International Business Machines (NYSE:IBM) Stock Price Down 2.7% – Time to Sell?

International Business Machines Corporation (NYSE:IBM)’s stock price fell 2.7% during mid-day trading on Thursday. The company traded as low as $245.72 and last traded at $247.3980. 5,244,844 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 7,337,301 shares. The stock had previously closed at $254.32.

More International Business Machines News

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

• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory introduced a co-design platform for quantum error correction, combining quantum and high-performance computing. The initiative supports the U.S. Department of Energy’s goal of advancing toward a scientifically relevant quantum computer by 2028; it may strengthen IBM’s position in quantum computing, though the announcement does not specify near-term revenue. Reuters article
• Neutral Sentiment: A global BFSI digital-transformation report projects the market will grow from $88.2 billion in 2024 to $220.2 billion by 2030 and lists IBM among companies pursuing AI-led opportunities. This suggests a sizable industry opportunity, but does not identify specific IBM contracts or expected sales. Yahoo Finance article
• Neutral Sentiment: IBM CEO Arvind Krishna said running AI can cost more than training it and warned that rationing AI use is a poor strategy. The comments underscore the importance of managing inference costs, but the article’s headline alone gives no specific financial impact for IBM. Fortune article
• Negative Sentiment: Recent analysis cites AI-disruption fears, margin pressure and competition as risks for IBM. It also notes hybrid-cloud demand and rising earnings estimates as counterpoints, so the concerns are not the only factor in the investment outlook. Yahoo Finance article

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Daiwa Securities Group cut their price objective on shares of International Business Machines from $247.00 to $217.00 and set a “neutral” rating on the stock in a report on Wednesday, July 29th. The Goldman Sachs Group restated a “buy” rating and issued a $300.00 target price on shares of International Business Machines in a report on Thursday, October 22nd. Susquehanna upped their price target on shares of International Business Machines from $235.00 to $256.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 21st. BMO Capital Markets increased their price target on shares of International Business Machines from $230.00 to $265.00 and gave the stock a “market perform” rating in a research note on Thursday, October 22nd. Finally, Morgan Stanley lifted their price target on shares of International Business Machines from $238.00 to $240.00 and gave the company an “equal weight” rating in a report on Thursday, October 22nd. Nineteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $266.12.

International Business Machines Trading Down 2.7%

The business has a fifty day moving average price of $236.29 and a 200 day moving average price of $249.17. The company has a market capitalization of $233.82 billion, a PE ratio of 21.09, a P/E/G ratio of 2.46 and a beta of 0.78. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.80 and a current ratio of 0.85.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The business had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. During the same period in the previous year, the company posted $2.65 EPS. The company’s revenue was up 4.7% compared to the same quarter last year. Analysts expect that International Business Machines Corporation will post 12.41 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be issued a $1.69 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a yield of 2.7%. International Business Machines’s dividend payout ratio (DPR) is presently 57.63%.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.27% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds have recently made changes to their positions in the business. Friday Financial boosted its holdings in International Business Machines by 1.9% in the 2nd quarter. Friday Financial now owns 1,903 shares of the technology company’s stock worth $583,000 after acquiring an additional 35 shares during the period. Trinity Wealth Management LLC grew its position in International Business Machines by 2.3% in the second quarter. Trinity Wealth Management LLC now owns 1,695 shares of the technology company’s stock valued at $477,000 after acquiring an additional 38 shares in the last quarter. Pettinga Financial Advisors LLC raised its stake in shares of International Business Machines by 3.6% during the second quarter. Pettinga Financial Advisors LLC now owns 1,090 shares of the technology company’s stock valued at $307,000 after purchasing an additional 38 shares during the period. HHM Wealth Advisors LLC raised its stake in shares of International Business Machines by 4.6% during the second quarter. HHM Wealth Advisors LLC now owns 928 shares of the technology company’s stock valued at $261,000 after purchasing an additional 41 shares during the period. Finally, CKW Financial Group lifted its position in shares of International Business Machines by 2.1% during the third quarter. CKW Financial Group now owns 2,024 shares of the technology company’s stock worth $457,000 after purchasing an additional 41 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.