International Business Machines (NYSE:IBM) Shares Down 1.2% – Time to Sell?

International Business Machines Corporation (NYSE:IBM) traded down 1.2% during trading on Tuesday . The company traded as low as $209.18 and last traded at $210.4370. 11,597,370 shares were traded during trading, an increase of 44% from the average daily volume of 8,072,657 shares. The stock had previously closed at $213.00.

International Business Machines News Summary

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

• Positive Sentiment: Some analysts now say IBM may be undervalued after the sharp selloff, suggesting long-term investors could see upside if management confirms its growth thesis and AI/consulting demand remains solid. IBM (IBM) Stock Looks Like A Bargain At Current Levels
• Neutral Sentiment: Investors are waiting for IBM’s full Q2 results to see whether management can restore confidence after the preliminary miss and address concerns about pipeline strength, AI spending, and dividend sustainability. IBM to Report Full Q2 Results After Its Historic Stock Crash – Here’s What Investors Will Watch
• Negative Sentiment: IBM faces multiple securities-law investigations and investor alerts after its guidance cut and sharp stock plunge, adding legal overhang and increasing skepticism about management’s execution. International Business Machines Corporation (IBM) Securities Investigation Notice
• Negative Sentiment: Analysts have cut price targets after IBM’s surprise profit warning, reflecting concerns that near-term demand and profitability are deteriorating more than expected. IBM Stock: Analysts Cut Targets After Company’s Surprise Profit Warning

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Stifel Nicolaus dropped their target price on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a research note on Monday. Wedbush set a $350.00 price target on shares of International Business Machines in a report on Tuesday, June 2nd. Susquehanna assumed coverage on International Business Machines in a research note on Friday, July 10th. They issued a “neutral” rating and a $303.00 price objective on the stock. Morgan Stanley increased their price objective on International Business Machines from $267.00 to $293.00 and gave the company an “equal weight” rating in a report on Tuesday, July 14th. Finally, Oppenheimer downgraded International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Fifteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $281.39.

International Business Machines Trading Down 1.2%

The firm has a fifty day simple moving average of $263.63 and a two-hundred day simple moving average of $262.66. The stock has a market cap of $197.79 billion, a PE ratio of 18.61, a PEG ratio of 2.28 and a beta of 0.68. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.10. The company had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.60 earnings per share. As a group, equities analysts expect that International Business Machines Corporation will post 12.28 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a $1.69 dividend. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s payout ratio is currently 59.77%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of IBM. Vanguard Group Inc. increased its holdings in International Business Machines by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock valued at $28,796,390,000 after purchasing an additional 1,439,824 shares during the period. State Street Corp increased its stake in shares of International Business Machines by 1.0% during the fourth quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after buying an additional 518,321 shares during the period. Geode Capital Management LLC raised its holdings in shares of International Business Machines by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock valued at $6,679,105,000 after acquiring an additional 336,069 shares in the last quarter. Capital World Investors raised its holdings in shares of International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after acquiring an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE lifted its stake in International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after acquiring an additional 1,049,602 shares during the period. 58.96% of the stock is owned by 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.