International Business Machines (NYSE:IBM) Shares Up 2.3% – Time to Buy?

International Business Machines Corporation (NYSE:IBM)’s share price shot up 2.3% on Monday . The company traded as high as $278.15 and last traded at $277.8280. Approximately 6,383,185 shares traded hands during trading, a decline of 13% from the average daily volume of 7,301,420 shares. The stock had previously closed at $271.63.

Key International Business Machines News

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

• Positive Sentiment: IBM is drawing attention after unveiling the world’s first sub-1 nanometer chip technology, a breakthrough that could reinforce its position in advanced semiconductor research and future AI infrastructure. International Business Machines (IBM) Is Up 10.2% After Unveiling 0.7 nm Nanostack Chip Breakthrough
• Positive Sentiment: Recent coverage says IBM has the ingredients to beat estimates again in its next earnings report, which supports expectations for another solid quarterly result. Will IBM (IBM) Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: IBM is also benefiting from broader enthusiasm around enterprise AI adoption and AI-related cybersecurity work, including collaboration on open-source software supply chain vulnerabilities. NOW Benefits From Enterprise AI Adoption: Buy, Sell, or Hold the Stock?
• Positive Sentiment: IBM’s quantum-computing efforts are also in focus after a former chief scientist warned “Q-Day” may be just 3 to 4 years away, underscoring IBM’s role in a fast-growing strategic technology area. Former IBM Chief Scientist Warns Q-Day Is 3 To 4 Years Away—Banks Are Running Out Of Time
• Neutral Sentiment: IBM picked Stagwell as a creative partner/lead creative agency, a brand-marketing move that is unlikely to materially affect near-term fundamentals but supports ongoing corporate campaign activity. IBM Picks Stagwell as Creative Partner
• Neutral Sentiment: Separate commentary highlighted that IBM is among companies rehiring workers after AI-driven layoffs fell short, which is more of a business-model commentary than a direct earnings catalyst. Companies rehire workers laid off for AI as automation falls short

Analyst Upgrades and Downgrades

IBM has been the topic of a number of research analyst reports. Citigroup raised their price target on shares of International Business Machines from $285.00 to $375.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Jefferies Financial Group started coverage on International Business Machines in a research report on Tuesday, June 23rd. They issued a “buy” rating on the stock. Wedbush set a $350.00 price objective on shares of International Business Machines in a research report on Tuesday, June 2nd. KeyCorp lowered International Business Machines to a “sector weight” rating in a research report on Tuesday, June 23rd. Finally, Barclays initiated coverage on International Business Machines in a research note on Monday, June 1st. They set an “overweight” rating and a $350.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $306.94.

International Business Machines Stock Up 1.8%

The stock has a market cap of $268.96 billion, a price-to-earnings ratio of 25.35, a price-to-earnings-growth ratio of 2.88 and a beta of 0.67. The firm’s fifty day moving average price is $254.94 and its two-hundred day moving average price is $266.51. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

International Business Machines (NYSE:IBM) last issued its earnings results 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 company had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. During the same period last year, the business posted $1.60 EPS. The firm’s revenue for the quarter was up 9.5% compared to the same quarter last year. Sell-side analysts forecast 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 disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.4%. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s payout ratio is 59.77%.

Hedge Funds Weigh In On International Business Machines

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock valued at $28,796,390,000 after purchasing an additional 1,439,824 shares in the last quarter. State Street Corp increased its stake in shares of International Business Machines by 1.0% during the fourth quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after purchasing an additional 518,321 shares in the last quarter. Geode Capital Management LLC raised its position in shares of International Business Machines by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after purchasing an additional 336,069 shares during the last quarter. Capital World Investors raised its position in International Business Machines by 29.2% in the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after buying an additional 4,976,756 shares during the last quarter. Finally, Bank of America Corp DE increased its stake 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 worth $3,893,669,000 after purchasing an additional 1,049,602 shares in the last quarter. 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.