International Business Machines (NYSE:IBM) Stock Price Up 2% – Time to Buy?

International Business Machines Corporation (NYSE:IBM)’s stock price rose 2% during trading on Tuesday . The stock traded as high as $242.85 and last traded at $241.9960. Approximately 4,708,722 shares changed hands during mid-day trading, a decline of 20% from the average daily volume of 5,890,671 shares. The stock had previously closed at $237.25.

Key Headlines Impacting International Business Machines

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)

Analyst Upgrades and Downgrades

Several research firms have recently commented on IBM. Evercore upped their target price on International Business Machines from $330.00 to $345.00 and gave the company an “outperform” rating in a research report on Thursday, January 29th. BMO Capital Markets dropped their price target on International Business Machines from $350.00 to $290.00 and set a “market perform” rating for the company in a report on Thursday, March 19th. JPMorgan Chase & Co. decreased their price objective on International Business Machines from $317.00 to $283.00 and set a “neutral” rating on the stock in a report on Wednesday, March 18th. Argus set a $360.00 price objective on International Business Machines in a research report on Friday, January 30th. Finally, DZ Bank raised International Business Machines to a “hold” rating in a report on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $314.60.

International Business Machines Stock Up 1.8%

The stock has a 50-day moving average of $262.05 and a 200-day moving average of $284.16. 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 has a market cap of $232.20 billion, a price-to-earnings ratio of 22.19, a P/E/G ratio of 2.43 and a beta of 0.73.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, beating analysts’ consensus estimates of $4.33 by $0.19. The firm had revenue of $19.69 billion during the quarter, compared to the consensus estimate of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The company’s revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the company posted $3.92 EPS. Sell-side analysts predict that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $6.72 annualized dividend and a yield of 2.7%. International Business Machines’s dividend payout ratio is currently 60.27%.

Insider Transactions at International Business Machines

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

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in IBM. J. Derek Lewis & Associates Inc. acquired a new stake in shares of International Business Machines in the 4th quarter valued at $465,000. Purpose Unlimited Inc. bought a new position in shares of International Business Machines in the 4th quarter valued at $817,000. Cornerstone Planning LLC acquired a new position in shares of International Business Machines during the 4th quarter worth $4,366,000. Forty three Eighteen Advisors LLC bought a new stake in shares of International Business Machines during the 4th quarter worth $2,063,000. Finally, Rockefeller Capital Management L.P. lifted its position in shares of International Business Machines by 20.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 564,188 shares of the technology company’s stock worth $167,118,000 after buying an additional 95,065 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

About International Business Machines

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.