International Business Machines (NYSE:IBM) Shares Up 1.6% – Here’s Why

International Business Machines Corporation (NYSE:IBM) was up 1.6% during trading on Friday . The company traded as high as $237.32 and last traded at $237.0770. 4,745,212 shares were traded during mid-day trading, a decline of 42% from the average session volume of 8,177,854 shares. The stock had previously closed at $233.43.

International Business Machines News Roundup

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

• Positive Sentiment: IBM previewed Apptio AI Value & ROI, a tool designed to track AI spending—including token costs—and connect it with business outcomes. The offering could help enterprises justify AI investments and strengthen IBM’s position in AI governance and FinOps software. IBM previews Apptio AI Value & ROI to track AI spend and results
• Positive Sentiment: IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools in regulated environments. The approval may expand IBM’s government-cloud opportunity and provide a credibility boost for its software business. IBM Secures FedRAMP Moderate Authorization For Maximo
• Neutral Sentiment: Recent commentary describes IBM as a high-risk, mixed setup: software growth is strong, but declining mainframe sales and the aftermath of the earnings-related selloff could limit the rebound. Investors are weighing whether the recovery reflects value or unresolved operational risk. IBM’s Post-Collapse Rebound: A Complex Risk Reward Profile
• Negative Sentiment: Hagens Berman, Bleichmar Fonti & Auld, and Pomerantz announced investigations related to IBM’s reported financial disclosures and the severe post-earnings decline. These announcements do not establish wrongdoing, but they add legal uncertainty, reputational risk and potential shareholder-claim exposure. IBM Securities Fraud Investigation is Ongoing Pomerantz IBM investor investigation
• Negative Sentiment: Kyndryl reported ongoing IBM-related revenue declines, underscoring potential headwinds in legacy infrastructure and services. That weakness contrasts with IBM’s software momentum and may reinforce concerns about the company’s transition away from older businesses. Kyndryl earnings call highlights

Analysts Set New Price Targets

IBM has been the subject of several research reports. Citigroup dropped their price objective on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating for the company in a report on Friday, July 24th. Bank of America raised their target price on shares of International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, July 6th. Susquehanna dropped their price objective on International Business Machines from $303.00 to $225.00 and set a “neutral” rating for the company in a report on Friday, July 24th. Barclays reduced their price target on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating on the stock in a research note on Thursday, July 23rd. Finally, Argus lowered their price objective on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research report on Thursday, July 16th. 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 stock. According to MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Stock Up 1.6%

The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The company has a fifty day simple moving average of $259.82 and a two-hundred day simple moving average of $255.42. The firm has a market capitalization of $223.36 billion, a PE ratio of 21.04, a PEG ratio of 2.31 and a beta of 0.70.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter last year, the firm posted $2.80 earnings per share. The business’s revenue for the quarter was up 1.1% on a year-over-year basis. Analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a dividend of $1.69 per share. 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 2.9%. International Business Machines’s dividend payout ratio (DPR) is 59.98%.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its position 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 worth $28,796,390,000 after acquiring an additional 1,439,824 shares in the last quarter. BlackRock Inc. bought a new stake in International Business Machines during the second quarter valued at about $21,586,659,000. State Street Corp grew its stake in International Business Machines by 1.0% in the fourth quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after purchasing an additional 518,321 shares during the last quarter. Geode Capital Management LLC raised its holdings in International Business Machines by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after purchasing an additional 336,069 shares in the last quarter. Finally, Capital World Investors raised its holdings in International Business Machines by 29.2% in the fourth 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. 58.96% of the stock is currently owned by 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.