Traders Buy High Volume of Call Options on International Business Machines (NYSE:IBM)

International Business Machines Corporation (NYSE:IBM) was the target of unusually large options trading activity on Thursday. Investors purchased 65,072 call options on the stock. This is an increase of approximately 87% compared to the average daily volume of 34,820 call options.

International Business Machines Trading Up 5.3%

NYSE IBM opened at $281.76 on Friday. International Business Machines has a one year low of $203.51 and a one year high of $296.16. The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91. The company has a market capitalization of $261.86 billion, a price-to-earnings ratio of 45.74, a price-to-earnings-growth ratio of 4.12 and a beta of 0.71. The company’s 50-day simple moving average is $254.09 and its two-hundred day simple moving average is $257.72.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.65 by $0.15. The firm had revenue of $16.98 billion for the quarter, compared to the consensus estimate of $16.58 billion. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The company’s quarterly revenue was up 7.7% on a year-over-year basis. During the same period last year, the firm earned $2.43 earnings per share. International Business Machines has set its FY 2025 guidance at EPS. Equities analysts forecast that International Business Machines will post 10.78 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were paid a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.4%. The ex-dividend date was Friday, August 8th. International Business Machines’s payout ratio is 109.09%.

Wall Street Analyst Weigh In

IBM has been the topic of several recent analyst reports. UBS Group increased their price target on International Business Machines from $195.00 to $200.00 and gave the stock a “sell” rating in a report on Thursday, July 24th. The Goldman Sachs Group increased their target price on International Business Machines from $270.00 to $310.00 and gave the stock a “buy” rating in a research note on Wednesday, July 2nd. Royal Bank Of Canada lifted their target price on International Business Machines from $285.00 to $315.00 and gave the stock an “outperform” rating in a research report on Thursday, July 17th. Melius Research upgraded shares of International Business Machines to a “strong-buy” rating in a report on Monday, July 7th. Finally, Erste Group Bank lowered shares of International Business Machines from a “buy” rating to a “hold” rating in a report on Thursday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $275.00.

Hedge Funds Weigh In On International Business Machines

Large investors have recently added to or reduced their stakes in the company. Family CFO Inc purchased a new position in shares of International Business Machines in the 2nd quarter valued at approximately $25,000. Christopher J. Hasenberg Inc purchased a new position in shares of International Business Machines in the first quarter worth $27,000. Winnow Wealth LLC acquired a new stake in shares of International Business Machines during the second quarter worth $27,000. SSA Swiss Advisors AG acquired a new stake in shares of International Business Machines during the first quarter worth $28,000. Finally, Dagco Inc. purchased a new stake in shares of International Business Machines during the first quarter valued at $31,000. 58.96% of the stock is currently owned by institutional investors.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.