International Business Machines (NYSE:IBM) Trading Down 3.6% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM)’s share price dropped 3.6% during trading on Thursday . The company traded as low as $297.04 and last traded at $297.88. Approximately 4,905,811 shares traded hands during trading, an increase of 26% from the average daily volume of 3,895,144 shares. The stock had previously closed at $309.03.

International Business Machines News Roundup

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

• Positive Sentiment: Demand tailwinds for integrated systems and multi-cloud adoption cited by Zacks could benefit IBM’s hardware and hybrid-cloud services, supporting revenue outlooks for companies like IBM. 4 Stocks to Watch From a Prospering Technology Solutions Industry
• Positive Sentiment: Bank of America analyst expects IBM shares to rise, a publishable vote of confidence that can spur buying from institutional investors and traders. International Business Machines (NYSE:IBM) Stock Price Expected to Rise, Bank of America Analyst Says
• Positive Sentiment: IBM launched “IBM Sovereign Core,” AI‑ready software for sovereign/compliant environments — a product aimed at governments and regulated enterprises that could drive new large contracts and strengthen IBM’s positioning in regulated AI deployments. IBM Introduces New Software to Address Growing Digital Sovereignty Imperative
• Neutral Sentiment: IBM scheduled its Q4 2025 earnings call for Jan. 28 — a routine catalyst that typically increases volatility as investors adjust positions ahead of results. IBM to Announce Fourth-Quarter 2025 Financial Results
• Neutral Sentiment: Analyst and media coverage shows IBM trending and drawing attention, with short-term share movement (recent weekly gain, monthly slip) reflecting mixed investor sentiment rather than a clear directional shift. International Business Machines Stock Trending Among Analysts
• Neutral Sentiment: Coverage of IBM’s global IT presence reiterates scale and enterprise footprint — supportive background but not an immediate stock-moving item. International Business Machines (NYSE:IBM) s&p 500 today Global IT Presence
• Negative Sentiment: Comparisons with Microsoft (Zacks) highlight Microsoft’s stronger AI momentum and growth outlook, implying competitive pressure on IBM’s valuation and investor preference for higher-growth names. IBM vs. MSFT: Which Cloud & AI Tech Giant is a Better Buy?
• Neutral Sentiment: Additional analyst notes and market write-ups offer mixed views and commentary but no single new catalyst beyond the product launch and upcoming earnings call. Analysts Offer Insights on Technology Companies: International Business Machines (IBM) and Lattice Semiconductor (LSCC)

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Morgan Stanley lowered their price target on shares of International Business Machines from $256.00 to $252.00 and set an “equal weight” rating for the company in a report on Thursday, October 23rd. Bank of America raised their target price on shares of International Business Machines from $315.00 to $335.00 and gave the stock a “buy” rating in a research report on Tuesday. Erste Group Bank raised shares of International Business Machines from a “hold” rating to a “buy” rating in a research note on Friday, December 5th. Weiss Ratings raised International Business Machines from a “hold (c+)” rating to a “buy (b)” rating in a research note on Saturday, October 25th. Finally, Royal Bank Of Canada lifted their price objective on International Business Machines from $300.00 to $350.00 and gave the company an “outperform” rating in a research report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $303.38.

International Business Machines Stock Down 3.6%

The firm has a market capitalization of $278.44 billion, a PE ratio of 35.63, a price-to-earnings-growth 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 firm has a 50-day moving average of $303.78 and a two-hundred day moving average of $282.32.

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

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Monday, November 10th were issued a $1.68 dividend. The ex-dividend date was Monday, November 10th. This represents a $6.72 annualized dividend and a yield of 2.3%. International Business Machines’s dividend payout ratio (DPR) is presently 80.38%.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently made changes to their positions in IBM. Norges Bank purchased a new position in International Business Machines in the second quarter valued at about $2,011,122,000. Capital World Investors boosted its position in shares of International Business Machines by 13.9% in the third quarter. Capital World Investors now owns 17,045,156 shares of the technology company’s stock worth $4,809,461,000 after buying an additional 2,077,506 shares during the period. Vanguard Group Inc. grew its stake in shares of International Business Machines by 2.1% in the second quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company’s stock valued at $28,019,274,000 after buying an additional 1,913,708 shares in the last quarter. Laurel Wealth Advisors LLC raised its holdings in shares of International Business Machines by 27,928.2% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company’s stock valued at $561,001,000 after buying an additional 1,896,326 shares during the period. Finally, First Trust Advisors LP raised its holdings in shares of International Business Machines by 39.6% during the 3rd quarter. First Trust Advisors LP now owns 3,052,880 shares of the technology company’s stock valued at $861,401,000 after buying an additional 865,253 shares during the period. Institutional investors and hedge funds 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.