International Business Machines (NYSE:IBM) Stock Price Expected to Rise, Morgan Stanley Analyst Says

International Business Machines (NYSE:IBM) had its target price upped by stock analysts at Morgan Stanley from $190.00 to $238.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has an “equal weight” rating on the technology company’s stock. Morgan Stanley’s price objective suggests a potential upside of 2.22% from the company’s previous close.

Other analysts also recently issued reports about the stock. Argus dropped their target price 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. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines and gave the stock a “buy” rating in a research report on Thursday, July 23rd. Susquehanna raised their price target on shares of International Business Machines from $225.00 to $235.00 and gave the stock a “neutral” rating in a report on Monday, August 31st. BMO Capital Markets dropped their target price on International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research report on Thursday, July 23rd. Finally, UBS Group reissued a “neutral” rating on shares of International Business Machines in a research report on Tuesday. Nineteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $254.96.

International Business Machines Price Performance

Shares of International Business Machines stock traded up $4.94 during trading on Thursday, hitting $232.82. The stock had a trading volume of 2,173,211 shares, compared to its average volume of 7,456,948. The business has a fifty day moving average of $232.07 and a two-hundred day moving average of $243.68. The firm has a market cap of $219.35 billion, a P/E ratio of 20.68, a PEG ratio of 2.20 and a beta of 0.73. International Business Machines has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting the consensus estimate 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 for the quarter, compared to analysts’ expectations of $17.46 billion. During the same period in the previous year, the business earned $2.80 earnings per share. International Business Machines’s revenue for the quarter was up 1.1% compared to the same quarter last year. On average, sell-side analysts expect that International Business Machines will post 12.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business’s 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 completion of the transaction, the senior vice president owned 47,800 shares of the company’s stock, valued at $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is owned by company insiders.

Institutional Investors Weigh In On International Business Machines

Hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new position in International Business Machines in the 2nd quarter valued at approximately $21,586,659,000. State Street Corp increased its position in shares of International Business Machines by 2.7% during the second quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock valued at $15,760,430,000 after purchasing an additional 1,450,562 shares during the period. Bank of America Corp DE acquired a new position in shares of International Business Machines in the second quarter valued at $4,214,868,000. Bank of New York Mellon Corp acquired a new position in shares of International Business Machines in the second quarter valued at $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in International Business Machines by 0.7% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock worth $2,143,245,000 after purchasing an additional 53,388 shares during the period. 58.96% of the stock is owned by institutional investors.

International Business Machines News Roundup

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

• Positive Sentiment: Siemens partnership strengthens IBM’s semiconductor pipeline. Siemens will contribute electronic design automation, process simulation, lithography optimization and manufacturing-software expertise to IBM’s angstrom-scale nanostack transistor research. The collaboration could improve IBM’s ability to develop and eventually commercialize future chip architectures, although the financial impact is likely long term. IBM and Siemens Collaborate on Research to Advance Nanostack Architecture
• Positive Sentiment: RBC reaffirmed its Outperform rating. The analyst endorsement may help limit downside by signaling confidence in IBM’s business prospects and valuation following the recent sell-off. IBM Stock Rating Reaffirmed as Outperform by Royal Bank of Canada
• Neutral Sentiment: AI governance research highlights a growing enterprise opportunity but also implementation risks. IBM reported that 80% of surveyed EMEA executives had escalated an AI incident to the board or C-suite, while only 37% said their governance systems were ready for autonomous AI agents. The findings could support demand for IBM’s consulting, security and governance services, but also underscore the risks facing customers adopting AI. IBM Study on AI Governance
• Neutral Sentiment: Q3 earnings are the immediate catalyst. Investors will assess whether AI and hybrid-cloud growth can offset competition, margin pressure and IBM’s premium valuation. Analysts expect earnings growth, but recent previews question whether IBM has the combination of revenue momentum and operating performance needed to exceed expectations.
• Negative Sentiment: Cash-flow quality is drawing scrutiny. IBM reported first-half operating cash flow of $7.77 billion, up from $6.07 billion, but nearly all of the improvement came from changes in financing receivables. Investors may remain concerned that sustainable cash generation depends more on profitable software and consulting growth than on collecting customer balances. IBM Customer Financing and Cash Recovery

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.