International Business Machines (NYSE:IBM) Trading 2.7% Higher – Should You Buy?

International Business Machines Corporation (NYSE:IBM) traded up 2.7% during mid-day trading on Tuesday . The company traded as high as $236.59 and last traded at $229.3440. 13,099,690 shares traded hands during trading, an increase of 121% from the average session volume of 5,940,713 shares. The stock had previously closed at $223.35.

Key International Business Machines News

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

• Positive Sentiment: UBS upgraded IBM from “Sell” to “Neutral,” helping spark buyer interest and supporting a short-term rebound. Read More.
• Positive Sentiment: IBM won a Department of War contract (ceiling ~$112M) to modernize electronic shelf labels, a concrete services win that supports revenue visibility in its consulting/systems business. Read More.
• Positive Sentiment: Company directors made small open-market purchases (including Michael Miebach and Michelle Howard), a signal of insider confidence that can bolster investor sentiment after volatility. Read More.
• Positive Sentiment: Several analyst notes and deep-dive pieces argue the recent selloff was overdone given strong Q4 results, record free cash flow and strategic AI/cloud assets — supporting a recovery narrative. Read More.
• Neutral Sentiment: Morgan Stanley trimmed its price target to $247 and set an “equal weight” rating, which moderates expectations and keeps upside capped near current levels. Read More.
• Neutral Sentiment: IBM published its 2026 X‑Force Threat Intelligence Index (ransomware surge and AI-accelerated attacks), which underlines both growing cybersecurity demand (opportunity) and rising threat landscape (risk). Read More.
• Negative Sentiment: The principal near-term downside remains AI-startup disruption fears after Anthropic’s Claude Code claim (automation of COBOL modernization) triggered a sharp selloff; the market is still weighing how quickly enterprise modernization demand could change. Read More.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on IBM shares. DZ Bank upgraded International Business Machines to a “hold” rating in a research report on Wednesday, February 11th. Morgan Stanley cut their price objective on shares of International Business Machines from $304.00 to $247.00 and set an “equal weight” rating for the company in a research note on Wednesday. Dbs Bank raised shares of International Business Machines from a “hold” rating to a “moderate buy” rating in a research note on Monday, January 19th. Stifel Nicolaus raised their price objective on International Business Machines from $325.00 to $340.00 and gave the company a “buy” rating in a research note on Thursday, January 29th. Finally, Royal Bank Of Canada set a $361.00 target price on International Business Machines in a research note on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $320.87.

International Business Machines Stock Up 1.9%

The company’s fifty day simple moving average is $288.39 and its 200 day simple moving average is $283.56. 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 market capitalization of $227.05 billion, a P/E ratio of 21.71, a price-to-earnings-growth ratio of 2.38 and a beta of 0.69.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The company had revenue of $19.69 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same period in the prior year, the firm earned $3.92 earnings per share. International Business Machines’s revenue 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 disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be given a dividend of $1.68 per share. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $6.72 annualized dividend and a yield of 2.8%. International Business Machines’s dividend payout ratio (DPR) is currently 60.27%.

Insider Transactions at International Business Machines

In other International Business Machines news, Director David N. Farr acquired 1,000 shares of the company’s stock in a transaction that occurred on Friday, January 30th. The shares were acquired at an average price of $304.00 per share, with a total value of $304,000.00. Following the completion of the purchase, the director directly owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. The trade was a 12.11% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Michael Miebach bought 434 shares of the firm’s stock in a transaction on Wednesday, February 25th. The shares were acquired at an average cost of $233.33 per share, with a total value of $101,265.22. Following the purchase, the director directly owned 434 shares of the company’s stock, valued at approximately $101,265.22. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have purchased 1,484 shares of company stock valued at $417,157. 0.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently modified their holdings of the stock. Oak Grove Capital LLC boosted its stake in International Business Machines by 13.4% in the 4th quarter. Oak Grove Capital LLC now owns 43,550 shares of the technology company’s stock worth $12,900,000 after purchasing an additional 5,150 shares in the last quarter. Tempo Wealth LLC purchased a new position in International Business Machines in the fourth quarter worth about $935,000. MidFirst Bank bought a new position in shares of International Business Machines in the fourth quarter worth approximately $3,210,000. DGS Capital Management LLC grew its holdings in shares of International Business Machines by 22.3% during the fourth quarter. DGS Capital Management LLC now owns 1,356 shares of the technology company’s stock valued at $402,000 after buying an additional 247 shares during the last quarter. Finally, Coastline Complete Wealth LLC bought a new stake in shares of International Business Machines during the fourth quarter valued at approximately $251,000. 58.96% of the stock is currently owned by 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.