International Business Machines (NYSE:IBM) Hits New 12-Month Low – Here’s What Happened

Shares of International Business Machines Corporation (NYSE:IBM) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $199.19 and last traded at $202.1610, with a volume of 2605970 shares traded. The stock had previously closed at $205.77.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM is expanding its quantum computing push by agreeing to acquire HRL Laboratories, a move that could strengthen its long-term technology roadmap and deepen its position in next-generation computing. IBM buys HRL Laboratories in shift to two-track quantum computing strategy
• Positive Sentiment: IBM also continued its shareholder return story by declaring a quarterly dividend of $1.69 per share, which supports income-oriented investors.
• Neutral Sentiment: CEO Arvind Krishna is trying to calm investors, saying the AI strategy is still the right one and that some customer demand has only been delayed, not destroyed. IBM CEO addresses earnings shortfall and historic stock plunge: ‘Our AI strategy is the right one’
• Negative Sentiment: IBM cut its 2026 revenue outlook after the Q2 miss, reinforcing concerns that growth is weaker than previously expected. IBM cuts 2026 revenue outlook after Q2 earnings miss
• Negative Sentiment: Mainframe sales weakness and a shift in customer spending toward AI data-center gear are pressuring IBM’s infrastructure business, which is weighing on sentiment around the stock. IBM cuts annual revenue growth forecast as customers prioritize AI infrastructure spending

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Bank of America upped their price target on International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Wall Street Zen downgraded shares of International Business Machines from a “hold” rating to a “sell” rating in a research report on Saturday, July 18th. Barclays dropped their price target on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating on the stock in a research report on Thursday. Citigroup cut their price target on International Business Machines from $375.00 to $255.00 and set a “buy” rating for the company in a research note on Friday, July 17th. Finally, Needham & Company LLC began coverage on International Business Machines in a report on Wednesday, June 3rd. They set a “buy” rating for the company. Fifteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $271.80.

International Business Machines Price Performance

The company has a market capitalization of $193.14 billion, a P/E ratio of 18.15, a price-to-earnings-growth ratio of 2.27 and a beta of 0.68. The business’s 50-day moving average is $263.26 and its two-hundred day moving average is $261.42. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.48 billion. During the same period in the prior year, the firm posted $2.80 EPS. The firm’s quarterly revenue was up 1.1% compared to the same quarter last year. As a group, analysts predict that International Business Machines Corporation will post 12.19 earnings per share for the current year.

International Business Machines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is presently 59.77%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of IBM. Vanguard Group Inc. boosted its stake in International Business Machines by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock valued at $28,796,390,000 after acquiring an additional 1,439,824 shares during the last quarter. State Street Corp boosted its holdings in International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after purchasing an additional 518,321 shares during the period. Geode Capital Management LLC boosted its holdings in International Business Machines by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock valued at $6,679,105,000 after purchasing an additional 336,069 shares during the period. Capital World Investors grew its position in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after purchasing an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in shares of International Business Machines by 7.0% in the first quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after purchasing an additional 1,049,602 shares during the period. Hedge funds and other institutional investors 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.