International Business Machines (NYSE:IBM) Trading Up 3.6% – Here’s Why

Shares of International Business Machines Corporation (NYSE:IBM) traded up 3.6% on Friday . The stock traded as high as $216.10 and last traded at $214.1550. 10,500,355 shares changed hands during trading, an increase of 28% from the average session volume of 8,193,520 shares. The stock had previously closed at $206.65.

More International Business Machines News

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

• Positive Sentiment: Citigroup lowered its price target to $245 from $255 but kept a buy rating, signaling continued upside potential despite the recent selloff. Citigroup price target update via Benzinga
• Positive Sentiment: IBM announced a deal to acquire HRL Laboratories to strengthen its quantum computing push, reinforcing its long-term growth narrative in advanced technologies. IBM acquires HRL Laboratories
• Positive Sentiment: Despite the weak report, IBM declared a quarterly dividend of $1.69 per share, which may support income-focused investors. IBM second-quarter results release
• Neutral Sentiment: Social-media and analyst reactions to Q2 earnings were mixed, with some saying software strength and stable cash flow could offset weakness in infrastructure, while others questioned whether consulting momentum will improve later in the year. Quiver Quant earnings reaction summary
• Neutral Sentiment: IBM’s Q2 revenue grew only modestly year over year, and while earnings matched estimates, the company’s guidance reset suggests investors are waiting for proof that second-half demand will recover. IBM earnings snapshot
• Negative Sentiment: IBM cut its 2026 constant-currency revenue growth outlook to 4%–5% from above 5%, citing delayed software deals and weaker mainframe sales, which is the biggest reason the stock is being sold off. IBM cuts annual revenue growth forecast
• Negative Sentiment: Q2 revenue of about $17.16 billion missed estimates, and the mainframe business was notably weak, adding to concerns that enterprise customers are shifting budgets toward AI-related hardware instead of IBM’s legacy systems. IBM Q2 results and strategy coverage
• Negative Sentiment: Law firms have launched securities-fraud investigations tied to the post-earnings stock drop, adding an overhang that could keep sentiment cautious in the near term. IBM fraud investigation notice

Analysts Set New Price Targets

A number of equities analysts have recently commented on IBM shares. Morgan Stanley cut their price target on International Business Machines from $293.00 to $190.00 and set an “equal weight” rating for the company in a report on Thursday. Oppenheimer lowered shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 15th. Needham & Company LLC started coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating on the stock. Wall Street Zen lowered shares of International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, July 18th. Finally, BMO Capital Markets decreased their price target on International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research note on Thursday. Fifteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $265.40.

International Business Machines Stock Performance

The company has a market cap of $201.28 billion, a PE ratio of 19.00, a P/E/G ratio of 2.23 and a beta of 0.68. 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 business has a fifty day moving average of $263.03 and a 200-day moving average of $260.82.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting the consensus estimate of $2.93. The business had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a return on equity of 36.58% and a net margin of 15.52%.The business’s revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business posted $2.80 EPS. Equities research analysts anticipate that International Business Machines Corporation will post 12.15 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 3.2%. International Business Machines’s dividend payout ratio (DPR) is presently 59.77%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC boosted its stake in shares of International Business Machines by 12.4% during the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock valued at $4,619,000 after purchasing an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC boosted its position in International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after acquiring an additional 186 shares in the last quarter. Jump Financial LLC bought a new stake in International Business Machines during the 2nd quarter valued at approximately $211,000. Ieq Capital LLC grew its holdings in shares of International Business Machines by 2.2% during the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after acquiring an additional 843 shares during the period. Finally, Vivaldi Capital Management LP grew its holdings in shares of International Business Machines by 11.6% during the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after acquiring an additional 106 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Company Profile

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.