International Business Machines (NYSE:IBM) Shares Down 3.2% – What’s Next?

International Business Machines Corporation (NYSE:IBM) dropped 3.2% on Friday . The stock traded as low as $229.38 and last traded at $230.0930. 13,323,971 shares were traded during trading, an increase of 73% from the average daily volume of 7,705,939 shares. The stock had previously closed at $237.75.

More International Business Machines News

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

• Positive Sentiment: IBM subsidiary Anderon finalized a roughly $1 billion CHIPS Act award to support a quantum wafer foundry in Albany, New York. IBM is reportedly matching the funding, and early wafer production could strengthen its position in quantum infrastructure, although the near-term financial impact remains uncertain. IBM Lands $1 Billion Quantum Foundry Award
• Positive Sentiment: IBM expanded its AI governance offering through a collaboration with CUBE, integrating real-time regulatory intelligence into watsonx.governance. The partnership may improve IBM’s enterprise AI positioning as companies face growing compliance requirements. CUBE and IBM AI Governance Collaboration
• Neutral Sentiment: Analysts’ median price target is reported at $315, well above recent trading levels, but targets may not capture the market’s concerns about slowing growth and delayed software deals. Institutional positioning was mixed, with major funds both adding and reducing IBM holdings.
• Negative Sentiment: IBM’s software growth slowed in the second quarter. Recurring revenue, Red Hat and data products could provide support, but weakness in Transaction Processing remains a concern for the company’s ability to sustain its software-led growth strategy. IBM Software Growth Slows
• Negative Sentiment: Investors are still digesting IBM’s reduced 2026 constant-currency revenue-growth outlook of 4% to 5%, down from a prior expectation above 5%. Second-quarter infrastructure revenue fell 7%, while IBM Z revenue dropped 42%, highlighting weaker mainframe trends and contributing to the stock’s decline. IBM Softer 2026 Outlook

Analysts Set New Price Targets

IBM has been the topic of several recent analyst reports. Jefferies Financial Group dropped their price target on International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a research report on Tuesday, July 21st. Craig Hallum began coverage on International Business Machines in a research report on Wednesday, August 19th. They issued a “buy” rating for the company. Needham & Company LLC initiated coverage on shares of International Business Machines in a research note on Wednesday, June 3rd. They issued a “buy” rating on the stock. Wedbush set a $350.00 target price on shares of International Business Machines in a research report on Tuesday, June 2nd. Finally, BMO Capital Markets cut their target price on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating for the company in a research note on Thursday, July 23rd. Seventeen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus price target of $265.16.

International Business Machines Price Performance

The stock has a market cap of $216.78 billion, a P/E ratio of 20.42, a price-to-earnings-growth ratio of 2.26 and a beta of 0.71. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The company’s fifty day simple moving average is $232.30 and its 200-day simple moving average is $246.70.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. The business had revenue of $17.16 billion for the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.80 earnings per share. As a group, sell-side analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

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

Insider Buying and Selling

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

Institutional Investors Weigh In On International Business Machines

Institutional investors and hedge funds have recently made changes to their positions in the company. Assetmark Inc. boosted its holdings in International Business Machines by 24.8% in the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock valued at $15,624,000 after acquiring an additional 12,791 shares during the last quarter. Rice Partnership LLC purchased a new position in shares of International Business Machines in the 4th quarter worth about $3,317,000. Sage Investment Advisers LLC acquired a new position in shares of International Business Machines in the 4th quarter valued at about $4,101,000. Flputnam Investment Management Co. acquired a new position in shares of International Business Machines in the 2nd quarter valued at about $15,237,000. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund purchased a new stake in shares of International Business Machines during the 4th quarter worth about $10,039,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.