International Business Machines (NYSE:IBM) Stock Price Up 1.1% – Still a Buy?

International Business Machines Corporation (NYSE:IBM)’s stock price rose 1.1% on Friday . The stock traded as high as $264.66 and last traded at $262.3280. Approximately 6,785,198 shares changed hands during trading, an increase of 25% from the average daily volume of 5,421,600 shares. The stock had previously closed at $259.52.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Confluent shareholders approved the merger agreement with an IBM subsidiary, advancing IBM’s planned acquisition of Confluent and bolstering its real-time data/streaming capabilities—strategic for AI workloads and software revenue expansion. Confluent Shareholders Approve IBM Acquisition Merger Agreement
• Positive Sentiment: IBM says it will triple US entry-level hiring and recast roles for the AI era, signaling investment in talent to scale AI services and long‑term innovation—supportive for future revenue and margin expansion. IBM is tripling the number of Gen Z entry-level jobs after finding the limits of AI adoption
• Positive Sentiment: Product updates to IBM’s FlashSystem and QRadar emphasize storage and security positioning in AI deployments—helps drive upsell to large enterprise customers and supports the company’s hybrid cloud/AI narrative. IBM AI FlashSystem And QRadar Updates Shape Storage And Security Story
• Neutral Sentiment: Zacks flags IBM as a trending stock and summarizes factors investors should consider (valuation, earnings outlook, momentum); useful context but not new company-specific catalysts. International Business Machines Corporation (IBM) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Inclusion/mention of IBM in dividend‑aristocrat stock roundups reinforces income appeal to dividend investors, but it’s a reminder rather than a new catalyst. 3 Dividend Aristocrat Stocks To Buy for Reliable Income In 2026
• Neutral Sentiment: Coverage noting partnerships/visibility (e.g., with Datavault AI and NFL exposure) can raise brand and event-driven awareness but is more relevant to small-partner stocks than a material IBM catalyst. Datavault AI Death Cross Collides With IBM, Super Bowl Boost
• Negative Sentiment: A 13F filing shows Advisors Asset Management trimmed ~11% of its IBM position, a modest sign of institutional profit‑taking that could add selling pressure if broader redemptions continue. Fund Update: Advisors Asset Management, Inc. Just Disclosed New Holdings
• Negative Sentiment: Unusual options activity: traders bought a large volume of put options (roughly a 42% increase vs. average), indicating elevated hedging or bearish bets that can amplify short-term downside volatility.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Morgan Stanley set a $304.00 price target on shares of International Business Machines in a research note on Thursday, January 29th. Evercore raised their price objective on International Business Machines from $330.00 to $345.00 and gave the stock an “outperform” rating in a report on Thursday, January 29th. Stifel Nicolaus boosted their target price on International Business Machines from $325.00 to $340.00 and gave the company a “buy” rating in a report on Thursday, January 29th. Oppenheimer set a $380.00 target price on International Business Machines and gave the company an “outperform” rating in a research report on Thursday, January 29th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of International Business Machines in a research report on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $330.07.

International Business Machines Stock Up 1.1%

The company has a market capitalization of $245.21 billion, a PE ratio of 23.53, a P/E/G ratio of 2.73 and a beta of 0.69. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 1.67. The firm has a 50 day simple moving average of $300.15 and a two-hundred day simple moving average of $283.89.

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

International Business Machines Announces Dividend

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

Insider Transactions at International Business Machines

In other news, Director David N. Farr purchased 1,000 shares of the business’s stock in a transaction that occurred on Friday, January 30th. The stock was purchased at an average cost of $304.00 per share, with a total value of $304,000.00. Following the completion of the acquisition, the director directly owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. This trade represents a 12.11% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.18% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently modified their holdings of IBM. Basepoint Wealth LLC purchased a new position in shares of International Business Machines in the 4th quarter valued at about $25,000. Family CFO Inc acquired a new position in International Business Machines during the fourth quarter worth about $25,000. Winnow Wealth LLC acquired a new position in International Business Machines during the second quarter worth about $27,000. Joseph Group Capital Management purchased a new position in International Business Machines in the fourth quarter valued at about $28,000. Finally, Mountain Hill Investment Partners Corp. acquired a new stake in shares of International Business Machines during the 3rd quarter valued at approximately $28,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

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.