International Business Machines (NYSE:IBM) Price Target Raised to $238.00

International Business Machines (NYSE:IBM) had its target price boosted by Morgan Stanley from $190.00 to $238.00 in a report published on Thursday morning,Benzinga reports. The brokerage currently has an equal weight rating on the technology company’s stock.

Several other equities research analysts also recently issued reports on the stock. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. HSBC lowered their price target on International Business Machines from $175.00 to $174.00 in a research report on Friday, July 24th. Wall Street Zen lowered International Business Machines from a “hold” rating to a “sell” rating in a research note on Saturday, September 12th. Argus dropped their price objective on International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a research note on Thursday, July 16th. Finally, Craig Hallum assumed coverage on International Business Machines in a research report on Wednesday, August 19th. They issued a “buy” rating for the company. Nineteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $254.96.

International Business Machines Stock Performance

Shares of IBM stock opened at $232.58 on Thursday. The company has a fifty day moving average price of $231.99 and a two-hundred day moving average price of $243.58. International Business Machines has a one year low of $199.19 and a one year high of $332.46. The stock has a market cap of $219.12 billion, a P/E ratio of 20.64, a P/E/G ratio of 2.21 and a beta of 0.73. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74.

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 company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.80 EPS. As a group, equities analysts predict that International Business Machines will post 12.34 EPS for the current year.

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Onyx Bridge Wealth Group LLC increased its position in International Business Machines by 59.9% during the third quarter. Onyx Bridge Wealth Group LLC now owns 12,920 shares of the technology company’s stock valued at $2,842,000 after acquiring an additional 4,841 shares during the last quarter. SteelPeak Wealth LLC raised its stake in shares of International Business Machines by 174.8% in the third quarter. SteelPeak Wealth LLC now owns 79,239 shares of the technology company’s stock valued at $17,427,000 after acquiring an additional 50,406 shares during the period. Founders Grove Wealth Partners LLC lifted its holdings in shares of International Business Machines by 21.1% in the 3rd quarter. Founders Grove Wealth Partners LLC now owns 1,016 shares of the technology company’s stock worth $223,000 after acquiring an additional 177 shares during the last quarter. Center For Asset Management LLC lifted its holdings in shares of International Business Machines by 31.3% in the 3rd quarter. Center For Asset Management LLC now owns 1,229 shares of the technology company’s stock worth $270,000 after acquiring an additional 293 shares during the last quarter. Finally, Robertson Stephens Wealth Management LLC lifted its holdings in shares of International Business Machines by 13.7% in the 3rd quarter. Robertson Stephens Wealth Management LLC now owns 11,205 shares of the technology company’s stock worth $2,464,000 after acquiring an additional 1,354 shares during the last quarter. 58.96% of the stock is owned by institutional investors.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Bank of America expects IBM to deliver a modest third-quarter earnings beat while maintaining its 2026 outlook. The bank reiterated its Buy rating and $280 price target, citing higher-margin software, improving profitability and strong free cash flow. IBM poised for modest third-quarter beat, says Bank of America
• Positive Sentiment: Analysts expect software revenue to benefit from AI innovation, strategic partnerships and expanding enterprise-cloud capabilities. Consulting revenue is also projected to show modest growth, supported by technology demand, AI partnerships and cybersecurity-related expansion. IBM software revenue earnings preview
• Positive Sentiment: IBM and Siemens are collaborating on IBM’s nanostack transistor architecture, combining IBM semiconductor research with Siemens’ design-automation and manufacturing software. The initiative reinforces IBM’s long-term investment in advanced chips and computing technology. Siemens joins IBM nanostack research effort
• Neutral Sentiment: IBM reports third-quarter results next week, and options traders are pricing in a potential move of roughly 8% after the release. The elevated implied volatility signals substantial uncertainty rather than a clearly bullish or bearish expectation. IBM options market expects major post-earnings move
• Neutral Sentiment: Morgan Stanley raised its IBM price target to $238 but maintained an Equal Weight rating, implying limited near-term upside at the referenced price. RBC separately reaffirmed its Outperform rating. RBC reaffirms IBM Outperform rating
• Negative Sentiment: Investor concerns remain about IBM’s valuation, rising debt and limited dividend growth. Commentary noted that the company’s long record of annual dividend increases has recently involved only small raises, potentially constraining its appeal to income-focused investors while it funds AI initiatives. IBM dividend and debt concerns

About International Business Machines

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.