International Business Machines (NYSE:IBM) Hits New 1-Year Low – Should You Sell?

International Business Machines Corporation (NYSE:IBM) shares hit a new 52-week low on Tuesday . The stock traded as low as $220.47 and last traded at $221.0230, with a volume of 781888 shares. The stock had previously closed at $223.55.

Key International Business Machines News

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

• Positive Sentiment: IBM launched two new IBM Cloud managed services, Red Hat AI Inference and OpenShift Virtualization, aimed at speeding AI adoption and securing virtual workloads. That could help deepen demand for IBM’s cloud and AI offerings. Can IBM’s Advanced AI and Virtualization Offerings Boost Its Shares?
• Positive Sentiment: IBM is also being highlighted for expanding its AI capabilities and blockchain-based trust features, which supports the idea that the company is positioning itself as an enterprise AI infrastructure provider rather than just a legacy tech vendor. International Business Machines Corporation (IBM): Using Blockchain to Build Trust In AI
• Positive Sentiment: IBM’s consulting message is also focused on faster AI execution in the real world, emphasizing senior-led delivery teams that turn AI strategy into results. That may reassure investors that IBM can monetize AI through services, not just software. A New Way to Make AI Actually Work in the Real World
• Neutral Sentiment: Several market commentary pieces note that IBM has pulled back from recent highs, but frame that decline as making the stock look potentially more attractive to value investors rather than signaling a new fundamental problem. Catching Falling Knives: Is It Time to Buy These Beaten-Down Stocks?
• Neutral Sentiment: One note says IBM’s price target was lowered, which could cap enthusiasm in the near term even though it does not necessarily change the company’s longer-term AI/cloud story. IBM Price Target Lowered by $30

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on IBM shares. Citigroup began coverage on International Business Machines in a research report on Friday, April 10th. They issued a “buy” rating and a $285.00 price target on the stock. UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 target price on the stock in a research note on Wednesday, February 25th. JPMorgan Chase & Co. dropped their target price on International Business Machines from $317.00 to $283.00 and set a “neutral” rating on the stock in a report on Wednesday, March 18th. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target for the company in a research note on Friday, April 24th. Finally, Wedbush reiterated an “outperform” rating and issued a $320.00 price objective on shares of International Business Machines in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $294.41.

International Business Machines Stock Performance

The stock’s 50-day moving average is $241.64 and its 200 day moving average is $276.07. The stock has a market cap of $205.27 billion, a price-to-earnings ratio of 19.31, a P/E/G ratio of 2.27 and a beta of 0.58. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. During the same period in the prior year, the business posted $1.60 EPS. The company’s revenue for the quarter was up 9.5% on a year-over-year basis. As a group, analysts predict that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 3.1%. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. International Business Machines’s dividend payout ratio is 59.77%.

Insider Activity at International Business Machines

In related news, Director Michael Miebach purchased 434 shares of the stock in a transaction dated Wednesday, February 25th. The shares were acquired at an average cost of $233.33 per share, with a total value of $101,265.22. Following the purchase, the director directly owned 434 shares in the company, valued at $101,265.22. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

A number of institutional investors have recently added to or reduced their stakes in IBM. Brighton Jones LLC grew 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 acquiring an additional 2,323 shares during the period. Sivia Capital Partners LLC raised its holdings in International Business Machines by 10.6% during the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock worth $571,000 after purchasing an additional 186 shares during the last quarter. Jump Financial LLC purchased a new stake in International Business Machines during the second quarter worth $211,000. Ieq Capital LLC boosted its position in International Business Machines by 2.2% during the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after purchasing an additional 843 shares in the last quarter. Finally, Vivaldi Capital Management LP grew its holdings 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 valued at $300,000 after purchasing an additional 106 shares during the last quarter. Hedge funds and other 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.