International Business Machines (NYSE:IBM) Stock Price Down 4.3% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s stock price dropped 4.3% during trading on Wednesday . The stock traded as low as $235.41 and last traded at $237.6480. 6,156,432 shares were traded during mid-day trading, a decline of 20% from the average session volume of 7,685,708 shares. The stock had previously closed at $248.37.

International Business Machines News Summary

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

• Positive Sentiment: IBM finalized a $1 billion U.S. government award for Anderon, its quantum-focused subsidiary, to develop and expand the country’s first stand-alone, pure-play quantum wafer foundry. The funding should support research, manufacturing capacity and broader access to quantum technology, strengthening IBM’s long-term position in the emerging market. Anderon finalizes $1 billion CHIPS award
• Positive Sentiment: IBM also highlighted a production-scale artificial-intelligence deployment for a Turkish credit bureau capable of handling 23 million transactions daily. Although financial terms were not disclosed, the project provides evidence of real-world demand for IBM’s AI and hybrid-cloud capabilities. IBM AI deal handles 23 million transactions daily
• Neutral Sentiment: Analyst price targets remain above the current trading level, with one report citing a $265.90 target. However, IBM trades below its 200-day moving average, while recent technical coverage points to resistance near $239 and continued volatility after its earlier recovery. Analysts set IBM price target
• Negative Sentiment: Investors appeared to take profits following IBM’s recent advance, limiting the immediate benefit of the quantum announcement. IBM was also cited as a notable drag on the Dow, even as much of the broader technology sector traded higher. Why IBM stock is falling Wednesday

Analyst Ratings Changes

Several equities research analysts have issued reports on IBM shares. Susquehanna lifted their price objective on International Business Machines from $225.00 to $235.00 and gave the stock a “neutral” rating in a report on Monday, August 31st. Wall Street Zen downgraded shares of International Business Machines from a “hold” rating to a “sell” rating in a research report on Saturday. Citigroup dropped their price target 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. Jefferies Financial Group cut their price target on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Finally, Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. Seventeen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $265.16.

International Business Machines Trading Down 4.3%

The company has a market cap of $223.90 billion, a P/E ratio of 21.09, a P/E/G ratio of 2.37 and a beta of 0.71. The business has a fifty day simple moving average of $234.72 and a 200 day simple moving average of $246.74. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. The business had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business’s quarterly revenue was up 1.1% on a year-over-year basis. During the same period in the previous year, the business earned $2.80 EPS. Analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were paid a dividend of $1.69 per share. The ex-dividend date was Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 2.8%. International Business Machines’s payout ratio is presently 59.98%.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.27% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of International Business Machines during the second quarter valued at approximately $21,586,659,000. State Street Corp lifted its holdings in shares of 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 worth $16,290,452,000 after purchasing an additional 518,321 shares during the last quarter. Geode Capital Management LLC boosted its position in International Business Machines by 1.5% during 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 boosted its position in 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 during the period. Finally, Bank of America Corp DE grew its stake in International Business Machines by 7.0% during the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after buying an additional 1,049,602 shares during the last quarter. Institutional investors and hedge funds 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 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.