International Business Machines (NYSE:IBM) Shares Up 2.6% After Insider Buying Activity

International Business Machines Corporation (NYSE:IBM)’s stock price shot up 2.6% during mid-day trading on Monday following insider buying activity. The company traded as high as $316.64 and last traded at $314.5580. 4,547,910 shares were traded during mid-day trading, a decline of 1% from the average session volume of 4,614,638 shares. The stock had previously closed at $306.70.

Specifically, Director David N. Farr bought 1,000 shares of the company’s stock in a transaction that occurred on Friday, January 30th. The shares were acquired at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the acquisition, the director owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. The trade was a 12.11% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Wall Street Zen lowered International Business Machines from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. JPMorgan Chase & Co. boosted their target price 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. Stifel Nicolaus increased their price target on shares of International Business Machines from $325.00 to $340.00 and gave the company a “buy” rating in a research note on Thursday. Bank of America lifted their price objective on shares of International Business Machines from $315.00 to $335.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Finally, Morgan Stanley set a $304.00 price objective on International Business Machines in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $330.07.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM emphasizes enterprise AI and added PepsiCo’s chief to its board, reinforcing strategy and corporate governance as it pushes deeper into high-margin AI services. IBM Deepens Enterprise AI Push As Board Adds PepsiCo Chief
• Positive Sentiment: Markets are rewarding IBM’s recent quarterly beat and “robust” results, which underpin the view that AI-related revenue growth is accelerating. IBM Shares Surge on Robust Quarterly Performance
• Positive Sentiment: Analysts and price targets are trending higher (Stifel raised its target; a separate report noted a $345 target), supporting upside expectations. Why Stifel Says IBM Remains a Top Large-Cap Defensive AI Stock Price Target Raised to $345.00
• Positive Sentiment: High-profile bullish commentary (Jim Cramer and others) frames IBM as an undervalued, large-cap AI play, which can attract retail and momentum flows. Jim Cramer Says “IBM’s the Rare AI Winner…”
• Positive Sentiment: Insider buying (David Farr purchased shares) signals some confidence from within the company’s leadership circle. David Farr Acquires 1,000 Shares
• Neutral Sentiment: QuiverQuant data shows heavy institutional interest and mixed hedge‑fund moves, plus a range of analyst ratings—evidence of active repositioning rather than consensus direction. Quiver Quantitative IBM Data
• Neutral Sentiment: IBM won a UK defence deal to consolidate legacy systems into an AI platform — a meaningful government contract that supports long-term revenue visibility but will play out over time. Zacks: Federal Contracts and Growth
• Neutral Sentiment: Coverage on IBM’s role in quantum computing and ecosystem partnerships highlights longer-term optionality but is not an immediate earnings driver. TipRanks: Quantum Computing News
• Neutral Sentiment: Smaller ecosystem news (e.g., partnerships using IBM-based systems) supports platform adoption but has limited direct impact on IBM’s near-term revenue. Benzinga: Fusemachines Partnership

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. The stock has a fifty day simple moving average of $303.05 and a two-hundred day simple moving average of $283.38. The stock has a market cap of $294.03 billion, a price-to-earnings ratio of 28.21, a P/E/G ratio of 3.08 and a beta of 0.69.

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

International Business Machines Announces Dividend

The business 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 dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Tuesday, February 10th. International Business Machines’s payout ratio is presently 60.27%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of IBM. Family CFO Inc acquired a new stake in shares of International Business Machines during the fourth quarter valued at about $25,000. Winnow Wealth LLC bought a new position in International Business Machines in the 2nd quarter valued at approximately $27,000. Mountain Hill Investment Partners Corp. acquired a new stake in International Business Machines during the 3rd quarter worth approximately $28,000. Joseph Group Capital Management bought a new stake in International Business Machines during the 4th quarter worth approximately $28,000. Finally, SWAN Capital LLC acquired a new position in International Business Machines in the 3rd quarter valued at approximately $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

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.