International Business Machines (NYSE:IBM) Shares Gap Up – Should You Buy?

International Business Machines Corporation (NYSE:IBM) shares gapped up before the market opened on Monday . The stock had previously closed at $297.80, but opened at $322.55. International Business Machines shares last traded at $311.3990, with a volume of 9,210,410 shares.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s $10 billion quantum-computing investment plan boosted investor enthusiasm by signaling a long-term push to lead in fault-tolerant quantum systems. IBM Commits More Than $10 Billion to Quantum Computing
• Positive Sentiment: Barclays initiated coverage with an Overweight rating and a $350 price target, while Wedbush also raised its target, suggesting Wall Street sees more upside despite the run-up. Wedbush lifts IBM price target as AI transformation fears give way to execution confidence
• Positive Sentiment: Coverage highlighting IBM as a top quantum-computing beneficiary in 2026 added to momentum, with investors viewing IBM as a potential leader in the sector. Why IBM Could Be One of the Biggest Quantum Computing Winners in 2026
• Neutral Sentiment: Recent articles also pointed to IBM’s stock being expensive after the rally, with some analysts flagging overvaluation risk as expectations rose quickly. IBM Stock Surges on Trump Video, $10B Quantum Bet: Analysts Flag Overvaluation Risk
• Neutral Sentiment: IBM also benefited from broader AI/software optimism after Nvidia-related commentary eased fears that AI would displace enterprise software vendors, supporting the stock’s move. Arm, IBM and Hewlett Packard soar as Nvidia chip ‘reinvention’ extends software rally

Analyst Ratings Changes

A number of research firms have recently commented on IBM. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price on the stock in a research report on Friday, April 24th. JPMorgan Chase & Co. cut their target price on International Business Machines from $317.00 to $283.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. Jefferies Financial Group cut their target price on International Business Machines from $370.00 to $320.00 and set a “buy” rating on the stock in a research report on Monday, April 20th. Weiss Ratings cut International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, May 21st. Finally, Citigroup reiterated a “buy” rating on shares of International Business Machines in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $299.17.

International Business Machines Price Performance

The stock has a market cap of $309.90 billion, a price-to-earnings ratio of 29.15, a PEG ratio of 3.32 and a beta of 0.67. The company has a 50-day moving average of $241.55 and a 200-day moving average of $270.75. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.10. The firm had revenue of $15.92 billion for the quarter, compared to analysts’ expectations 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 revenue for the quarter was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.60 EPS. As a group, equities research analysts predict that International Business Machines Corporation will post 12.4 earnings per share for the current 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 given a $1.69 dividend. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 2.1%. International Business Machines’s payout ratio is presently 59.77%.

Hedge Funds Weigh In On International Business Machines

Several institutional investors have recently added to or reduced their stakes in the stock. CVA Family Office LLC increased its position in International Business Machines by 1.4% in the 4th quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock valued at $708,000 after acquiring an additional 33 shares during the period. Foster Group Inc. increased its position in International Business Machines by 1.3% in the 4th quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock valued at $742,000 after acquiring an additional 33 shares during the period. New Covenant Trust Company N.A. increased its position in International Business Machines by 3.8% in the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock valued at $264,000 after acquiring an additional 33 shares during the period. McGowan Group Asset Management Inc. increased its position in International Business Machines by 1.2% in the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock valued at $798,000 after acquiring an additional 33 shares during the period. Finally, Marco Investment Management LLC increased its position in International Business Machines by 0.3% in the 3rd quarter. Marco Investment Management LLC now owns 10,774 shares of the technology company’s stock valued at $3,040,000 after acquiring an additional 34 shares during the period. Institutional investors and hedge funds 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.