International Business Machines (NYSE:IBM) Stock Price Down 1.2% – Here’s Why

International Business Machines Corporation (NYSE:IBM) shares traded down 1.2% on Thursday . The stock traded as low as $300.18 and last traded at $301.9320. 9,449,239 shares traded hands during trading, an increase of 33% from the average session volume of 7,086,249 shares. The stock had previously closed at $305.63.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Wedbush reportedly reset its IBM price target, citing stronger AI momentum and continued demand for IBM’s enterprise software and consulting offerings.
• Positive Sentiment: IBM’s new strategic partnership with Google Cloud to scale enterprise AI adoption is being seen as a meaningful growth driver, with the deal aimed at helping customers modernize systems and bring AI into production faster. IBM and Google Cloud Announce Strategic Partnership to Scale AI with Human Expertise and AI‑Powered Delivery
• Positive Sentiment: Several market commentary pieces highlighted IBM’s large quantum-computing investment as a long-term catalyst, with some analysts saying the company is strengthening its position in an emerging high-growth market. IBM Stock’s $10 Billion Quantum Catalyst Is Here
• Positive Sentiment: Citi also pointed to IBM’s growing role in quantum computing, reinforcing the view that the company’s heavy spending could secure a leadership position in a market with major future upside.
• Neutral Sentiment: IBM shares were included in broader market coverage of stocks making big moves, reflecting elevated trading interest but not adding a clearly new company-specific catalyst.
• Negative Sentiment: A former IBM cybersecurity executive accused the company of covering up multiple foreign-government data breaches over the past decade, raising potential reputational and legal risks. Former cyber executive turned whistleblower accuses IBM of covering up several data breaches
• Negative Sentiment: Another report repeated allegations that IBM and AT&T concealed foreign hacks, which could weigh on investor sentiment if the claims gain traction.

Wall Street Analyst Weigh In

IBM has been the subject of several analyst reports. JPMorgan Chase & Co. decreased their price objective on International Business Machines from $317.00 to $283.00 and set a “neutral” rating for the company in a report on Wednesday, March 18th. Barclays assumed coverage on International Business Machines in a research report on Monday, June 1st. They set an “overweight” rating and a $350.00 price target for the company. UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price objective on the stock in a research report on Wednesday, February 25th. Stifel Nicolaus set a $290.00 price objective on shares of International Business Machines in a research note on Friday, May 22nd. Finally, Morgan Stanley lifted their target price on shares of International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $304.17.

International Business Machines Trading Down 5.5%

The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The company has a 50 day moving average of $246.48 and a two-hundred day moving average of $270.94. The stock has a market cap of $267.93 billion, a PE ratio of 25.20, a price-to-earnings-growth ratio of 3.13 and a beta of 0.67.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data 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 business had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business’s revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.60 earnings per share. Sell-side analysts anticipate that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be given a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.4%. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. International Business Machines’s dividend payout ratio (DPR) is 59.77%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. CVA Family Office LLC raised its position in shares of International Business Machines by 1.4% in the fourth quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock valued at $708,000 after buying an additional 33 shares during the last quarter. Foster Group Inc. boosted its position in International Business Machines by 1.3% during the fourth quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock worth $742,000 after acquiring an additional 33 shares during the last quarter. New Covenant Trust Company N.A. grew its stake in International Business Machines by 3.8% during the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock valued at $264,000 after acquiring an additional 33 shares in the last quarter. McGowan Group Asset Management Inc. grew its stake in International Business Machines by 1.2% during the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock valued at $798,000 after acquiring an additional 33 shares in the last quarter. Finally, MA Private Wealth raised its holdings in International Business Machines by 1.5% in the 3rd quarter. MA Private Wealth now owns 2,242 shares of the technology company’s stock valued at $633,000 after acquiring an additional 34 shares during the last quarter. 58.96% of the stock is 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.