International Business Machines (NYSE:IBM) Trading Up 7.3% on Analyst Upgrade

Shares of International Business Machines Corporation (NYSE:IBM) shot up 7.3% on Monday after Barclays upgraded the stock to a strong-buy rating. Barclays now has a $350.00 price target on the stock. International Business Machines traded as high as $327.98 and last traded at $319.6670. 32,605,397 shares were traded during mid-day trading, an increase of 373% from the average session volume of 6,894,446 shares. The stock had previously closed at $297.80.

Other analysts have also issued reports about the company. Erste Group Bank lowered International Business Machines from a “buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Wedbush set a $350.00 target price on International Business Machines in a research note on Tuesday. Morgan Stanley increased their target price on shares of International Business Machines from $215.00 to $225.00 and gave the stock an “equal weight” rating in a report on Thursday, April 23rd. JPMorgan Chase & Co. decreased their price target on shares of International Business Machines from $317.00 to $283.00 and set a “neutral” rating on the stock in a report on Wednesday, March 18th. Finally, Weiss Ratings cut shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, May 21st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $299.17.

Key International Business Machines News

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

• Positive Sentiment: Barclays upgraded IBM to strong-buy, reinforcing bullish analyst sentiment and suggesting further upside potential. Zacks.com
• Positive Sentiment: IBM’s announced $10 billion quantum computing investment is fueling investor confidence in its long-term growth strategy and leadership in the sector. IBM Commits More Than $10 Billion to Quantum Computing
• Positive Sentiment: Comments from IBM’s CEO on quantum computing, along with broader excitement around the “quantum trade,” are keeping momentum strong in the shares. IBM CEO sends strong message on quantum computing
• Neutral Sentiment: Some articles question whether IBM’s recent rally has pushed the stock too far, with valuation concerns starting to emerge after the sharp run-up. Is It Too Late To Consider IBM (IBM) After Its Recent Share Price Surge?
• Negative Sentiment: Analysts flagged overvaluation risk even as IBM’s stock surged, which could limit upside if expectations become too stretched. IBM Stock Surges on Trump Video, $10B Quantum Bet: Analysts Flag Overvaluation Risk

Institutional Investors Weigh In On International Business Machines

A number of institutional investors have recently added to or reduced their stakes in the business. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in shares of International Business Machines by 424.6% in the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock worth $77,234,000 after buying an additional 211,040 shares during the last quarter. GLOBALT Investments LLC GA increased its holdings in International Business Machines by 19.1% during the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock worth $5,417,000 after buying an additional 2,930 shares during the last quarter. Waverton Investment Management Ltd raised its position in International Business Machines by 3.3% in the third quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company’s stock worth $280,439,000 after acquiring an additional 32,072 shares during the period. Newbridge Financial Services Group Inc. boosted its stake in International Business Machines by 30.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock valued at $3,887,000 after acquiring an additional 3,029 shares during the last quarter. Finally, NEOS Investment Management LLC grew its position in shares of International Business Machines by 51.7% during the 3rd quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company’s stock valued at $32,278,000 after acquiring an additional 38,973 shares during the period. 58.96% of the stock is owned by institutional investors.

International Business Machines Stock Up 2.9%

The stock’s 50-day moving average price is $241.55 and its two-hundred day moving average price is $270.75. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The stock has a market capitalization of $309.90 billion, a P/E ratio of 29.15, a P/E/G ratio of 3.32 and a beta of 0.67.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data 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 business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same quarter in the prior year, the business earned $1.60 earnings per share. International Business Machines’s revenue for the quarter was up 9.5% on a year-over-year basis. As a group, research analysts expect that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.1%. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s payout ratio is currently 59.77%.

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.