International Business Machines Corporation (NYSE:IBM – Get Free Report)’s share price rose 3.9% during trading on Tuesday . The company traded as high as $235.31 and last traded at $235.0380. Approximately 7,506,864 shares changed hands during trading, a decline of 9% from the average session volume of 8,253,883 shares. The stock had previously closed at $226.31.
International Business Machines News Summary
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: FedRAMP authorization expands IBM’s government opportunity. 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 for mission-critical infrastructure and equipment. The approval could support new public-sector bookings and strengthens IBM’s position in regulated cloud markets. IBM Maximo Application Suite Achieves FedRAMP Moderate Authorization
- Positive Sentiment: Quantum computing remains a long-term catalyst. CEO Arvind Krishna said IBM expects quantum computing to begin making a meaningful contribution to revenue and profit around 2028 or 2029. The outlook reinforces IBM’s growth narrative, although the financial impact is still several years away. IBM CEO Predicts Quantum Computing Will Become a Meaningful Business
- Neutral Sentiment: IBM’s blockchain intellectual property sale provides strategic context. IBM reportedly sold nearly 1,000 blockchain patents to Circle, potentially monetizing intellectual property while allowing Circle to build regulated stablecoin infrastructure. The transaction may offer IBM proceeds and a partner ecosystem, but its direct effect on near-term revenue is unclear. Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure Race
- Negative Sentiment: Investor litigation investigations add an overhang. Two law firms announced investigations into whether IBM made misleading statements about a slowdown in its IBM Z mainframe business. Such announcements do not establish wrongdoing, but they raise potential legal costs and increase scrutiny following the stock’s recent weakness. IBM Securities Fraud Investigation
- Negative Sentiment: Kyndryl’s results highlighted IBM-related headwinds. Kyndryl reported growth in U.S. revenue and consulting, but continued declines tied to IBM-related business and workforce-rebalancing charges suggest pressure in portions of IBM’s legacy infrastructure ecosystem. Broader market leadership also shifted toward semiconductor and AI stocks, potentially reducing investor preference for IBM’s more mature businesses. Kyndryl Earnings Call Highlights
Wall Street Analysts Forecast Growth
A number of analysts have recently issued reports on IBM shares. HSBC set a $175.00 price target on International Business Machines and gave the stock a “reduce” rating in a research note on Thursday, July 16th. JPMorgan Chase & Co. reduced their price objective on International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a research report on Friday, July 17th. Roth Capital reissued a “buy” rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Wedbush set a $350.00 target price on International Business Machines in a research note on Tuesday, June 2nd. Finally, Susquehanna cut their price objective on shares of International Business Machines from $303.00 to $225.00 and set a “neutral” rating for the company in a research report on Friday, July 24th. Fifteen investment 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 currently has an average rating of “Moderate Buy” and a consensus target price of $265.40.
International Business Machines Trading Down 1.0%
The stock has a market cap of $220.01 billion, a price-to-earnings ratio of 20.72, a price-to-earnings-growth ratio of 2.31 and a beta of 0.70. 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 50 day moving average of $260.43 and a 200-day moving average of $255.93.
International Business Machines (NYSE:IBM – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. The business had revenue of $17.16 billion during 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%. The business’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter last year, the firm posted $2.80 earnings per share. On average, research analysts anticipate that International Business Machines Corporation will post 12.34 earnings per share for the current year.
International Business Machines Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is presently 59.98%.
Hedge Funds Weigh In On International Business Machines
A number of institutional investors and hedge funds have recently modified their holdings of the company. Lynch Asset Management Inc. purchased a new position in shares of International Business Machines in the 2nd quarter valued at about $3,754,000. SCS Capital Management LLC purchased a new stake in International Business Machines in the 2nd quarter valued at $9,254,000. CORDA Investment Management LLC. acquired a new stake in shares of International Business Machines during the second quarter worth about $1,202,000. Stonehaven Wealth & Tax Solutions LLC purchased a new position in shares of International Business Machines in the 2nd quarter valued at approximately $208,000. Finally, Sound Portfolio Advisors LLC purchased a new position in International Business Machines in the 2nd quarter valued at $416,000. 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.
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