International Business Machines (NYSE:IBM) Trading Down 3% After Analyst Downgrade

International Business Machines Corporation (NYSE:IBM)’s share price was down 3% during mid-day trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $291.00 to $250.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. International Business Machines traded as low as $210.22 and last traded at $212.54. 13,070,110 shares were traded during trading, an increase of 62% from the average daily volume of 8,048,274 shares. The stock had previously closed at $219.05.

A number of other brokerages have also recently issued reports on IBM. Royal Bank Of Canada restated an “outperform” rating on shares of International Business Machines in a report on Tuesday, June 23rd. Roth Capital reiterated a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Citigroup cut their target price on shares of International Business Machines from $375.00 to $255.00 and set a “buy” rating on the stock in a report on Friday. Oppenheimer lowered shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday. Finally, Wedbush set a $350.00 price objective on shares of International Business Machines in a research report on Tuesday, June 2nd. Fifteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, International Business Machines presently has a consensus rating of “Moderate Buy” and a consensus price target of $292.89.

Trending Headlines about International Business Machines

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

• Positive Sentiment: JPMorgan cut its price target on IBM but kept an overweight rating, signaling it still sees meaningful upside from current levels. Benzinga source
• Positive Sentiment: IBM continues to launch new AI-focused products, including expanded Power server offerings aimed at enterprise AI workloads, which supports the long-term growth narrative. Article title
• Neutral Sentiment: Several commentators argue IBM may be oversold after the selloff, but they remain cautious about calling it a clear buy before more earnings clarity arrives. Article title
• Negative Sentiment: IBM’s preliminary Q2 report missed expectations and implied softer near-term demand, prompting multiple analysts to cut estimates and price targets. Article title
• Negative Sentiment: Law firms have begun securities-fraud investigations after the sudden drop, adding legal overhang and investor uncertainty. Article title

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Family CFO Inc bought a new stake in shares of International Business Machines during the fourth quarter worth $25,000. Basepoint Wealth LLC bought a new stake in International Business Machines in the 4th quarter valued at $25,000. Portus Wealth Advisors LLC acquired a new position in International Business Machines in the 1st quarter worth $26,000. Joseph Group Capital Management acquired a new position in International Business Machines in the 4th quarter worth $28,000. Finally, Cornerstone Financial Management LLC bought a new position in International Business Machines during the 4th quarter worth about $28,000. Institutional investors own 58.96% of the company’s stock.

International Business Machines Price Performance

The company has a 50 day simple moving average of $264.17 and a 200-day simple moving average of $263.94. The stock has a market cap of $199.76 billion, a price-to-earnings ratio of 18.79, a P/E/G ratio of 2.06 and a beta of 0.68. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last issued its quarterly 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. The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.60 earnings per share. Research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 3.2%. The ex-dividend date was Friday, May 8th. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is presently 59.77%.

About International Business Machines

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.