International Business Machines (NYSE:IBM) Price Target Cut to $247.00 by Analysts at Morgan Stanley

International Business Machines (NYSE:IBM) had its price objective trimmed by Morgan Stanley from $304.00 to $247.00 in a research report released on Wednesday morning,Benzinga reports. The firm currently has an equal weight rating on the technology company’s stock.

Several other equities research analysts have also commented on the stock. JPMorgan Chase & Co. boosted their price target on shares of International Business Machines from $312.00 to $317.00 and gave the stock a “neutral” rating in a report on Thursday, January 29th. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. Evercore upped their price target on shares of International Business Machines from $330.00 to $345.00 and gave the stock an “outperform” rating in a research report on Thursday, January 29th. DZ Bank upgraded International Business Machines to a “hold” rating in a report on Wednesday, February 11th. Finally, Wedbush reissued an “outperform” rating and set a $340.00 target price on shares of International Business Machines in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, International Business Machines presently has an average rating of “Moderate Buy” and a consensus target price of $320.87.

International Business Machines Price Performance

Shares of International Business Machines stock opened at $237.75 on Wednesday. The firm has a market cap of $222.24 billion, a PE ratio of 21.32, a P/E/G ratio of 2.30 and a beta of 0.69. International Business Machines has a twelve month low of $214.50 and a twelve month high of $324.90. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The business has a 50-day moving average price of $289.56 and a 200 day moving average price of $283.85.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. The company had revenue of $19.69 billion for the quarter, compared to the consensus estimate of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.International Business Machines’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.92 earnings per share. Sell-side analysts predict that International Business Machines will post 10.78 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be paid a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, February 10th. International Business Machines’s dividend payout ratio (DPR) is 60.27%.

Insider Activity at International Business Machines

In related news, Director David N. Farr purchased 1,000 shares of the company’s stock in a transaction dated Friday, January 30th. The stock was acquired at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the transaction, the director directly owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. This trade represents a 12.11% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Michael Miebach purchased 434 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The stock was bought at an average cost of $233.33 per share, with a total value of $101,265.22. Following the acquisition, the director owned 434 shares of the company’s stock, valued at approximately $101,265.22. The trade was a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have bought 1,484 shares of company stock worth $417,157. Insiders own 0.18% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC boosted its holdings in International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock valued at $4,619,000 after purchasing an additional 2,323 shares during the last quarter. Sivia Capital Partners LLC raised its position in shares of International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after buying an additional 186 shares during the period. Purkiss Capital Advisors LLC acquired a new position in International Business Machines in the second quarter valued at approximately $202,000. Howard Capital Management Inc. increased its stake in International Business Machines by 21.7% during the second quarter. Howard Capital Management Inc. now owns 6,425 shares of the technology company’s stock worth $1,894,000 after acquiring an additional 1,146 shares during the last quarter. Finally, James Investment Research Inc. acquired a new stake in International Business Machines during the second quarter worth $219,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

Key International Business Machines News

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

• Positive Sentiment: Analysts defend stock and upgrade stance — UBS moved IBM to Neutral from Sell, and other firms (Wedbush, Evercore/Jefferies) have called the recent drop overdone, framing the pullback as a buying opportunity. This reduced downside pressure and supported the rebound. IBM no longer a Sell, says UBS as analysts upgrade stock
• Positive Sentiment: New government contract — IBM won a DoW Defense Commissary Agency contract (ceiling $112M) to modernize electronic shelf labels, which is a tangible revenue/contract win in infrastructure and services. IBM Awarded Defense Commissary Agency Contract
• Positive Sentiment: Insider purchases — Two board directors disclosed open-market buys (Michael Miebach: 434 shares; Michelle J. Howard: 50 shares). Director buying often signals management/board confidence and can reassure investors. SEC filing — Miebach purchase SEC filing — Howard purchase
• Neutral Sentiment: Mixed analyst price-target moves — Morgan Stanley cut its price target to $247 with an “equal weight” rating, reflecting more cautious near-term sentiment even as some firms raise targets. This creates mixed signals for investors. Morgan Stanley price target change
• Neutral Sentiment: Market narrative vs fundamentals — Several outlets argue the Feb. 23 selloff was an overreaction given IBM’s recent beat on Q4 results, strong free cash flow and product/AI positioning; but the debate keeps volatility elevated. IBM’s Steep Drop on AI Fears May Be an Overreaction
• Negative Sentiment: AI disruption fear remains a headline risk — Anthropic’s Claude Code announcement sparked a sharp 13% one-day decline by suggesting automation of COBOL modernization, which pressured IBM’s legacy mainframe/consulting revenue narrative and triggered sector contagion. That perceived threat still hangs over sentiment. IBM posts steepest daily drop after Anthropic Claude Code

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.