International Business Machines Corporation (NYSE:IBM) Given Consensus Recommendation of “Moderate Buy” by Brokerages

International Business Machines Corporation (NYSE:IBM) has received an average rating of “Moderate Buy” from the twenty-seven brokerages that are covering the stock, Marketbeat Ratings reports. Nine equities research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $306.9444.

Several equities research analysts recently commented on IBM shares. HSBC upgraded shares of International Business Machines from a “reduce” rating to a “hold” rating and lifted their target price for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. BMO Capital Markets decreased their price target on shares of International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a research report on Thursday, April 23rd. Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a research report on Tuesday. Jefferies Financial Group began coverage on shares of International Business Machines in a research report on Tuesday. They issued a “buy” rating for the company. Finally, Oppenheimer decreased their price target on shares of International Business Machines from $380.00 to $320.00 and set an “outperform” rating for the company in a research report on Thursday, April 16th.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM introduced a new “nanostack” chip architecture at the 0.7 nm node, with roughly 100 billion transistors on a fingernail-sized chip. Analysts at Wedbush said the development supports IBM’s long-term hardware ambitions as AI computing demand rises. IBM quantum foundry plan adds to long-term hardware strategy: Wedbush
• Positive Sentiment: Multiple reports said the announcement could extend Moore’s Law and improve chip performance and energy efficiency, reinforcing IBM’s relevance in next-generation AI infrastructure. IBM unveils tech for chip smaller than 1 nanometer in AI computing push
• Positive Sentiment: Investor sentiment also improved after commentary that the breakthrough positions IBM as a possible long-term winner in AI hardware, helping fuel the stock’s recent momentum. IBM Unveils Prototype for Sub-1-Nanometer AI Chip. Why It Matters.
• Neutral Sentiment: Some coverage noted the technology is still a research prototype and may not reach production for years, so the commercial impact is not immediate. IBM (IBM) Stock Surges 6% on Revolutionary Sub-Nanometer Chip Technology
• Negative Sentiment: One article argued IBM still faces skepticism from investors over execution and longer-term growth, even after the chip news, which could temper enthusiasm. 3 Reasons to Avoid IBM and 1 Stock to Buy Instead

Hedge Funds Weigh In On International Business Machines

Several institutional investors and hedge funds have recently added to or reduced their stakes in IBM. CVA Family Office LLC raised its holdings in International Business Machines by 1.4% during the 4th quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock worth $708,000 after purchasing an additional 33 shares during the last quarter. Foster Group Inc. raised its holdings in International Business Machines by 1.3% during the 4th quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock worth $742,000 after purchasing an additional 33 shares during the last quarter. New Covenant Trust Company N.A. raised its holdings in International Business Machines by 3.8% during the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock worth $264,000 after purchasing an additional 33 shares during the last quarter. McGowan Group Asset Management Inc. raised its holdings in International Business Machines by 1.2% during the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock worth $798,000 after purchasing an additional 33 shares during the last quarter. Finally, Altman Advisors Inc. raised its holdings in International Business Machines by 0.3% during the 3rd quarter. Altman Advisors Inc. now owns 9,929 shares of the technology company’s stock worth $2,802,000 after purchasing an additional 34 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Trading Up 5.1%

IBM opened at $271.36 on Friday. The company’s 50 day moving average is $253.83 and its 200-day moving average is $267.26. International Business Machines has a 1-year low of $212.34 and a 1-year high of $332.46. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The company has a market cap of $255.05 billion, a P/E ratio of 23.99, a PEG ratio of 2.81 and a beta of 0.67.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same period last year, the company posted $1.60 EPS. The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. Equities research analysts predict that International Business Machines will post 12.39 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a $1.69 dividend. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date was Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 2.5%. International Business Machines’s dividend payout ratio is currently 59.77%.

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.