International Business Machines (NYSE:IBM) Shares Down 2.7% – Time to Sell?

International Business Machines Corporation (NYSE:IBM)’s stock price was down 2.7% on Wednesday . The stock traded as low as $211.03 and last traded at $211.2530. Approximately 29,307,618 shares changed hands during mid-day trading, an increase of 271% from the average session volume of 7,899,099 shares. The stock had previously closed at $217.07.

Key International Business Machines News

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

• Negative Sentiment: IBM’s preliminary Q2 results missed Wall Street estimates, with revenue of $17.2 billion and adjusted EPS of $2.93 both below expectations, raising concerns about execution and demand. Reuters: IBM expects second-quarter revenue below estimates
• Negative Sentiment: Management said large enterprise deals closed later than expected as customers redirected budgets toward AI-related infrastructure and cybersecurity needs, suggesting IBM’s traditional software and consulting mix is facing spending pressure. CNBC: IBM warns second-quarter earnings fell short of expectations
• Negative Sentiment: Several law firms and investor-watchdog headlines announced investigations into possible securities claims, which can keep sentiment weak and add headline risk for the stock. PR Newswire: IBM shareholder investigation
• Neutral Sentiment: Some analysts still point to IBM’s long-term valuation support and high consensus price targets, but that has not offset the near-term hit from the earnings warning. 247WallSt: IBM just crashed. If Wall Street pros are right the stock could soar from here

Analyst Ratings Changes

IBM has been the subject of several analyst reports. Oppenheimer cut shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday. Needham & Company LLC started coverage on shares of International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating for the company. Jefferies Financial Group initiated coverage on shares of International Business Machines in a research note on Tuesday, June 23rd. They set a “buy” rating for the company. Morgan Stanley increased their target price on International Business Machines from $267.00 to $293.00 and gave the company an “equal weight” rating in a report on Tuesday. Finally, DZ Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target on the stock in a research note on Friday, April 24th. Fourteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, International Business Machines currently has a consensus rating of “Moderate Buy” and a consensus price target of $307.17.

International Business Machines Trading Down 2.7%

The business’s 50-day moving average price is $264.70 and its 200-day moving average price is $265.20. The firm has a market capitalization of $198.55 billion, a PE ratio of 18.68, a price-to-earnings-growth ratio of 2.80 and a beta of 0.68. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.60 EPS. As a group, analysts expect that International Business Machines Corporation will post 12.45 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were issued a $1.69 dividend. The ex-dividend date of this dividend was Friday, May 8th. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.2%. International Business Machines’s dividend payout ratio is presently 59.77%.

Institutional Investors Weigh In On International Business Machines

Hedge funds have recently added to or reduced their stakes in the company. Family CFO Inc acquired a new position in shares of International Business Machines during the 4th quarter worth $25,000. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines during the 4th quarter valued at approximately $25,000. Portus Wealth Advisors LLC purchased a new stake in shares of International Business Machines during the 1st quarter worth approximately $26,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines in the 4th quarter worth approximately $28,000. Finally, Cornerstone Financial Management LLC purchased a new position in International Business Machines in the 4th quarter valued at approximately $28,000. 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.