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

International Business Machines Corporation (NYSE:IBM) was the recipient of unusually large options trading on Friday. Traders purchased 108,601 call options on the stock. This represents an increase of approximately 35% compared to the average volume of 80,721 call options.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Piper Sandler upgraded International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Stifel Nicolaus dropped their price objective on International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a report on Monday, July 20th. Roth Capital restated a “buy” rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Wall Street Zen lowered International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, July 18th. Finally, Robert W. Baird began coverage on International Business Machines in a report on Tuesday. They set a “neutral” rating and a $230.00 target price for the company. Fifteen 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. According to data from MarketBeat.com, International Business Machines has an average rating of “Moderate Buy” and an average price target of $265.40.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Unusual options activity showed strong bullish interest, with traders buying 108,601 call options on IBM, about 35% above normal call volume. This suggests some investors are betting on a rebound.
• Positive Sentiment: Citigroup lowered its price target to $245 from $255 but kept a Buy rating, implying meaningful upside from current levels and signaling that some analysts still see value in the shares.
• Positive Sentiment: IBM announced a dividend of $1.69 per share, reinforcing its appeal to income-focused investors at a time when the stock has been under pressure.
• Neutral Sentiment: Recent commentary has turned split: some analysts and strategists view the post-earnings decline as a potential long-term opportunity, while others say IBM may be stuck in a holding pattern until growth reaccelerates. IBM: The Historic Stock Rout Is A Generational Opportunity
• Neutral Sentiment: IBM is still getting support from its long-term quantum computing strategy, including the announced acquisition of HRL Laboratories, which expands its quantum R&D capabilities. That could help sentiment, but the benefit is longer term rather than immediate.
• Negative Sentiment: The main reason the stock fell sharply is IBM’s Q2 report and lowered 2026 outlook: revenue missed expectations, mainframe sales weakened, and management cut full-year constant-currency revenue growth guidance after customers shifted spending toward AI infrastructure.
• Negative Sentiment: Shortly after the earnings slump, law firms announced securities-fraud investigations tied to IBM’s disclosures about the mainframe slowdown, adding legal overhang and uncertainty for shareholders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Brighton Jones LLC increased its holdings in shares of International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after buying 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 in the last quarter. Jump Financial LLC bought a new stake in shares of International Business Machines during the 2nd quarter worth $211,000. Ieq Capital LLC lifted its holdings in shares of International Business Machines by 2.2% during the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after acquiring an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP grew its position in International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after acquiring an additional 106 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Trading Up 3.6%

International Business Machines stock opened at $214.16 on Friday. The stock has a market cap of $201.28 billion, a P/E ratio of 19.00, a PEG ratio of 2.32 and a beta of 0.68. International Business Machines has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The firm’s fifty day moving average price is $262.92 and its 200-day moving average price is $260.50. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.76 and a current ratio of 0.79.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The company had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm’s quarterly revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the company earned $2.80 earnings per share. Equities research analysts forecast that International Business Machines will post 12.34 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 3.2%. International Business Machines’s dividend payout ratio (DPR) is presently 59.98%.

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.