International Business Machines (NYSE:IBM) Earns Outperform Rating from Royal Bank Of Canada

International Business Machines (NYSE:IBM)‘s stock had its “outperform” rating restated by analysts at Royal Bank Of Canada in a note issued to investors on Thursday, Benzinga reports. They currently have a $270.00 target price on the technology company’s stock. Royal Bank Of Canada‘s target price would suggest a potential upside of 6.96% from the company’s previous close.

Several other research analysts also recently weighed in on the stock. Evercore decreased their target price on shares of International Business Machines from $310.00 to $250.00 and set an “outperform” rating for the company in a research note on Thursday, July 16th. Robert W. Baird lifted their price target on shares of International Business Machines from $230.00 to $260.00 and gave the stock a “neutral” rating in a research note on Thursday. HSBC dropped their price target on shares of International Business Machines from $175.00 to $174.00 in a research note on Friday, July 24th. Jefferies Financial Group raised their target price on International Business Machines from $270.00 to $280.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Citigroup lifted their target price on International Business Machines from $245.00 to $280.00 and gave the stock a “buy” rating in a research report on Thursday. Twenty equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $266.12.

International Business Machines Stock Up 0.4%

Shares of NYSE:IBM traded up $0.96 during mid-day trading on Thursday, hitting $252.42. 11,608,777 shares of the company traded hands, compared to its average volume of 7,483,776. The firm has a market cap of $237.81 billion, a P/E ratio of 22.40, a PEG 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. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The firm’s 50 day simple moving average is $232.36 and its 200 day simple moving average is $243.60.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping analysts’ consensus estimates of $2.85 by $0.10. The firm had revenue of $17.10 billion during the quarter, compared to analysts’ expectations of $16.82 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. International Business Machines’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.65 EPS. On average, equities analysts anticipate that International Business Machines will post 12.34 EPS for the current year.

Insider Activity

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value 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. This represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On International Business Machines

A number of institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new position in shares of International Business Machines in the 2nd quarter valued at approximately $21,586,659,000. State Street Corp boosted its holdings in shares of International Business Machines by 2.7% in the 2nd 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 during the period. Bank of America Corp DE boosted its holdings in shares of International Business Machines by 7.0% in the 1st 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 during the period. Bank of New York Mellon Corp acquired a new position in shares of International Business Machines in the 2nd quarter valued at about $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of International Business Machines by 0.7% in 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 buying an additional 53,388 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines News Summary

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

• Positive Sentiment: Q3 results exceeded expectations. IBM reported adjusted earnings of $2.95 per share versus a roughly $2.85–$2.88 consensus and revenue of $17.10 billion versus estimates near $16.82 billion. Revenue increased 4.7% year over year, while net income rose to $2.19 billion. IBM third-quarter results
• Positive Sentiment: Software and infrastructure provided momentum. Software revenue rose approximately 8%–9% to $7.8 billion, infrastructure revenue increased 4%, and delayed infrastructure contracts returned. Red Hat demand and enterprise AI activity were also highlighted. IBM software and infrastructure growth
• Positive Sentiment: Cash-flow outlook improved. IBM raised its full-year free-cash-flow expectation, targeting growth of more than $1 billion year over year. The company also declared a quarterly dividend of $1.69 per share, equivalent to an annualized $6.76 payout and an approximately 2.7% yield. IBM dividend announcement
• Positive Sentiment: Analysts raised targets. JPMorgan lifted its target to $269 with an overweight rating, while Stifel raised its target to $260 and RBC reaffirmed an outperform rating with a $270 target. Analyst IBM price-target changes

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.