International Business Machines (NYSE:IBM) Shares Up 2.7% After Analyst Upgrade

Shares of International Business Machines Corporation (NYSE:IBM) were up 2.7% during mid-day trading on Thursday after Morgan Stanley raised their price target on the stock from $190.00 to $238.00. Morgan Stanley currently has an equal weight rating on the stock. International Business Machines traded as high as $234.14 and last traded at $234.0440. 5,585,308 shares changed hands during trading, a decline of 25% from the average session volume of 7,474,910 shares. The stock had previously closed at $227.88.

IBM has been the subject of a number of other research reports. Daiwa Securities Group dropped their target price on International Business Machines from $247.00 to $217.00 and set a “neutral” rating for the company in a report on Wednesday, July 29th. JPMorgan Chase & Co. decreased their price target on International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a report on Friday, July 17th. Craig Hallum initiated coverage on International Business Machines in a report on Wednesday, August 19th. They set a “buy” rating on the stock. Wolfe Research downgraded International Business Machines to a “peer perform” rating in a research report on Tuesday, June 23rd. Finally, Jefferies Financial Group dropped their price objective on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating for the company in a research note on Tuesday, July 21st. Nineteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $254.96.

Insiders Place Their Bets

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated 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 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.27% of the stock is owned by company insiders.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Bank of America expects IBM to modestly exceed third-quarter earnings expectations while maintaining its 2026 outlook. The bank reiterated its Buy rating and $280 price target, citing higher-margin software growth, improving profitability and strong free cash flow. Bank of America expects IBM third-quarter beat
• Positive Sentiment: Morgan Stanley raised its IBM price target from $190 to $238, reflecting a more favorable valuation outlook, although it retained an Equal Weight rating and sees limited near-term upside. Morgan Stanley raises IBM price target
• Positive Sentiment: IBM and Siemens are collaborating on IBM’s nanostack transistor architecture. Siemens will contribute electronic-design automation, simulation and manufacturing expertise, potentially accelerating IBM’s semiconductor innovation and future commercialization prospects. IBM and Siemens nanostack collaboration
• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating, adding to the supportive analyst commentary ahead of earnings. RBC reaffirms IBM Outperform rating
• Neutral Sentiment: IBM’s research found that AI incidents are increasingly reaching executive and boardroom levels, highlighting demand for governance, security and consulting services. However, the limited readiness of many enterprises also underscores adoption and execution risks. IBM AI governance study
• Negative Sentiment: Investors remain focused on whether IBM’s upcoming results can justify its premium valuation amid competition, margin pressure and uncertain AI and hybrid-cloud growth.
• Negative Sentiment: IBM reported $7.77 billion in first-half operating cash flow, but much of the improvement came from financing-receivable movements rather than core business growth, raising questions about cash-flow sustainability.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently modified their holdings of IBM. BlackRock Inc. bought a new stake in International Business Machines during the 2nd quarter valued at about $21,586,659,000. State Street Corp grew its stake in 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 worth $15,760,430,000 after acquiring an additional 1,450,562 shares in the last quarter. Bank of America Corp DE bought a new position in International Business Machines in the 2nd quarter worth about $4,214,868,000. Bank of New York Mellon Corp purchased a new position in shares of International Business Machines during the second quarter worth approximately $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of International Business Machines by 0.7% during the second 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 during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Trading Up 2.7%

The stock’s 50-day moving average price is $232.07 and its 200 day moving average price is $243.68. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a market capitalization of $220.50 billion, a PE ratio of 20.77, a price-to-earnings-growth ratio of 2.20 and a beta of 0.73.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%. The firm had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the business earned $2.80 earnings per share. International Business Machines’s quarterly revenue was up 1.1% on a year-over-year basis. On average, sell-side analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were given a dividend of $1.69 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines’s payout ratio is 59.98%.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.