International Business Machines (NYSE:IBM) Stock Falls 1.1% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s stock price was down 1.1% during mid-day trading on Tuesday. The stock traded as low as $244.61 and last traded at $249.8260. 3,428,726 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 7,365,098 shares. The stock had previously closed at $252.51.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform to coordinate quantum and high-performance computing for quantum error correction. The effort supports a U.S. Department of Energy goal of advancing toward a scientifically relevant quantum computer by 2028, though commercial benefits are likely longer term. Reuters article
• Positive Sentiment: A report projects the global BFSI digital-transformation market will grow to $220.2 billion by 2030 and identifies IBM among companies competing to provide AI, cloud and automation solutions. This points to a sizable potential market, not guaranteed IBM revenue. Yahoo Finance article
• Neutral Sentiment: IBM CEO Arvind Krishna argued that rationing AI use risks losing ground, while noting that running AI can cost more than training it. The comments underscore the opportunity in inference workloads alongside the cost challenge of serving them. Fortune article
• Negative Sentiment: Recent analysis cites AI-disruption fears, margin pressure and stiff competition as concerns weighing on IBM, despite hybrid-cloud demand and improved earnings estimates. These risks may help explain investor caution. Yahoo Finance article

Wall Street Analyst Weigh In

IBM has been the subject of several research analyst reports. JPMorgan Chase & Co. lifted their target price on International Business Machines from $250.00 to $269.00 and gave the stock an “overweight” rating in a research note on Thursday, October 22nd. The Goldman Sachs Group reissued a “buy” rating and set a $300.00 target price on shares of International Business Machines in a report on Thursday, October 22nd. Susquehanna increased their price target on International Business Machines from $235.00 to $256.00 and gave the company a “neutral” rating in a research note on Wednesday, October 21st. Stifel Nicolaus raised their price target on International Business Machines from $235.00 to $260.00 and gave the company a “buy” rating in a report on Thursday, October 22nd. Finally, BMO Capital Markets lifted their price objective on shares of International Business Machines from $230.00 to $265.00 and gave the stock a “market perform” rating in a research report on Thursday, October 22nd. Nineteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and an average price target of $266.12.

International Business Machines Stock Performance

The company has a market cap of $233.82 billion, a P/E ratio of 20.66, a price-to-earnings-growth ratio of 2.50 and a beta of 0.78. The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 1.57. The stock has a 50 day moving average price of $236.64 and a two-hundred day moving average price of $248.88.

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

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be issued a dividend of $1.69 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. International Business Machines’s dividend payout ratio (DPR) is currently 57.63%.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

Hedge funds have recently bought and sold shares of the business. Maryland State Retirement & Pension System boosted its stake in International Business Machines by 13.7% in the 3rd quarter. Maryland State Retirement & Pension System now owns 57,729 shares of the technology company’s stock worth $12,696,000 after purchasing an additional 6,969 shares during the period. Ritholtz Wealth Management grew its holdings in International Business Machines by 6.7% during the 3rd quarter. Ritholtz Wealth Management now owns 22,510 shares of the technology company’s stock valued at $4,951,000 after buying an additional 1,415 shares in the last quarter. UNIVEST FINANCIAL Corp increased its position in shares of International Business Machines by 85.7% during the third quarter. UNIVEST FINANCIAL Corp now owns 6,639 shares of the technology company’s stock valued at $1,460,000 after buying an additional 3,064 shares during the period. NBH Bank increased its position in shares of International Business Machines by 4.0% during the third quarter. NBH Bank now owns 4,109 shares of the technology company’s stock valued at $904,000 after buying an additional 157 shares during the period. Finally, Joel Isaacson & Co. LLC increased its position in shares of International Business Machines by 2.5% during the third quarter. Joel Isaacson & Co. LLC now owns 23,807 shares of the technology company’s stock valued at $5,236,000 after buying an additional 575 shares during the period. 58.96% of the stock is owned by institutional investors.

About International Business Machines

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.