International Business Machines (NYSE:IBM) Stock Price Down 25.4% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s share price dropped 25.4% during mid-day trading on Tuesday . The company traded as low as $213.22 and last traded at $216.5850. 66,841,085 shares were traded during mid-day trading, an increase of 768% from the average session volume of 7,701,770 shares. The stock had previously closed at $290.23.

Key International Business Machines News

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

• Positive Sentiment: Some analysts still see long-term upside, with a few research notes and price targets suggesting the selloff may have created a valuation opportunity for patient investors.
• Positive Sentiment: IBM also announced new Power systems and software products aimed at improving enterprise productivity, flexibility, and automation, which could support future growth.
• Neutral Sentiment: The company said the full Q2 results will be released on July 22, so investors may stay focused on whether the preliminary miss was an isolated timing issue or a sign of a broader slowdown.
• Neutral Sentiment: IBM’s comments have also lifted some cybersecurity and AI infrastructure stocks, suggesting the market is re-pricing enterprise tech spending rather than abandoning AI themes altogether.
• Negative Sentiment: IBM’s preliminary Q2 revenue of $17.2 billion and adjusted EPS of $2.93 came in below estimates, triggering one of the worst stock selloffs in the company’s history.
• Negative Sentiment: Management acknowledged execution issues and delayed major deals, while HSBC downgraded the stock to Reduce and several law firms announced securities investigations, adding to investor concern.

Wall Street Analysts Forecast Growth

IBM has been the subject of several research reports. Bank of America boosted their price target on International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday. Wall Street Zen upgraded International Business Machines from a “sell” rating to a “hold” rating in a research report on Sunday, June 21st. Wolfe Research lowered International Business Machines to a “peer perform” rating in a research note on Tuesday, June 23rd. Finally, Barclays began coverage on International Business Machines in a report on Monday, June 1st. They issued an “overweight” rating and a $350.00 target price for the company. Fourteen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, International Business Machines currently has a consensus rating of “Moderate Buy” and an average target price of $307.17.

International Business Machines Stock Down 2.7%

The firm has a 50-day moving average of $264.41 and a two-hundred day moving average of $264.54. 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 company has a market capitalization of $198.55 billion, a PE ratio of 18.68, a price-to-earnings-growth ratio of 2.10 and a beta of 0.68.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts’ consensus estimates 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 company had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same quarter in the previous year, the business earned $1.60 earnings per share. The company’s revenue for the quarter was up 9.5% on a year-over-year basis. Equities research analysts predict that International Business Machines Corporation will post 12.43 earnings per share 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 dividend of $1.69 per share. This is a boost 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 3.2%. The ex-dividend date was Friday, May 8th. International Business Machines’s dividend payout ratio (DPR) is 59.77%.

Hedge Funds Weigh In On International Business Machines

Large investors have recently made changes to their positions in the stock. Norges Bank acquired a new position in shares of International Business Machines in the fourth quarter worth $2,446,429,000. Capital World Investors raised its stake in shares of International Business Machines by 29.2% in 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. Price T Rowe Associates Inc. MD raised its stake in shares of International Business Machines by 83.4% in 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 acquiring an additional 2,553,552 shares in the last quarter. Corient Private Wealth LLC boosted its holdings in 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 valued at $561,814,000 after purchasing an additional 1,484,026 shares during the period. Finally, Vanguard Group Inc. grew its stake 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 worth $28,796,390,000 after purchasing an additional 1,439,824 shares in the last quarter. 58.96% of the stock is currently 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.