International Business Machines (NYSE:IBM) Shares Gap Down – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $302.05, but opened at $285.84. International Business Machines shares last traded at $296.4230, with a volume of 1,515,148 shares changing hands.

More International Business Machines News

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

• Positive Sentiment: IBM continues to get credit for growth in quantum computing and AI, including new enterprise software tools and multi-agent capabilities that could support future revenue. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
• Positive Sentiment: The stock still has implied upside to Susquehanna’s target, suggesting analysts see value if IBM can convert its AI and quantum strengths into stronger earnings growth. Susquehanna coverage note
• Neutral Sentiment: IBM’s latest product updates for its Bob platform and other AI tools reinforce its enterprise strategy, but these launches are not yet enough to change the near-term investment view. IBM Upgrades Bob With Multi-Agent AI
• Negative Sentiment: Starbucks’ move to build internal AI tools to replace Microsoft and IBM software highlights a potential risk to IBM’s enterprise software revenue if other large customers follow suit. There Are So Many Reasons to Like IBM Right Now—Just Not Enough to Buy the Stock
• Negative Sentiment: Analysts remain cautious heading into IBM’s upcoming Q2 earnings, with concerns that AI could pressure parts of the consulting and mainframe business even as newer growth areas expand. Susquehanna Praises IBM’s Quantum and AI Growth but Rates the Stock a Hold – Here’s Why

Wall Street Analysts Forecast Growth

IBM has been the subject of several research analyst reports. Stifel Nicolaus set a $290.00 price objective on International Business Machines in a report on Friday, May 22nd. Wall Street Zen upgraded shares of International Business Machines from a “sell” rating to a “hold” rating in a research note on Sunday, June 21st. Morgan Stanley upgraded shares of International Business Machines from an “equal weight” rating to an “overweight” rating in a research note on Tuesday, June 23rd. Susquehanna assumed coverage on shares of International Business Machines in a report on Friday. They set a “neutral” rating and a $303.00 price objective for the company. Finally, Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Sixteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $306.28.

International Business Machines Stock Down 2.5%

The company’s 50 day moving average price is $263.77 and its two-hundred day moving average price is $266.17. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The firm has a market cap of $270.55 billion, a PE ratio of 25.45, a PEG ratio of 2.85 and a beta of 0.68.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data 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 analyst estimates of $15.60 billion. During the same period in the prior year, the business posted $1.60 EPS. International Business Machines’s revenue was up 9.5% on a year-over-year basis. On average, equities research analysts expect that International Business Machines Corporation will post 12.45 EPS for the current fiscal year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a $1.69 dividend. The ex-dividend date 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 yield of 2.3%. International Business Machines’s dividend payout ratio (DPR) is currently 59.77%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in IBM. Norges Bank purchased a new stake in International Business Machines in the 4th quarter worth approximately $2,446,429,000. Capital World Investors lifted its holdings in 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 purchasing an additional 4,976,756 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in International Business Machines by 83.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company’s stock valued at $1,663,847,000 after purchasing an additional 2,553,552 shares in the last quarter. Corient Private Wealth LLC boosted its position in shares of International Business Machines by 359.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company’s stock worth $561,814,000 after purchasing an additional 1,484,026 shares during the period. Finally, Vanguard Group Inc. increased its stake in shares of International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock worth $28,796,390,000 after purchasing an additional 1,439,824 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

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.