International Business Machines Corporation (IBM) – What Are Investment Firms Thinking About This Stock?

International Business Machines Corporation (NYSE:IBM) has received an average rating of “Moderate Buy” from the thirty-four brokerages that are presently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, thirteen have given a hold recommendation and nineteen have issued a buy recommendation on the company. The average 12 month price target among brokers that have covered the stock in the last year is $266.12.

A number of equities research analysts have issued reports on IBM shares. Oppenheimer lowered shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 15th. Yorkville Ives initiated coverage on shares of International Business Machines in a research note on Monday, October 5th. They issued an “outperform” rating and a $275.00 price target for the company. Truist Financial set a $260.00 price objective on International Business Machines in a research report on Thursday, October 22nd. Bank of America cut their price objective on International Business Machines from $330.00 to $280.00 and set a “buy” rating on the stock in a research report on Wednesday, July 15th. Finally, Susquehanna increased their price objective on International Business Machines from $235.00 to $256.00 and gave the company a “neutral” rating in a research note on Wednesday, October 21st.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM introduced new AI-agent security controls that combine HashiCorp Vault, Agent Identity, and watsonx Orchestrate. The tools provide centralized governance, least-privilege access, real-time credential revocation, and sandboxed execution across hybrid-cloud environments, potentially strengthening IBM’s position in enterprise AI security. IBM Debuts AI Agent Security Controls For Hybrid Cloud
• Positive Sentiment: Analysts and commentators highlighted improving momentum in IBM’s software business, including its hybrid-cloud and enterprise infrastructure operations. IBM’s approximately $12 billion in free cash flow may support continued investment and shareholder returns. IBM’s Software Business Is Picking Up Speed
• Neutral Sentiment: Research reports project strong growth in service virtualization, edge computing, configuration-management systems, SMB IT spending, and battery-warranty analytics—markets in which IBM is listed as a participant. The reports indicate long-term addressable-market opportunities but do not represent new contracts or revenue guidance for IBM. Configuration Management Systems Global Strategic Business Report
• Neutral Sentiment: IBM’s opposition to blockchain-based stock trading reflects concerns about tokenized-market structures, but the issue appears unlikely to materially affect near-term financial results. Why Oracle, Intel, and IBM Are Saying No to Blockchain-Based Stock Trading
• Negative Sentiment: Concerns about IBM’s debt load and whether its long record of dividend increases can continue are weighing on the investment case. The stock’s decline during 2026 has made the dividend more attractive, but also highlights balance-sheet and payout sustainability risks. IBM Stock Is Down 13% in 2026. Is Its Dividend Still Safe?

Insider Buying and Selling at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.27% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

A number of large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of International Business Machines in the 2nd quarter valued at $21,586,659,000. State Street Corp grew its position 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 last quarter. Bank of America Corp DE acquired a new stake in International Business Machines during the 2nd quarter worth $4,214,868,000. Bank of New York Mellon Corp acquired a new stake in International Business Machines during the 2nd quarter worth $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in 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 worth $2,143,245,000 after acquiring an additional 53,388 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Stock Performance

Shares of International Business Machines stock opened at $257.80 on Friday. The stock has a market capitalization of $243.65 billion, a price-to-earnings ratio of 21.98, a price-to-earnings-growth ratio of 2.54 and a beta of 0.73. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80. The business has a 50-day moving average of $235.17 and a 200 day moving average of $249.93. International Business Machines has a 12 month low of $199.19 and a 12 month high of $332.46.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.10. International Business Machines had a net margin of 15.99% and a return on equity of 34.37%. The business had revenue of $17.10 billion for the quarter, compared to analysts’ expectations of $16.82 billion. During the same quarter in the prior year, the company earned $2.65 earnings per share. The business’s quarterly revenue was up 4.7% on a year-over-year basis. As a group, sell-side analysts forecast that International Business Machines will post 12.41 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be paid a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Tuesday, November 10th. International Business Machines’s dividend payout ratio (DPR) is presently 57.63%.

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.