International Business Machines (NYSE:IBM) Shares Down 4.8% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM) dropped 4.8% on Thursday . The company traded as low as $243.68 and last traded at $249.7190. Approximately 16,407,675 shares were traded during mid-day trading, an increase of 129% from the average daily volume of 7,173,927 shares. The stock had previously closed at $262.35.

Key International Business Machines News

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

• Positive Sentiment: IBM continued to expand its enterprise software footprint, including a successful IBM Maximo SaaS migration for a major Asia-Pacific resort operator, which highlights demand for its cloud and asset-management offerings. Sedin Technologies Completes IBM Maximo Application Suite SaaS Migration for Major Asia-Pacific Resort Operator Across Five Properties
• Positive Sentiment: IBM was also mentioned as a partner in ServiceNow’s expanding AI governance ecosystem, suggesting ongoing relevance in enterprise AI and workflow modernization initiatives. Is ServiceNow (NOW) Quietly Becoming the Core Orchestrator of Enterprise AI Governance?
• Neutral Sentiment: IBM unveiled new Z platform security tools, including zSecure Detection and Secret Manager, reinforcing its mainframe security story, but the announcement did not outweigh broader selling pressure. IBM (IBM) Stock Drops Over 5% as New Mainframe Security Suite Launches
• Negative Sentiment: IBM’s stock is being weighed down by a sector-wide read-through from Accenture’s revenue warning, which renewed concerns about demand in IT services ahead of IBM’s July 22 earnings report. Here’s why the IBM stock is falling after the Accenture earnings
• Negative Sentiment: Additional articles noted IBM’s sharp retreat as investors rotated out of IT services names after Accenture cut guidance, adding to recent downside momentum in the shares. Why Is IBM Stock Declining On Thursday?

Wall Street Analysts Forecast Growth

IBM has been the topic of several research reports. Stifel Nicolaus set a $290.00 target price on International Business Machines in a research note on Friday, May 22nd. DZ Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target on the stock in a research note on Friday, April 24th. Weiss Ratings raised shares of International Business Machines from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, June 9th. Roth Mkm reissued a “buy” rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Finally, Citigroup lifted their price objective on shares of International Business Machines from $285.00 to $375.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and an average target price of $304.17.

International Business Machines Stock Up 0.2%

The firm’s 50-day moving average price is $251.46 and its two-hundred day moving average price is $268.77. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The firm has a market cap of $234.71 billion, a PE ratio of 22.08, a P/E/G ratio of 2.58 and a beta of 0.67.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The firm had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same period last year, the firm posted $1.60 EPS. The company’s revenue was up 9.5% on a year-over-year basis. As a group, equities research analysts expect that International Business Machines Corporation will post 12.38 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were issued a dividend of $1.69 per share. The ex-dividend date of this dividend was Friday, May 8th. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. International Business Machines’s dividend payout ratio is 59.77%.

Institutional Trading of International Business Machines

Several institutional investors and hedge funds have recently made changes to their positions in the company. Family CFO Inc acquired a new position in International Business Machines during the fourth quarter worth approximately $25,000. Basepoint Wealth LLC purchased a new position in shares of International Business Machines during the fourth quarter worth approximately $25,000. Portus Wealth Advisors LLC acquired a new position in shares of International Business Machines in the 1st quarter valued at $26,000. Joseph Group Capital Management acquired a new position in shares of International Business Machines in the 4th quarter valued at $28,000. Finally, Cornerstone Financial Management LLC purchased a new stake in International Business Machines in the 4th quarter valued at $28,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

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.