International Business Machines (NYSE:IBM) Trading Up 1.1% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s stock price rose 1.1% on Friday . The company traded as high as $238.72 and last traded at $236.17. 3,832,659 shares traded hands during mid-day trading, a decline of 52% from the average daily volume of 8,005,579 shares. The stock had previously closed at $233.69.

Key International Business Machines News

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

• Positive Sentiment: Industry research projects the global hyperscale data-center market will expand from $162.79 billion in 2024 to $608.54 billion by 2030, driven by AI, machine learning and cloud-computing demand. This supports IBM’s infrastructure, consulting and hybrid-cloud opportunities, although the report is not an IBM-specific contract announcement. Hyperscale Data Center Market Surges to $608.54 billion
• Positive Sentiment: IBM’s modular cryogenic technology is designed to help scale its quantum systems toward 1,000 programmable qubits and support its Quantum Starling plans by 2029. The development strengthens IBM’s technology narrative and long-term growth potential, though commercial revenue benefits remain several years away. Can IBM Scale Quantum Computing With Its New Cryogenic Systems?
• Positive Sentiment: A power producer and Cohesive received an award for improving workplace safety using IBM Maximo, providing third-party recognition of the software’s industrial asset-management capabilities. The item is supportive of IBM’s enterprise-software credibility but does not indicate a material near-term financial impact. CEPR and Cohesive Receive Maximo Award
• Neutral Sentiment: A Zacks review notes that IBM has risen 13.1% since its latest earnings report, indicating continued investor support after the results. However, the company’s reported revenue missed expectations while earnings per share matched estimates, leaving valuation and execution important considerations. Why Is IBM Up Since Its Last Earnings Report?
• Negative Sentiment: Bleichmar Fonti & Auld announced an investigation into potential securities-law violations related to IBM’s prior stock decline. The notice appears to be an investor-solicitation announcement rather than a finding of wrongdoing, but it can weigh on sentiment and introduce potential legal risk. IBM Ongoing Investigation

Wall Street Analyst Weigh In

A number of research analysts recently commented on IBM shares. Morgan Stanley lowered their price objective on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 23rd. Robert W. Baird initiated coverage on International Business Machines in a research report on Tuesday, July 21st. They issued a “neutral” rating and a $230.00 target price for the company. Needham & Company LLC began coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating on the stock. Wolfe Research cut International Business Machines to a “peer perform” rating in a research report on Tuesday, June 23rd. Finally, Weiss Ratings downgraded International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Trading Up 1.1%

The firm has a market capitalization of $222.50 billion, a price-to-earnings ratio of 20.96, a price-to-earnings-growth ratio of 2.33 and a beta of 0.70. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The firm’s 50 day moving average is $247.90 and its 200 day moving average is $250.98.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the business posted $2.80 earnings per share. The firm’s quarterly revenue was up 1.1% compared to the same quarter last year. Equities analysts forecast that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders 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 dividend yield of 2.9%. International Business Machines’s payout ratio 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 stock. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its stake in International Business Machines by 424.6% in the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock worth $77,234,000 after purchasing an additional 211,040 shares during the period. Assetmark Inc. raised its stake in International Business Machines by 24.8% during the 1st quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock valued at $15,624,000 after purchasing an additional 12,791 shares during the period. GLOBALT Investments LLC GA lifted its holdings in shares of International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after purchasing an additional 2,930 shares in the last quarter. Rice Partnership LLC purchased a new stake in shares of International Business Machines in the fourth quarter valued at $3,317,000. Finally, Sage Investment Advisers LLC acquired a new stake in shares of International Business Machines in the fourth quarter worth $4,101,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.