International Business Machines (NYSE:IBM) Stock Price Down 3% – What’s Next?

International Business Machines Corporation (NYSE:IBM) shares were down 3% during mid-day trading on Tuesday . The stock traded as low as $301.87 and last traded at $302.8430. Approximately 4,481,150 shares were traded during mid-day trading, an increase of 18% from the average daily volume of 3,783,399 shares. The stock had previously closed at $312.18.

More International Business Machines News

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

• Positive Sentiment: Bank of America raised its price target to $335 and kept a Buy rating, signaling stronger analyst conviction on IBM’s outlook and providing upside support for the stock. Read More.
• Positive Sentiment: Confluent cleared a key U.S. antitrust hurdle related to its deal with IBM, removing a material regulatory uncertainty and making the acquisition more likely to close — a direct strategic positive for IBM if the deal completes. Read More.
• Positive Sentiment: IBM expanded its edge AI offering with Datavault AI using watsonx and zero-trust micro data centers, which supports revenue and margin upside if enterprise adoption of secure, low-latency AI at the edge accelerates. Read More.
• Positive Sentiment: Jim Cramer reiterated that IBM looks inexpensive, a high-visibility endorsement that can attract bargain-hunting retail flows. Read More.
• Neutral Sentiment: IBM vice chairman Gary Cohn said he’s bullish on the economy, a macro view that could indirectly help IBM via stronger IT spending, but it’s not company-specific news. Read More.
• Neutral Sentiment: Market/sector stories (AI, defense, quantum) spotlight other leaders like NVDA and IONQ, which can shift headline attention away from IBM but don’t directly change IBM’s fundamentals. Read More. · Read More.
• Neutral Sentiment: Short-term market note: IBM recently outperformed on a day-to-day basis, a trading observation that can encourage short-term profit-taking. Read More.
• Negative Sentiment: Analyst commentary shows diverging views on IBM’s strategic trajectory, highlighting investor uncertainty about the pace and payoff of IBM’s AI, cloud and M&A strategy — a factor that can weigh on the stock if confidence falters. Read More.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on IBM shares. BMO Capital Markets lifted their target price on International Business Machines from $300.00 to $305.00 and gave the stock a “market perform” rating in a report on Thursday, October 23rd. Jefferies Financial Group raised shares of International Business Machines from a “hold” rating to a “buy” rating and raised their price target for the stock from $300.00 to $360.00 in a research report on Monday, January 5th. Oppenheimer initiated coverage on shares of International Business Machines in a research note on Friday, November 21st. They issued an “outperform” rating and a $360.00 price objective for the company. Wall Street Zen downgraded shares of International Business Machines from a “buy” rating to a “hold” rating in a report on Sunday. Finally, Erste Group Bank raised shares of International Business Machines from a “hold” rating to a “buy” rating in a report on Friday, December 5th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $303.38.

International Business Machines Trading Down 3.0%

The company has a market capitalization of $283.08 billion, a price-to-earnings ratio of 36.23, a P/E/G ratio of 2.82 and a beta of 0.70. The company has a current ratio of 0.93, a quick ratio of 0.89 and a debt-to-equity ratio of 1.97. The business’s 50 day moving average price is $303.70 and its two-hundred day moving average price is $282.04.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.45 by $0.20. International Business Machines had a net margin of 12.09% and a return on equity of 37.76%. The business had revenue of $16.33 billion during the quarter, compared to analysts’ expectations of $16.10 billion. During the same period in the prior year, the company earned $2.30 EPS. The firm’s quarterly revenue was up 9.1% compared to the same quarter last year. On average, equities analysts predict that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Monday, November 10th were paid a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date was Monday, November 10th. International Business Machines’s dividend payout ratio is presently 80.38%.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently bought and sold shares of the company. Brighton Jones LLC raised its holdings in International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock valued at $4,619,000 after buying an additional 2,323 shares during the last quarter. Jones Financial Companies Lllp increased its position in International Business Machines by 25.8% in the 1st quarter. Jones Financial Companies Lllp now owns 164,539 shares of the technology company’s stock valued at $40,210,000 after acquiring an additional 33,725 shares during the period. First Hawaiian Bank raised its stake in shares of International Business Machines by 1.0% during the second quarter. First Hawaiian Bank now owns 4,357 shares of the technology company’s stock valued at $1,284,000 after acquiring an additional 45 shares during the last quarter. Parallel Advisors LLC lifted its holdings in shares of International Business Machines by 1.2% during the second quarter. Parallel Advisors LLC now owns 29,063 shares of the technology company’s stock worth $8,567,000 after purchasing an additional 333 shares during the period. Finally, Cultivar Capital Inc. lifted its holdings in shares of International Business Machines by 34.3% during the second quarter. Cultivar Capital Inc. now owns 6,100 shares of the technology company’s stock worth $1,798,000 after purchasing an additional 1,557 shares during the period. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.