Wall Street Zen Downgrades International Business Machines (NYSE:IBM) to Sell

International Business Machines (NYSE:IBM) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Saturday, Wall Street Zen reports.

A number of other analysts have also issued reports on IBM. Stifel Nicolaus reduced their target price on International Business Machines from $290.00 to $235.00 and set a “buy” rating for the company in a report on Monday, July 20th. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $270.00 target price on shares of International Business Machines in a research note on Tuesday, July 21st. Morgan Stanley decreased their price target on International Business Machines from $293.00 to $190.00 and set an “equal weight” rating for the company in a research note on Thursday, July 23rd. Finally, Argus lowered their target price on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a research note on Thursday, July 16th. Seventeen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, International Business Machines presently has a consensus rating of “Moderate Buy” and a consensus target price of $265.90.

International Business Machines Stock Down 0.1%

IBM stock opened at $243.14 on Friday. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a market capitalization of $229.07 billion, a P/E ratio of 21.57, a P/E/G ratio of 2.32 and a beta of 0.71. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The company’s 50 day simple moving average is $236.88 and its 200-day simple moving average is $246.52.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter last year, the business posted $2.80 EPS. The company’s revenue was up 1.1% on a year-over-year basis. As a group, equities research analysts anticipate that International Business Machines will post 12.33 EPS for the current year.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the company’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.27% of the stock is owned by company insiders.

Institutional Trading of International Business Machines

Large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC increased its stake in shares of International Business Machines by 12.4% in the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock valued at $4,619,000 after buying an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC raised its stake in shares of International Business Machines by 10.6% during the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock worth $571,000 after buying an additional 186 shares during the last quarter. Jump Financial LLC bought a new stake in shares of International Business Machines during the 2nd quarter valued at $211,000. Ieq Capital LLC lifted its stake in International Business Machines by 2.2% in the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock valued at $11,383,000 after buying an additional 843 shares during the period. Finally, Vivaldi Capital Management LP raised its position in shares of International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock valued at $300,000 after acquiring an additional 106 shares during the period. 58.96% of the stock is owned by institutional investors.

International Business Machines News Roundup

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

• Positive Sentiment: Lunar AI partnership with NASA: IBM and NASA released the open-source Lunar Foundation Model, trained on decades of lunar observation data. The model reportedly outperformed widely used mapping methods by up to 23% in identifying features such as ice deposits, craters and volcanic formations. The announcement strengthens IBM’s profile in scientific AI, although near-term revenue is likely limited. IBM and NASA Release Open-Source AI Model to Support Lunar Exploration
• Positive Sentiment: Swiss quantum-computing hub: IBM and Lockheed Martin are establishing a quantum innovation hub at ETH Zurich through Switzerland’s defense-offset program. The Swiss National Supercomputing Centre is expected to host the country’s first IBM Quantum System Two, powered by IBM’s Nighthawk r2 processor and integrated with the Alps supercomputer. The arrangement could provide IBM with a government-supported, multi-year deployment while expanding access to researchers and businesses. Research will focus on quantum sensing, navigation and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Neutral Sentiment: Analyst coverage continues to frame IBM as a diversified way to gain exposure to enterprise AI, hybrid cloud and quantum computing. However, the announcements are primarily strategic and research-oriented, so their effect on revenue and earnings may take years to materialize.
• Negative Sentiment: IBM recently underperformed the broader market, while a shareholder-rights law firm announced an investigation tied to management’s prior preview of weak second-quarter 2026 results. The investigation is not an allegation of wrongdoing, but it adds headline and legal risk. IBM Shareholder Investigation

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.