total value of $304,000.00. Following the purchase, the director directly owned 9,258 shares of the company’s stock, valued at $2,814,432. This trade represents a 12.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 1,484 shares of company stock worth $417,157 over the last three months. Insiders own 0.27% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

A number of large investors have recently modified their holdings of IBM. Family CFO Inc bought a new position in International Business Machines in the fourth quarter worth about $25,000. Basepoint Wealth LLC purchased a new position in shares of International Business Machines during the 4th quarter worth approximately $25,000. Mountain Hill Investment Partners Corp. bought a new position in shares of International Business Machines in the 3rd quarter worth approximately $28,000. Joseph Group Capital Management bought a new position in shares of International Business Machines in the 4th quarter worth approximately $28,000. Finally, Cornerstone Financial Management LLC purchased a new position in shares of International Business Machines in the 4th quarter valued at approximately $28,000. 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.