International Business Machines (NYSE:IBM) Trading Down 1.3% Following Insider Selling

International Business Machines Corporation (NYSE:IBM) fell 1.3% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $235.09 and last traded at $235.78. 3,904,206 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 7,897,626 shares. The stock had previously closed at $238.79.

Specifically, SVP Robert David Thomas sold 25,000 shares of the company’s stock in a transaction on 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 in the company, valued at $11,009,296. This represents a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Analyst Upgrades and Downgrades

Several equities analysts have commented on IBM shares. Bank of America lifted their target price on shares of International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Jefferies Financial Group reduced their price target on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating for the company in a research report on Tuesday, July 21st. KeyCorp downgraded International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. cut their price target on International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Finally, Oppenheimer lowered shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $265.40.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

International Business Machines Stock Down 1.3%

The company has a market capitalization of $222.14 billion, a P/E ratio of 20.92, a price-to-earnings-growth ratio of 2.26 and a beta of 0.70. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The stock’s fifty day moving average is $244.85 and its 200 day moving average is $248.74.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.80 earnings per share. Research analysts predict that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 2.9%. International Business Machines’s dividend payout ratio (DPR) is 59.98%.

Institutional Trading of International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Amundi raised its position in shares of International Business Machines by 14.5% in the 2nd quarter. Amundi now owns 5,462,124 shares of the technology company’s stock worth $1,536,004,000 after acquiring an additional 690,901 shares in the last quarter. HighTower Advisors LLC boosted its position in shares of International Business Machines by 27.8% in the 2nd quarter. HighTower Advisors LLC now owns 1,716,120 shares of the technology company’s stock worth $482,590,000 after purchasing an additional 372,987 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of International Business Machines in the 2nd quarter worth approximately $73,342,000. Financial Insights Inc. increased its holdings in shares of International Business Machines by 12.0% during the second quarter. Financial Insights Inc. now owns 1,325 shares of the technology company’s stock valued at $373,000 after acquiring an additional 142 shares in the last quarter. Finally, California State Teachers Retirement System grew its position in International Business Machines by 28,068.3% during the 2nd quarter. California State Teachers Retirement System now owns 400,522,341 shares of the technology company’s stock valued at $112,630,888,000 after purchasing an additional 399,100,449 shares during the last quarter. Institutional investors own 58.96% of the company’s stock.

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.