International Business Machines (NYSE:IBM) Shares Up 2.7% – Still a Buy?

International Business Machines Corporation (NYSE:IBM) shares traded up 2.7% during trading on Thursday . The stock traded as high as $260.38 and last traded at $256.87. 9,881,506 shares were traded during mid-day trading, an increase of 60% from the average session volume of 6,182,440 shares. The stock had previously closed at $250.06.

International Business Machines News Summary

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

• Positive Sentiment: Published in Science, IBM and university researchers reported creation and observation of a never-before-seen molecule using IBM quantum hardware — a high-profile demonstration that bolsters IBM’s long-term quantum credibility and R&D leadership. IBM and University Researchers Create a Never-Before-Seen Molecule and Prove its Exotic Nature with Quantum Computing
• Positive Sentiment: IBM announced a partnership to integrate Deepgram’s speech-to-text and text-to-speech into Watsonx Orchestrate, strengthening IBM’s enterprise voice/AI stack and improving product competitiveness for customers deploying generative AI. International Business Machines Corporation (IBM) Partners With Deepgram to Support Its Generative AI Solution
• Positive Sentiment: IBM won a multi-year $112 million Department of Defense contract to modernize commissary pricing displays — a tangible government revenue win that supports near-term backlog and showcases IBM’s govtech positioning. IBM Contract And Voice AI Deal Shape Government And Automation Story
• Positive Sentiment: Analyst attention is rising after recent earnings beats, insider buying and a UBS upgrade, prompting renewed valuation reappraisals and contributing to buying interest. A Look At IBM (IBM) Valuation After UBS Upgrade Insider Buying And Solid Earnings
• Neutral Sentiment: Market stories and investment write-ups highlight IBM’s rebound versus benchmarks and why some investors are watching the name heading into March — useful context but not a direct catalyst. IBM (IBM) Laps the Stock Market: Here’s Why
• Neutral Sentiment: Industry reports list IBM among many players in business process automation; this underscores secular demand for automation solutions but is a broad-market tailwind rather than a company-specific catalyst. Business Process Automation Strategic Market Report 2026-2030
• Negative Sentiment: Commentary pointing to abrupt intraday swings (examples of a >10% one-day drop) highlights continued stock volatility and sensitivity to macro/newsflow — a risk for short-term holders. If IBM Can Drop 13% In A Day, What Does This Say About These Market Conditions?
• Negative Sentiment: Some analysts and articles flag concerns — IBM is ~20% off its 52-week high and faces questions about mainframe exposure and long-term AI disruption; valuation and technicals (price below the 50/200-day averages) could limit near-term upside. A Look At IBM (IBM) Valuation After UBS Upgrade Insider Buying And Solid Earnings

Wall Street Analyst Weigh In

Several brokerages recently commented on IBM. Morgan Stanley reduced their price target on shares of International Business Machines from $304.00 to $247.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 25th. Dbs Bank upgraded International Business Machines from a “hold” rating to a “moderate buy” rating in a report on Monday, January 19th. Jefferies Financial Group reissued a “buy” rating on shares of International Business Machines in a research report on Monday, February 23rd. Argus set a $360.00 price objective on International Business Machines in a research report on Friday, January 30th. Finally, Oppenheimer set a $380.00 target price on International Business Machines and gave the company an “outperform” rating in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and an average target price of $320.87.

International Business Machines Trading Up 2.7%

The company has a 50 day moving average of $283.62 and a 200 day moving average of $284.04. The firm has a market cap of $240.95 billion, a P/E ratio of 23.04, a PEG ratio of 2.46 and a beta of 0.73. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96.

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

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be given a dividend of $1.68 per share. This represents a $6.72 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, February 10th. International Business Machines’s dividend payout ratio is presently 60.27%.

Insider Activity

In related news, Director Michael Miebach acquired 434 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The shares were acquired at an average cost of $233.33 per share, with a total value of $101,265.22. Following the purchase, the director owned 434 shares of the company’s stock, valued at approximately $101,265.22. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David N. Farr bought 1,000 shares of International Business Machines stock in a transaction that occurred on Friday, January 30th. The stock was bought at an average price of $304.00 per share, with a total value of $304,000.00. Following the completion of the acquisition, the director owned 9,258 shares in the company, valued at approximately $2,814,432. The trade was a 12.11% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have acquired 1,484 shares of company stock worth $417,157. Corporate insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

A number of institutional investors have recently modified their holdings of the company. Family CFO Inc bought a new position in International Business Machines in the 4th quarter worth $25,000. Basepoint Wealth LLC bought a new position in shares of International Business Machines in the fourth quarter worth about $25,000. Winnow Wealth LLC acquired a new position in shares of International Business Machines during the 2nd quarter worth about $27,000. Mountain Hill Investment Partners Corp. bought a new stake in International Business Machines during the 3rd quarter valued at approximately $28,000. Finally, Joseph Group Capital Management acquired a new stake in International Business Machines in the 4th quarter valued at approximately $28,000. Institutional investors own 58.96% of the company’s stock.

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.