International Business Machines (NYSE:IBM) Shares Up 5.1% – Time to Buy?

Shares of International Business Machines Corporation (NYSE:IBM) traded up 5.1% during mid-day trading on Friday . The stock traded as high as $273.14 and last traded at $271.3570. 9,577,396 shares changed hands during trading, an increase of 31% from the average daily volume of 7,305,542 shares. The stock had previously closed at $258.27.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM introduced a new “nanostack” chip architecture at the 0.7 nm node, with roughly 100 billion transistors on a fingernail-sized chip. Analysts at Wedbush said the development supports IBM’s long-term hardware ambitions as AI computing demand rises. IBM quantum foundry plan adds to long-term hardware strategy: Wedbush
• Positive Sentiment: Multiple reports said the announcement could extend Moore’s Law and improve chip performance and energy efficiency, reinforcing IBM’s relevance in next-generation AI infrastructure. IBM unveils tech for chip smaller than 1 nanometer in AI computing push
• Positive Sentiment: Investor sentiment also improved after commentary that the breakthrough positions IBM as a possible long-term winner in AI hardware, helping fuel the stock’s recent momentum. IBM Unveils Prototype for Sub-1-Nanometer AI Chip. Why It Matters.
• Neutral Sentiment: Some coverage noted the technology is still a research prototype and may not reach production for years, so the commercial impact is not immediate. IBM (IBM) Stock Surges 6% on Revolutionary Sub-Nanometer Chip Technology
• Negative Sentiment: One article argued IBM still faces skepticism from investors over execution and longer-term growth, even after the chip news, which could temper enthusiasm. 3 Reasons to Avoid IBM and 1 Stock to Buy Instead

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on IBM shares. HSBC raised International Business Machines from a “reduce” rating to a “hold” rating and raised their target price for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. DZ Bank raised International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target for the company in a research note on Friday, April 24th. KeyCorp downgraded International Business Machines to a “sector weight” rating in a research report on Tuesday. Susquehanna began coverage on International Business Machines in a research note on Tuesday. They issued a “neutral” rating on the stock. Finally, BMO Capital Markets reduced their target price on International Business Machines from $290.00 to $270.00 and set a “market perform” rating on the stock in a report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and an average target price of $306.94.

International Business Machines Stock Performance

The stock has a market capitalization of $255.05 billion, a P/E ratio of 23.99, a price-to-earnings-growth ratio of 2.81 and a beta of 0.67. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The company has a 50-day moving average price of $253.83 and a two-hundred day moving average price of $267.26.

International Business Machines (NYSE:IBM) last announced 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 for the quarter, compared to analyst estimates of $15.60 billion. During the same quarter in the prior year, the company earned $1.60 EPS. The firm’s revenue for the quarter was up 9.5% compared to the same quarter last year. On average, equities analysts forecast that International Business Machines Corporation will post 12.39 earnings per share for the current year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Friday, May 8th. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is currently 59.77%.

Institutional Trading of International Business Machines

Hedge funds have recently modified their holdings of the stock. Norges Bank bought a new stake in International Business Machines in the fourth quarter valued at $2,446,429,000. Capital World Investors boosted its position in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after purchasing an additional 4,976,756 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of International Business Machines by 83.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company’s stock worth $1,663,847,000 after purchasing an additional 2,553,552 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of International Business Machines by 359.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company’s stock valued at $561,814,000 after buying an additional 1,484,026 shares during the period. Finally, Vanguard Group Inc. grew its stake in shares of International Business Machines by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock valued at $28,796,390,000 after buying an additional 1,439,824 shares during the period. 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.