International Business Machines (NYSE:IBM) Stock Keeps Outperform Rating at Royal Bank Of Canada

International Business Machines (NYSE:IBM)‘s stock had its “outperform” rating reissued by Royal Bank Of Canada in a research report issued on Thursday, Benzinga reports. They presently have a $270.00 price objective on the technology company’s stock. Royal Bank Of Canada‘s price target indicates a potential upside of 7.63% from the stock’s previous close.

Several other research analysts have also recently issued reports on IBM. Daiwa Securities Group decreased their price target on International Business Machines from $247.00 to $217.00 and set a “neutral” rating for the company in a research note on Wednesday, July 29th. Morgan Stanley lifted their price objective on shares of International Business Machines from $238.00 to $240.00 and gave the company an “equal weight” rating in a research note on Thursday. Wall Street Zen downgraded shares of International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, September 12th. HSBC decreased their target price on shares of International Business Machines from $175.00 to $174.00 in a research report on Friday, July 24th. Finally, Craig Hallum assumed coverage on shares of International Business Machines in a research note on Wednesday, August 19th. They set a “buy” rating on the stock. Twenty investment 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. Based on data from MarketBeat.com, International Business Machines has an average rating of “Moderate Buy” and an average target price of $266.12.

International Business Machines Stock Performance

Shares of IBM traded down $0.60 during midday trading on Thursday, hitting $250.86. 8,225,889 shares of the stock traded hands, compared to its average volume of 7,466,167. International Business Machines has a 1-year low of $199.19 and a 1-year high of $332.46. The firm has a market capitalization of $236.34 billion, a PE ratio of 22.27, a price-to-earnings-growth ratio of 2.32 and a beta of 0.73. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The business’s 50 day moving average price is $232.36 and its two-hundred day moving average price is $243.60.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, beating the consensus estimate of $2.85 by $0.10. The company had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines’s revenue was up 4.7% compared to the same quarter last year. During the same quarter last year, the business earned $2.65 earnings per share. Equities research analysts predict that International Business Machines will post 12.34 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares of the company’s stock, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. 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 corporate insiders.

Institutional Investors Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in International Business Machines during the second quarter worth approximately $21,586,659,000. State Street Corp increased its holdings in shares of International Business Machines by 2.7% in 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 buying an additional 1,450,562 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock valued at $3,893,669,000 after buying an additional 1,049,602 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of International Business Machines during the 2nd quarter valued at $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of International Business Machines by 0.7% during the 2nd 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 valued at $2,143,245,000 after acquiring an additional 53,388 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

More International Business Machines News

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

• Positive Sentiment: IBM reported adjusted EPS of $2.95 and revenue of $17.10 billion, exceeding consensus estimates of approximately $2.85–$2.88 and $16.82 billion, respectively. Revenue increased 4.7% year over year, while net income rose to $2.2 billion. IBM Q3 Beat Highlights Software Growth and a Stronger Cash Outlook
• Positive Sentiment: Software revenue grew about 8%–9%, Infrastructure revenue increased 4%, and management cited stronger Red Hat demand, recovering deal activity and enterprise AI momentum. IBM also raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion year over year. IBM Q3 Earnings Call Highlights Software Growth and Cash Flow Outlook
• Positive Sentiment: Several analysts raised their targets following the report: RBC reaffirmed an Outperform rating with a $270 target, JPMorgan raised its target to $269 with an Overweight rating, and Stifel lifted its target to $260 with a Buy rating.
• Positive Sentiment: IBM declared a quarterly dividend of $1.69 per share, equivalent to $6.76 annually and an indicated yield of roughly 2.7%, supporting the stock’s income appeal.
• Neutral Sentiment: IBM maintained its full-year constant-currency revenue-growth outlook of 4%–5%. The higher cash-flow forecast is encouraging, but the unchanged revenue outlook gives investors limited evidence that growth is accelerating sustainably.
• Negative Sentiment: The earnings reaction turned negative as management’s comments raised concerns about the durability of the software rebound and the pace of AI spending. A narrower-than-expected gross margin, premium valuation, debt load and slower Consulting growth are adding to investor caution. IBM falls as analysts question staying power of software rebound

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.