International Business Machines (NYSE:IBM) Stock Price Down 1.7% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM)’s stock price was down 1.7% during trading on Wednesday . The company traded as low as $228.96 and last traded at $230.15. 4,606,716 shares were traded during mid-day trading, a decline of 42% from the average session volume of 7,936,592 shares. The stock had previously closed at $234.19.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Quantum computing expansion: IBM completed its acquisition of HRL Laboratories, adding expertise in quantum computing, sensing, advanced communications, materials science and manufacturing. The deal could strengthen IBM’s long-term quantum-computing position and support future commercial applications. IBM Completes Acquisition of HRL Laboratories to Accelerate the Future of Quantum
• Positive Sentiment: New quantum milestone: A reported IBM quantum-computing breakthrough is reinforcing the company’s long-term technology narrative. Investors may view progress in quantum as a potential growth opportunity, although meaningful revenue impact is likely still several years away. IBM Just Hit a New Quantum Computing Milestone
• Positive Sentiment: More flexible mainframes: IBM introduced a dual-architecture processor for Z and LinuxONE systems that can run IBM and Arm instructions on the same chip. The move broadens software compatibility and could help IBM attract AI and other workloads to its mainframe platform. What Could IBM Gain From Its First Dual Architecture Mainframe Processor?
• Neutral Sentiment: Analyst commentary is more favorable: Jim Cramer said IBM is performing better than its reputation suggests and called it a “hated” stock that deserves more credit. The remarks may support sentiment but do not change IBM’s earnings outlook. Jim Cramer Says IBM Is a Hated Stock That Deserves Better
• Negative Sentiment: Growth concerns remain the main overhang: Recent analysis highlights only about 1% revenue growth and a sharp decline in mainframe sales, making IBM’s quantum and AI initiatives look more like long-term opportunities than immediate earnings drivers. IBM Stock Down 21% YTD: Should You Buy After Recent Quantum Breakthrough?
• Negative Sentiment: Legal-investigation headline: Bleichmar Fonti & Auld announced an investigation into potential securities-law violations following IBM’s stock decline. The notice is not an allegation that wrongdoing occurred, but it adds reputational and headline risk. IBM Securities Notice

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on IBM shares. Oppenheimer downgraded International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. Sanford C. Bernstein reiterated a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Wall Street Zen lowered shares of International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, July 18th. Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. decreased their price target on shares of International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Sixteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $265.40.

International Business Machines Stock Down 1.7%

The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company has a 50 day simple moving average of $245.71 and a two-hundred day simple moving average of $249.59. The company has a market capitalization of $216.83 billion, a P/E ratio of 20.42, a PEG ratio of 2.27 and a beta of 0.70.

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 business 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 company’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period last year, the company earned $2.80 EPS. As a group, equities analysts predict that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Basepoint Wealth LLC purchased a new stake in International Business Machines in the 4th quarter worth about $25,000. Portus Wealth Advisors LLC purchased a new position in shares of International Business Machines during the first quarter valued at approximately $26,000. Harborfront Financial Group LLC purchased a new position in shares of International Business Machines during the second quarter valued at approximately $27,000. Joseph Group Capital Management bought a new position in shares of International Business Machines during the fourth quarter valued at approximately $28,000. Finally, Cornerstone Financial Management LLC bought a new position in shares of International Business Machines during the fourth quarter valued at approximately $28,000. Institutional investors own 58.96% of the company’s stock.

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.