Erste Group Bank Has Negative Outlook of IBM FY2027 Earnings

International Business Machines Corporation (NYSE:IBM) – Analysts at Erste Group Bank decreased their FY2027 earnings per share estimates for shares of International Business Machines in a research report issued on Friday, June 5th. Erste Group Bank analyst H. Engel now anticipates that the technology company will post earnings per share of $13.41 for the year, down from their previous forecast of $13.46. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for International Business Machines’ current full-year earnings is $12.40 per share.

A number of other equities analysts have also issued reports on the company. Morgan Stanley increased their price target on International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a research note on Thursday, April 23rd. UBS Group raised International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price target for the company in a research note on Wednesday, February 25th. Weiss Ratings raised International Business Machines from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. Barclays initiated coverage on International Business Machines in a research note on Monday, June 1st. They set an “overweight” rating and a $350.00 price target for the company. Finally, BMO Capital Markets decreased their price target on International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a research note on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $304.17.

International Business Machines Stock Down 1.7%

IBM opened at $272.78 on Thursday. International Business Machines has a 12 month low of $212.34 and a 12 month high of $332.46. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The stock has a market cap of $256.38 billion, a P/E ratio of 24.12, a P/E/G ratio of 2.87 and a beta of 0.67. The stock’s 50 day moving average price is $248.79 and its 200 day moving average price is $270.49.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. During the same period last year, the firm earned $1.60 EPS. The firm’s revenue was up 9.5% compared to the same quarter last year.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of International Business Machines by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock worth $28,796,390,000 after acquiring an additional 1,439,824 shares in the last quarter. State Street Corp boosted its stake in shares of International Business Machines by 1.0% during the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock worth $16,290,452,000 after acquiring an additional 518,321 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after acquiring an additional 336,069 shares in the last quarter. Capital World Investors boosted its stake in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after acquiring an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in shares of International Business Machines by 7.0% during the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after acquiring an additional 1,049,602 shares in the last quarter. 58.96% of the stock is owned by institutional investors.

International Business Machines Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were paid a dividend of $1.69 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.5%. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio is 59.77%.

More International Business Machines News

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

• Positive Sentiment: Jim Cramer publicly favored IBM over Xanadu Quantum, saying investors should “buy IBM” if they want exposure to the quantum theme, which can reinforce confidence in IBM as a more credible and profitable long-term AI/quantum name. Jim Cramer Recommends IBM Over Xanadu Quantum
• Positive Sentiment: IBM announced an expanded global collaboration with JA Worldwide to deliver AI and digital-skills education to up to one million high-school students, highlighting IBM’s efforts to build ecosystem adoption and strengthen its brand in AI. JA Worldwide and IBM Expand Global Collaboration with Goal of Delivering AI and Digital Skills to Up to One Million High-School Students
• Positive Sentiment: Several articles framed IBM as a strong long-term beneficiary of the quantum-computing boom, including coverage that described IBM as a “safer play” alongside Alphabet in the sector and another piece calling IBM a long-term buy tied to its recurring-revenue software and infrastructure engine. Quantum Computing Looks Like Nvidia in 2019. This Could Be the Generational Buy of the Decade.
• Neutral Sentiment: IBM CEO Arvind Krishna’s recent comments on quantum advantage, AI usage, and the company’s profit strategy keep IBM in the AI/quantum conversation, but the remarks were more strategic than immediately financial. IBM CEO Krishna on Quantum Advantage, Profit Strategy
• Neutral Sentiment: One analyst-style article argued that Celestica may be a better AI infrastructure buy than IBM due to faster growth and a cheaper valuation, which is a reminder that IBM still faces competition for investor capital in AI hardware/infrastructure. Celestica vs. IBM: Which AI Infrastructure Stock is the Better Buy?
• Negative Sentiment: Recent 247WallSt commentary said IBM has already rallied enough that some investors may prefer to wait for a pullback, and it also noted the stock is not cheap after IBM’s large quantum investment announcement. IBM Just Placed a $10 Billion Bet to Become the Nvidia of Quantum Computing

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.