International Business Machines (NYSE:IBM) Upgraded to “Neutral” at UBS Group

UBS Group upgraded shares of International Business Machines (NYSE:IBM) from a sell rating to a neutral rating in a research note issued to investors on Wednesday morning, Marketbeat Ratings reports. They currently have $236.00 target price on the technology company’s stock.

A number of other brokerages also recently weighed in on IBM. JPMorgan Chase & Co. lifted their target price on International Business Machines from $312.00 to $317.00 and gave the stock a “neutral” rating in a report on Thursday, January 29th. Weiss Ratings reiterated a “buy (b)” rating on shares of International Business Machines in a report on Thursday, January 22nd. Oppenheimer set a $380.00 price objective on shares of International Business Machines and gave the stock an “outperform” rating in a report on Thursday, January 29th. Wall Street Zen downgraded International Business Machines from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Finally, Royal Bank Of Canada set a $361.00 price target on International Business Machines in a research report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $320.87.

International Business Machines Price Performance

Shares of IBM opened at $237.75 on Wednesday. The company has a debt-to-equity ratio of 1.67, a current ratio of 0.96 and a quick ratio of 0.92. International Business Machines has a 1 year low of $214.50 and a 1 year high of $324.90. The business has a 50-day moving average of $289.56 and a 200-day moving average of $283.85. The company has a market capitalization of $222.24 billion, a price-to-earnings ratio of 21.32, a price-to-earnings-growth ratio of 2.30 and a beta of 0.69.

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 firm had revenue of $19.69 billion for the quarter, compared to the consensus estimate of $19.23 billion. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.92 EPS. As a group, equities research analysts anticipate that International Business Machines will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

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

Insider Buying and Selling

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

Institutional Investors Weigh In On International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Family CFO Inc purchased a new stake in shares of International Business Machines during the 4th quarter valued at approximately $25,000. Basepoint Wealth LLC purchased a new stake in International Business Machines during the 4th quarter worth about $25,000. Winnow Wealth LLC bought a new position in International Business Machines in the 2nd quarter worth about $27,000. Mountain Hill Investment Partners Corp. purchased a new position in International Business Machines during the 3rd quarter valued at about $28,000. Finally, Joseph Group Capital Management purchased a new position in International Business Machines during the fourth quarter valued at approximately $28,000. Hedge funds and other institutional investors own 58.96% of the company’s stock.

More 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.