International Business Machines Corporation (NYSE:IBM – Get Free Report)’s share price shot up 1.8% during mid-day trading on Wednesday. The company traded as high as $258.59 and last traded at $254.50. Approximately 3,671,645 shares traded hands during mid-day trading, a decline of 50% from the average session volume of 7,347,616 shares. The stock had previously closed at $250.04.
Trending Headlines about International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: Evercore’s sum-of-the-parts analysis values IBM at $290 a share, above its $275 price target, suggesting the firm sees potential value in IBM’s businesses, including quantum computing. IBM Stock Could Be More Than a ‘Safe Haven.’ Quantum Computing Is a Big Reason
- Positive Sentiment: IBM’s Quantum System Two is now operational at the University of Chicago, expanding its quantum-computing presence and partnerships in Illinois. The installation strengthens IBM’s research and commercialization ecosystem, though financial returns are likely longer term. IBM Unveils Its Most Advanced Quantum Computer in Chicago
- Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform combining quantum and high-performance computing to advance quantum error correction, supporting IBM’s technology roadmap. The initiative targets progress toward a scientifically relevant quantum computer by 2028. Oak Ridge National Laboratory, IBM, and AMD Launch New Co-Design Platform for Quantum Error Correction
- Neutral Sentiment: A recent valuation commentary questions whether IBM’s cash-flow outlook supports the stock’s longer-term share-price gains. The excerpt does not provide a firm valuation conclusion, but it highlights investor scrutiny of the company’s price relative to future cash generation. IBM Stock Could Trade At A Discount After Quantum Computing News
Wall Street Analyst Weigh In
Several equities analysts recently commented on IBM shares. UBS Group boosted their price objective on shares of International Business Machines from $236.00 to $243.00 and gave the company a “neutral” rating in a research note on Thursday, October 22nd. Citigroup raised their price target on shares of International Business Machines from $245.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, October 22nd. The Goldman Sachs Group restated a “buy” rating and set a $300.00 price target on shares of International Business Machines in a research report on Thursday, October 22nd. Argus decreased their price target on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a report on Thursday, July 16th. Finally, Truist Financial set a $260.00 price objective on International Business Machines in a research report on Thursday, October 22nd. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $266.88.
International Business Machines Stock Performance
The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.80 and a current ratio of 0.85. The stock has a market cap of $231.28 billion, a PE ratio of 20.86, a PEG ratio of 2.50 and a beta of 0.78. The company’s 50-day moving average price is $236.76 and its two-hundred day moving average price is $248.64.
International Business Machines (NYSE:IBM – Get Free Report) last released its earnings results on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, beating analysts’ consensus estimates of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The business had revenue of $17.10 billion for the quarter, compared to analysts’ expectations of $16.82 billion. During the same quarter in the prior year, the firm earned $2.65 earnings per share. The firm’s revenue was up 4.7% on a year-over-year basis. On average, equities research analysts forecast that International Business Machines Corporation will post 12.41 EPS for the current year.
International Business Machines Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be paid a $1.69 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.8%. International Business Machines’s dividend payout ratio is 57.63%.
Insider Activity
In related news, SVP Robert Thomas sold 25,000 shares of the 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 owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.27% of the company’s stock.
Institutional Trading of International Business Machines
Several institutional investors have recently added to or reduced their stakes in the business. Harborfront Financial Group LLC purchased a new stake in shares of International Business Machines in the 2nd quarter worth $27,000. Hara Capital LLC bought a new position in shares of International Business Machines during the 2nd quarter worth $28,000. Bare Financial Services Inc increased its stake in shares of International Business Machines by 114.6% during the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock valued at $29,000 after buying an additional 55 shares during the period. Caitlin John LLC purchased a new position in shares of International Business Machines during the second quarter valued at $35,000. Finally, Osbon Capital Management LLC purchased a new position in shares of International Business Machines during the second quarter valued at $37,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.
About International Business Machines
International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers.
IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.
The company traces its roots to the Computing-Tabulating-Recording Company, formed in 1911, and adopted the name International Business Machines in 1924.
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