International Business Machines (NYSE:IBM) Upgraded to Hold at Wall Street Zen

Wall Street Zen upgraded shares of International Business Machines (NYSE:IBM) from a sell rating to a hold rating in a research report sent to investors on Saturday morning.

Other research analysts have also issued research reports about the company. Citigroup dropped their price objective on International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a report on Friday, July 24th. Weiss Ratings downgraded International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Bank of America boosted their target price on shares of International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Robert W. Baird initiated coverage on shares of International Business Machines in a research note on Tuesday, July 21st. They set a “neutral” rating and a $230.00 price target on the stock. Finally, KeyCorp downgraded shares of International Business Machines to a “sector weight” rating in a report on Tuesday, June 23rd. Sixteen equities 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. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Trading Down 1.3%

Shares of International Business Machines stock opened at $235.78 on Friday. The firm has a market cap of $222.14 billion, a price-to-earnings ratio of 20.92, a price-to-earnings-growth ratio of 2.31 and a beta of 0.70. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The company’s 50-day simple moving average is $244.57 and its 200-day simple moving average is $248.65. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter last year, the firm earned $2.80 earnings per share. The firm’s revenue was up 1.1% compared to the same quarter last year. As a group, equities research analysts anticipate that International Business Machines will post 12.33 earnings per share for the current year.

International Business Machines Dividend Announcement

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

Insider Activity at International Business Machines

In other news, SVP Robert David Thomas sold 25,000 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the senior vice president directly owned 47,800 shares of the company’s stock, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.27% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On International Business Machines

Large investors have recently bought and sold shares of the stock. Orca Wealth Management LLC increased its position in shares of International Business Machines by 3.7% during the fourth quarter. Orca Wealth Management LLC now owns 975 shares of the technology company’s stock worth $285,000 after acquiring an additional 35 shares in the last quarter. Friday Financial lifted its position in International Business Machines by 1.9% in the 2nd quarter. Friday Financial now owns 1,903 shares of the technology company’s stock valued at $583,000 after acquiring an additional 35 shares in the last quarter. First Command Advisory Services Inc. boosted its stake in International Business Machines by 1.1% in the 4th quarter. First Command Advisory Services Inc. now owns 3,459 shares of the technology company’s stock worth $1,025,000 after purchasing an additional 36 shares during the period. HORAN Wealth LLC increased its holdings in International Business Machines by 1.3% during the 4th quarter. HORAN Wealth LLC now owns 2,851 shares of the technology company’s stock worth $844,000 after purchasing an additional 37 shares in the last quarter. Finally, Washington Trust Bank increased its holdings in International Business Machines by 2.2% during the 4th quarter. Washington Trust Bank now owns 1,712 shares of the technology company’s stock worth $507,000 after purchasing an additional 37 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

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.