International Business Machines Corporation (NYSE:IBM – Get Free Report) shares were up 1.3% during mid-day trading on Tuesday . The stock traded as high as $234.44 and last traded at $234.0170. 2,999,432 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 7,957,095 shares. The stock had previously closed at $231.04.
Key Headlines Impacting International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: Dual-architecture mainframe chip strengthens IBM’s AI and infrastructure story. IBM and Arm unveiled a processor for IBM Z and LinuxONE systems that can execute IBM and Arm instructions on the same chip. The design could broaden IBM’s software ecosystem, support Arm-native applications and make its mainframes more flexible for enterprise AI workloads. IBM’s Advanced Processor Could Shape the Future of Enterprise Computing
- Positive Sentiment: Arm-related demand is providing an external validation point. Arm shares rose following the expanded IBM partnership and reports of substantial AI-related CPU orders, highlighting potential commercial momentum for the new architecture. Arm Holdings Stock Surges on IBM Deal and AGI CPU Orders
- Positive Sentiment: IBM continues to build its quantum-computing platform. The completed acquisition of HRL Laboratories adds expertise in quantum computing, sensing, materials science and advanced manufacturing. IBM also recently connected modular cryogenic systems, supporting its longer-term fault-tolerant quantum roadmap. IBM Completes Acquisition of HRL Laboratories
- Positive Sentiment: Enterprise AI expectations remain supportive. IBM’s OpenAI partnership for IBM Consulting Advantage and its outlook for 4%–5% constant-currency revenue growth and approximately $1 billion of year-over-year free-cash-flow growth are encouraging investors to reassess its growth prospects. Analyst price targets have a median of $315, above recent trading levels. Why IBM Stock Is Up Today
- Neutral Sentiment: IBM’s US Open fan activations and new research on AI-enhanced sports experiences reinforce its marketing position in AI and cloud, but are unlikely to materially affect near-term earnings. IBM Brings AI-Powered US Open Fan Experience Back
- Negative Sentiment: Quantum skepticism remains a risk. BTIG reportedly questioned the commercial significance and timing of IBM’s quantum milestone, limiting enthusiasm for an initiative that is still largely a long-term opportunity. IBM Stock Falls as BTIG Questions Quantum Milestone
- Negative Sentiment: A securities-law firm announced an investigation related to IBM’s prior stock decline, creating a potential headline and legal-overhang risk, although no findings of wrongdoing were reported. IBM Securities Investigation Notice
Analyst Ratings Changes
A number of equities research analysts recently issued reports on the company. BMO Capital Markets lowered their price objective on International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research note on Thursday, July 23rd. Wedbush set a $350.00 target price on shares of International Business Machines in a research note on Tuesday, June 2nd. Argus dropped their price target on shares of 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. Royal Bank Of Canada reiterated an “outperform” rating and issued a $270.00 price objective on shares of International Business Machines in a research note on Tuesday, July 21st. Finally, Oppenheimer downgraded International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, International Business Machines has an average rating of “Moderate Buy” and an average target price of $265.40.
International Business Machines Trading Up 4.2%
The firm’s 50 day moving average is $245.07 and its 200 day moving average is $249.17. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The company has a market cap of $225.65 billion, a PE ratio of 21.27, a PEG ratio of 2.30 and a beta of 0.70.
International Business Machines (NYSE:IBM – Get Free Report) last posted its 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. The business had revenue of $17.16 billion for the quarter, compared to analysts’ expectations 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 period in the prior year, the company posted $2.80 EPS. On average, equities analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current year.
International Business Machines Dividend Announcement
The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.8%. The ex-dividend date is Monday, August 10th. International Business Machines’s payout ratio is presently 59.98%.
Institutional Trading of International Business Machines
Several institutional investors and hedge funds have recently modified their holdings of the business. Basepoint Wealth LLC purchased a new position in International Business Machines in the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC bought a new stake in shares of International Business Machines during the 1st quarter worth $26,000. Harborfront Financial Group LLC purchased a new position in International Business Machines in the second quarter worth $27,000. Joseph Group Capital Management bought a new position in International Business Machines in the fourth quarter valued at $28,000. Finally, Cornerstone Financial Management LLC purchased a new stake in International Business Machines during the fourth quarter valued at about $28,000. Hedge funds and other institutional investors 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.
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