International Business Machines (NYSE:IBM) Shares Up 1.8% – Here’s Why

International Business Machines Corporation (NYSE:IBM) shares were up 1.8% on Wednesday. The company traded as high as $258.59 and last traded at $254.50. Approximately 3,671,645 shares were traded during mid-day trading, a decline of 50% from the average session volume of 7,347,616 shares. The stock had previously closed at $250.04.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s Heron r2 quantum processor was used in a trial of Quantum X Labs’ encryption protocol. The demonstration suggests IBM’s quantum infrastructure could have practical applications in secure communications, though broader commercial adoption remains unproven. International Business Machines (IBM) Puts Quantum Encryption To Work On Heron R2
• Positive Sentiment: IBM’s AI product launches and renewed US Open AI and cloud partnership through 2031 add to its growth opportunities in AI, security and infrastructure. How Investors Are Reacting To IBM (IBM) AI Product Launches
• Negative Sentiment: A recent analysis cited AI disruption fears, margin pressure and stiff competition behind IBM’s 18.5% decline over the past year. It also noted countervailing support from hybrid-cloud demand and rising earnings estimates. IBM Plummets 18.5% in the Past Year: Time to Reassess the Stock?
• Negative Sentiment: A comparison with Salesforce highlighted IBM’s slower and more uneven revenue growth, raising questions about the consistency of its expansion. Salesforce vs. IBM: Comparing Consistent Revenue Expansion Against Slow Sales Growth

Wall Street Analysts Forecast Growth

Several analysts have recently commented on IBM shares. Yorkville Ives began coverage on International Business Machines in a report on Monday, October 5th. They issued an “outperform” rating and a $275.00 price target for the company. Jefferies Financial Group upped their price objective on International Business Machines from $270.00 to $280.00 and gave the stock a “buy” rating in a report on Thursday, October 22nd. Citigroup increased their price objective on International Business Machines from $245.00 to $280.00 and gave the stock a “buy” rating in a research report on Thursday, October 22nd. BMO Capital Markets raised their target price on International Business Machines from $230.00 to $265.00 and gave the company a “market perform” rating in a report on Thursday, October 22nd. Finally, Barclays raised their target price on International Business Machines from $262.00 to $277.00 and gave the company an “overweight” rating in a report on Thursday, October 22nd. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $266.12.

International Business Machines Trading Up 1.8%

The firm has a market cap of $240.53 billion, a price-to-earnings ratio of 21.70, a PEG ratio of 2.49 and a beta of 0.78. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.80 and a current ratio of 0.85. The business has a fifty day moving average of $235.88 and a two-hundred day moving average of $249.39.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.85 by $0.10. The company had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. International Business Machines’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the business earned $2.65 earnings per share. As a group, equities analysts expect that International Business Machines Corporation will post 12.41 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be given a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. International Business Machines’s payout ratio is currently 57.63%.

Insider Buying and Selling

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in shares of International Business Machines during the 2nd quarter worth about $21,586,659,000. State Street Corp grew its holdings in shares of International Business Machines by 2.7% during the second quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock worth $15,760,430,000 after buying an additional 1,450,562 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of International Business Machines in the second quarter valued at approximately $4,214,868,000. Bank of New York Mellon Corp acquired a new position in shares of International Business Machines in the second quarter valued at approximately $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of International Business Machines by 0.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock valued at $2,143,245,000 after buying an additional 53,388 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 (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.