International Business Machines (NYSE:IBM) Shares Down 1% – Here’s What Happened

Shares of International Business Machines Corporation (NYSE:IBM) traded down 1% on Thursday . The company traded as low as $228.44 and last traded at $233.5240. Approximately 4,237,961 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 8,201,438 shares. The stock had previously closed at $235.92.

International Business Machines News Summary

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

• Positive Sentiment: FedRAMP authorization expands IBM’s government opportunity. IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools for mission-critical infrastructure and equipment. The approval could support new public-sector bookings and strengthens IBM’s position in regulated cloud markets. IBM Maximo Application Suite Achieves FedRAMP Moderate Authorization
• Positive Sentiment: Quantum computing remains a long-term catalyst. CEO Arvind Krishna said IBM expects quantum computing to begin making a meaningful contribution to revenue and profit around 2028 or 2029. The outlook reinforces IBM’s growth narrative, although the financial impact is still several years away. IBM CEO Predicts Quantum Computing Will Become a Meaningful Business
• Neutral Sentiment: IBM’s blockchain intellectual property sale provides strategic context. IBM reportedly sold nearly 1,000 blockchain patents to Circle, potentially monetizing intellectual property while allowing Circle to build regulated stablecoin infrastructure. The transaction may offer IBM proceeds and a partner ecosystem, but its direct effect on near-term revenue is unclear. Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure Race
• Negative Sentiment: Investor litigation investigations add an overhang. Two law firms announced investigations into whether IBM made misleading statements about a slowdown in its IBM Z mainframe business. Such announcements do not establish wrongdoing, but they raise potential legal costs and increase scrutiny following the stock’s recent weakness. IBM Securities Fraud Investigation
• Negative Sentiment: Kyndryl’s results highlighted IBM-related headwinds. Kyndryl reported growth in U.S. revenue and consulting, but continued declines tied to IBM-related business and workforce-rebalancing charges suggest pressure in portions of IBM’s legacy infrastructure ecosystem. Broader market leadership also shifted toward semiconductor and AI stocks, potentially reducing investor preference for IBM’s more mature businesses. Kyndryl Earnings Call Highlights

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. KeyCorp cut shares of International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 15th. Needham & Company LLC began coverage on shares of International Business Machines in a research report on Wednesday, June 3rd. They issued a “buy” rating on the stock. Citigroup dropped their price objective on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating for the company in a research note on Friday, July 24th. Finally, Piper Sandler raised International Business Machines to an “overweight” rating in a research note on Tuesday, June 23rd. Fifteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $265.40.

International Business Machines Trading Down 1.0%

The business’s fifty day moving average price is $260.43 and its 200 day moving average price is $255.93. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The firm has a market capitalization of $220.01 billion, a PE ratio of 20.72, a P/E/G ratio of 2.31 and a beta of 0.70.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The business had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.80 earnings per share. As a group, analysts expect that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. The ex-dividend date is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. International Business Machines’s dividend payout ratio (DPR) is 59.98%.

Hedge Funds Weigh In On International Business Machines

Large investors have recently added to or reduced their stakes in the business. Family CFO Inc purchased a new stake in International Business Machines in the fourth quarter valued at approximately $25,000. Basepoint Wealth LLC purchased a new position in International Business Machines during the fourth quarter worth approximately $25,000. Portus Wealth Advisors LLC acquired a new position in shares of International Business Machines in the 1st quarter valued at $26,000. Joseph Group Capital Management acquired a new position in shares of International Business Machines in the 4th quarter valued at $28,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of International Business Machines during the 4th quarter valued at $28,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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.