International Business Machines (NYSE:IBM) Shares Down 1.2% – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s share price traded down 1.2% during mid-day trading on Tuesday . The stock traded as low as $209.18 and last traded at $210.4370. Approximately 11,597,370 shares traded hands during trading, an increase of 44% from the average session volume of 8,072,657 shares. The stock had previously closed at $213.00.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM said it will acquire HRL Laboratories, a private quantum research lab, to expand its quantum computing strategy and strengthen its work in silicon-spin qubits and quantum sensing. The deal may reinforce IBM’s long-term AI/quantum growth narrative. Article Title
• Positive Sentiment: Some analysts and market commentary say the post-earnings selloff may have been overdone, noting that delayed enterprise deals could still close and that IBM’s AI demand and free-cash-flow profile remain important longer-term supports. Article Title
• Positive Sentiment: IBM reported Q2 EPS of $2.93, matching estimates, and shares initially found support as investors focused on the company’s long-term AI and productivity initiatives rather than just the revenue miss. Article Title
• Neutral Sentiment: Robert W. Baird upgraded IBM to Hold, which may help stabilize sentiment but does not signal a strong bullish call. Article Title
• Negative Sentiment: IBM cut its full-year revenue growth outlook after a Q2 revenue miss, with management pointing to customer spending shifting toward AI infrastructure and a sharp drop in Z mainframe sales. That weaker guidance is the main reason the stock is down today. Article Title
• Negative Sentiment: Multiple reports highlighted that IBM’s mainframe revenue fell sharply and that the company’s trimmed 2026 outlook raises concern about near-term growth and execution, which continues to weigh on the shares. Article Title

Analyst Ratings Changes

Several brokerages have recently weighed in on IBM. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. KeyCorp lowered shares of International Business Machines to a “sector weight” rating in a report on Tuesday, June 23rd. Needham & Company LLC assumed coverage on shares of International Business Machines in a research note on Wednesday, June 3rd. They issued a “buy” rating for the company. Roth Capital restated a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Finally, Robert W. Baird began coverage on International Business Machines in a research report on Tuesday. They set a “neutral” rating and a $230.00 target price on the stock. Fifteen research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and a consensus target price of $277.32.

International Business Machines Trading Down 2.1%

The firm has a market capitalization of $193.64 billion, a PE ratio of 18.22, a price-to-earnings-growth ratio of 2.27 and a beta of 0.68. The company’s 50-day simple moving average is $263.26 and its 200 day simple 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. The firm had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.48 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.80 EPS. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.19 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s payout ratio is currently 59.77%.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently made changes to their positions in IBM. Cornerstone Wealth Management LLC boosted its position in shares of International Business Machines by 5.9% in the 2nd quarter. Cornerstone Wealth Management LLC now owns 46,058 shares of the technology company’s stock worth $12,952,000 after purchasing an additional 2,584 shares in the last quarter. McElhenny Sheffield Capital Management LLC increased its position in International Business Machines by 16.7% during the 2nd quarter. McElhenny Sheffield Capital Management LLC now owns 2,537 shares of the technology company’s stock valued at $713,000 after buying an additional 363 shares in the last quarter. Robbins Farley increased its position in International Business Machines by 1.9% during the 2nd quarter. Robbins Farley now owns 9,016 shares of the technology company’s stock valued at $2,535,000 after buying an additional 167 shares in the last quarter. Capital Advisors Inc. OK raised its stake in International Business Machines by 46.1% in the second quarter. Capital Advisors Inc. OK now owns 363,488 shares of the technology company’s stock valued at $102,217,000 after buying an additional 114,709 shares during the last quarter. Finally, ABN Amro Investment Solutions raised its stake in International Business Machines by 26.2% in the second quarter. ABN Amro Investment Solutions now owns 62,692 shares of the technology company’s stock valued at $17,630,000 after buying an additional 13,029 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.