International Business Machines (NYSE:IBM) Shares Up 1.9% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM) shares were up 1.9% on Thursday . The stock traded as high as $248.21 and last traded at $247.8580. Approximately 3,222,021 shares changed hands during mid-day trading, a decline of 45% from the average daily volume of 5,828,146 shares. The stock had previously closed at $243.14.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Federal approvals for watsonx and related AI/automation tools expand IBM’s addressable market with U.S. government customers — a catalyst for larger, recurring federal contracts and faster cloud adoption. IBM Expands FedRAMP Portfolio (PR Newswire)
• Positive Sentiment: Strategic collaboration with Arm to develop dual-architecture hardware signals IBM is positioning to power large-scale enterprise AI workloads — this can broaden product differentiation and address infrastructure spending in AI. IBM Announces Strategic Collaboration with Arm (PR Newswire)
• Positive Sentiment: Long-term research tie with ETH Zurich (10-year AI + quantum initiative) reinforces IBM’s pipeline for next‑generation algorithms and talent — a strategic win for future product leadership in AI/quantum. IBM Partners with ETH Zurich (Yahoo Finance)
• Positive Sentiment: Reports of a major fund increasing exposure to IBM suggest institutional buying interest amid recent share weakness, which can provide upward price support. A Major Fund’s Bullish Bet on IBM (AktienCheck)
• Positive Sentiment: Market coverage noting that 11 IBM AI/automation tools received government approval helped drive near-term sentiment and buying interest. IBM Stock Rises after Getting Government Approval (TipRanks)
• Neutral Sentiment: Full Sail University will open an IBM Cyber Defense Range (powered by AWS and Cloud Range) on campus — positive for ecosystem and talent development but likely limited near-term revenue impact. Full Sail University to Open IBM Cyber Defense Range (BusinessWire)
• Neutral Sentiment: Marketing activation — IBM will host a Masters Tournament watch event featuring an AI-powered golf simulator built with watsonx — useful for brand visibility but not material to fundamentals. Masters at Madison Square Park Watch Party (PR Newswire)
• Neutral Sentiment: Valuation and performance writeups note mixed recent returns and may prompt investors to reassess valuation versus growth expectations — a reminder to weigh fundamentals and catalysts. A Look At IBM Valuation (Yahoo Finance)

Analysts Set New Price Targets

Several research firms have commented on IBM. Argus set a $360.00 price objective on shares of International Business Machines in a report on Friday, January 30th. Weiss Ratings reissued a “buy (b)” rating on shares of International Business Machines in a research report on Thursday, January 22nd. UBS Group raised shares of International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price objective for the company in a report on Wednesday, February 25th. Erste Group Bank lowered shares of International Business Machines from a “buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Finally, Wall Street Zen downgraded International Business Machines from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, International Business Machines currently has an average rating of “Moderate Buy” and an average price target of $314.60.

International Business Machines Price Performance

The business’s 50-day moving average price is $262.05 and its 200 day moving average price is $284.16. The company has a market capitalization of $232.50 billion, a P/E ratio of 22.23, a price-to-earnings-growth ratio of 2.43 and a beta of 0.73. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share 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 business had revenue of $19.69 billion for the quarter, compared to analyst estimates of $19.23 billion. During the same quarter in the prior year, the firm posted $3.92 EPS. International Business Machines’s revenue was up 12.2% on a year-over-year basis. Analysts anticipate that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 10th were given a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Tuesday, February 10th. International Business Machines’s dividend payout ratio (DPR) is 60.27%.

Insider Activity at International Business Machines

In related news, Director Michael Miebach purchased 434 shares of the business’s stock in a transaction on Wednesday, February 25th. The stock was acquired at an average price of $233.33 per share, with a total value of $101,265.22. Following the purchase, the director directly owned 434 shares in the company, valued at approximately $101,265.22. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director David N. Farr acquired 1,000 shares of the stock in a transaction dated Friday, January 30th. The shares were bought at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the transaction, the director owned 9,258 shares in the company, valued at approximately $2,814,432. This represents a 12.11% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have acquired 1,484 shares of company stock valued at $417,157. 0.27% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently modified their holdings of IBM. Family CFO Inc purchased a new stake in International Business Machines in the fourth quarter worth approximately $25,000. Basepoint Wealth LLC purchased a new position in shares of International Business Machines during the fourth quarter worth approximately $25,000. Mountain Hill Investment Partners Corp. bought a new stake in shares of International Business Machines in the 3rd quarter worth approximately $28,000. Joseph Group Capital Management bought a new stake in shares of International Business Machines in the 4th quarter worth approximately $28,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of International Business Machines in the 4th quarter valued at $28,000. 58.96% of the stock is currently owned by hedge funds and other 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.