International Business Machines (NYSE:IBM) Stock Price Down 1.8% – Should You Sell?

International Business Machines Corporation (NYSE:IBM) fell 1.8% during trading on Thursday . The stock traded as low as $256.00 and last traded at $258.3580. 8,440,736 shares changed hands during trading, an increase of 16% from the average daily volume of 7,288,044 shares. The stock had previously closed at $262.96.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM introduced a new “nanostack” chip architecture at the 0.7 nm node, with roughly 100 billion transistors on a fingernail-sized chip. Analysts at Wedbush said the development supports IBM’s long-term hardware ambitions as AI computing demand rises. IBM quantum foundry plan adds to long-term hardware strategy: Wedbush
• Positive Sentiment: Multiple reports said the announcement could extend Moore’s Law and improve chip performance and energy efficiency, reinforcing IBM’s relevance in next-generation AI infrastructure. IBM unveils tech for chip smaller than 1 nanometer in AI computing push
• Positive Sentiment: Investor sentiment also improved after commentary that the breakthrough positions IBM as a possible long-term winner in AI hardware, helping fuel the stock’s recent momentum. IBM Unveils Prototype for Sub-1-Nanometer AI Chip. Why It Matters.
• Neutral Sentiment: Some coverage noted the technology is still a research prototype and may not reach production for years, so the commercial impact is not immediate. IBM (IBM) Stock Surges 6% on Revolutionary Sub-Nanometer Chip Technology
• Negative Sentiment: One article argued IBM still faces skepticism from investors over execution and longer-term growth, even after the chip news, which could temper enthusiasm. 3 Reasons to Avoid IBM and 1 Stock to Buy Instead

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on IBM shares. Roth Mkm reissued a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Wolfe Research lowered shares of International Business Machines to a “peer perform” rating in a report on Tuesday. HSBC raised International Business Machines from a “reduce” rating to a “hold” rating and increased their price target for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. KeyCorp cut International Business Machines to a “sector weight” rating in a report on Tuesday. Finally, Morgan Stanley upgraded International Business Machines from an “equal weight” rating to an “overweight” rating in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $306.94.

International Business Machines Stock Performance

The firm has a 50-day moving average price of $253.83 and a 200 day moving average price of $267.26. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The firm has a market capitalization of $255.05 billion, a PE ratio of 23.99, a price-to-earnings-growth ratio of 2.68 and a beta of 0.67.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping the consensus estimate 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 firm had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. During the same period in the previous year, the firm posted $1.60 EPS. International Business Machines’s revenue for the quarter was up 9.5% on a year-over-year basis. Research analysts expect that International Business Machines Corporation will post 12.39 earnings per share for the current year.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were issued a $1.69 dividend. 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 dividend on an annualized basis and a dividend yield of 2.5%. International Business Machines’s dividend payout ratio is currently 59.77%.

Institutional Trading of International Business Machines

Several hedge funds have recently modified their holdings of IBM. VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in shares of International Business Machines by 424.6% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock valued at $77,234,000 after acquiring an additional 211,040 shares during the last quarter. GLOBALT Investments LLC GA grew its holdings in International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after purchasing an additional 2,930 shares during the period. Waverton Investment Management Ltd grew its holdings in International Business Machines by 3.3% in the third quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company’s stock valued at $280,439,000 after purchasing an additional 32,072 shares during the period. Newbridge Financial Services Group Inc. increased its position in International Business Machines by 30.0% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after purchasing an additional 3,029 shares during the last quarter. Finally, Rice Partnership LLC acquired a new position in International Business Machines during the fourth quarter worth approximately $3,317,000. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Company Profile

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.