International Business Machines (NYSE:IBM) Sees Large Volume Increase – What’s Next?

International Business Machines Corporation (NYSE:IBM) saw strong trading volume on Thursday . 5,306,239 shares traded hands during trading, a decline of 11% from the previous session’s volume of 5,955,395 shares.The stock last traded at $237.0680 and had previously closed at $225.00.

International Business Machines News Roundup

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

• Positive Sentiment: IBM announced a letter of intent with the U.S. Department of Commerce to create “America’s first pure-play quantum foundry,” with the proposed CHIPS support package including about $1 billion for IBM’s new quantum venture, Anderon. IBM and U.S. Department of Commerce Announce America’s First Purpose-Built Quantum Foundry, Supported by Proposed $1 Billion CHIPS Award
• Positive Sentiment: The broader quantum-computing trade also got a lift after reports said the Trump administration plans to direct roughly $2 billion in grants to nine quantum companies, including IBM, signaling strong government support for the sector. Trump Admin To Take Quantum Stakes — D-Wave, Rigetti, IonQ Stocks Pop
• Positive Sentiment: Investors also appeared to react to heavy call-option activity in IBM, suggesting rising expectations for further upside. Advance Auto Parts Posts Upbeat Q1 Earnings, Joins IBM, Ralph Lauren And Other Big Stocks Moving Higher On Thursday
• Neutral Sentiment: IBM has also been expanding its AI cybersecurity portfolio and working with Anthropic on Project Glasswing, which supports the company’s longer-term enterprise software and security narrative, though this is more of a strategic catalyst than an immediate earnings driver. IBM Expands AI Security With Anthropic Partnership And Open Source Focus

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on IBM shares. Weiss Ratings lowered International Business Machines from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, May 4th. Oppenheimer decreased their target price on International Business Machines from $380.00 to $320.00 and set an “outperform” rating for the company in a research report on Thursday, April 16th. DZ Bank raised International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price for the company in a research report on Friday, April 24th. Citigroup started coverage on International Business Machines in a research report on Friday, April 10th. They issued a “buy” rating and a $285.00 target price for the company. Finally, BMO Capital Markets decreased their target price on International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $294.41.

International Business Machines Price Performance

The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The stock has a market cap of $229.94 billion, a P/E ratio of 21.56, a price-to-earnings-growth ratio of 2.30 and a beta of 0.58. The firm has a 50-day moving average price of $238.52 and a 200-day moving average price of $272.95.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping the consensus estimate of $1.81 by $0.10. The company had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.60 EPS. On average, 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 business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be paid a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Friday, May 8th. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is currently 59.77%.

Insider Buying and Selling at International Business Machines

In related news, Director Michael Miebach purchased 434 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The shares were bought at an average price of $233.33 per share, for a total transaction 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.27% of the stock is owned by insiders.

Institutional Trading of International Business Machines

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Norges Bank purchased a new stake in International Business Machines during the 4th quarter valued at $2,446,429,000. Capital World Investors boosted its stake in 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 valued at $6,523,720,000 after purchasing an additional 4,976,756 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in 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 valued at $1,663,847,000 after purchasing an additional 2,553,552 shares during the last quarter. Corient Private Wealth LLC boosted its stake in International Business Machines by 359.6% during 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 purchasing an additional 1,484,026 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in International Business Machines by 1.5% during 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 purchasing an additional 1,439,824 shares during the last quarter. Hedge funds and other 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.