International Business Machines (NYSE:IBM) Stock Price Down 1.4% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s stock price was down 1.4% on Friday. The company traded as low as $221.63 and last traded at $222.5450. 7,576,704 shares traded hands during mid-day trading, a decline of 0% from the average session volume of 7,596,587 shares. The stock had previously closed at $225.62.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Self-hosted AI platform launch: IBM introduced self-hosted deployment for its Bob agentic software development platform, allowing customers to run it on-premises, in private or sovereign clouds, and in air-gapped environments. The offering strengthens IBM’s appeal to regulated customers that require data sovereignty, security, and control over sensitive code and workflows. IBM Introduces Self-Hosted Deployment for IBM Bob
• Positive Sentiment: Accenture’s results lifted sector sentiment: Accenture’s strong consulting bookings and earnings reduced fears that generative AI will sharply damage traditional consulting demand. The read-through supported IBM’s consulting and digital-transformation businesses and helped the stock rebound from a recent slump. Strength in Accenture’s Consulting Business Gives IBM Stock a Boost
• Positive Sentiment: Board and longer-term technology catalysts: IBM elected private-equity executive Frank Baker to its board. Separately, IBM’s advances in quantum computing and its positioning in secure file transfer and smart-manufacturing markets provide potential longer-term growth avenues, although these themes are not yet direct earnings catalysts.
• Neutral Sentiment: Upcoming earnings focus: Investors are looking ahead to IBM’s third-quarter results later this month. Analysts expect high single-digit earnings growth, but the report will be important for assessing whether the recent slowdown has stabilized and whether AI-related products are converting into revenue.
• Negative Sentiment: IBM Z weakness and legal scrutiny remain overhangs: The stock has retreated following a sharp market reaction to weak IBM Z performance and the company’s earlier warning that second-quarter results would fall short of expectations. A shareholder-rights law firm is investigating potential securities-law violations tied to the disclosure, adding reputational and litigation risk. IBM Investigation Following Z Shortfall

Wall Street Analyst Weigh In

IBM has been the topic of a number of analyst reports. Sanford C. Bernstein decreased their target price on shares of International Business Machines from $280.00 to $230.00 and set a “market perform” rating on the stock in a research report on Thursday, July 23rd. Jefferies Financial Group decreased their price objective on International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Robert W. Baird began coverage on International Business Machines in a research report on Tuesday, July 21st. They issued a “neutral” rating and a $230.00 price objective for the company. KeyCorp lowered International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. Finally, Citigroup reduced their target price on International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a research report on Friday, July 24th. Eighteen equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $253.52.

International Business Machines Price Performance

The company’s 50 day moving average price is $232.10 and its 200-day moving average price is $245.08. The company has a market capitalization of $209.67 billion, a PE ratio of 19.75, a PEG ratio of 2.10 and a beta of 0.73. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63.

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

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines’s payout ratio is currently 59.98%.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Global Wealth Strategies & Associates boosted its position in shares of International Business Machines by 10.5% in the third quarter. Global Wealth Strategies & Associates now owns 2,036 shares of the technology company’s stock worth $448,000 after buying an additional 194 shares during the period. Stonebridge Financial Group LLC raised its holdings in shares of International Business Machines by 4.4% during the 3rd quarter. Stonebridge Financial Group LLC now owns 4,264 shares of the technology company’s stock valued at $938,000 after buying an additional 180 shares during the period. QRG Capital Management Inc. raised its holdings in shares of International Business Machines by 6.6% during the 2nd quarter. QRG Capital Management Inc. now owns 172,688 shares of the technology company’s stock valued at $48,562,000 after buying an additional 10,627 shares during the period. Envestnet Portfolio Solutions Inc. lifted its position in International Business Machines by 39.5% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 34,908 shares of the technology company’s stock worth $9,723,000 after acquiring an additional 9,883 shares in the last quarter. Finally, Andra AP fonden boosted its holdings in International Business Machines by 9.7% in the 2nd quarter. Andra AP fonden now owns 134,780 shares of the technology company’s stock worth $37,901,000 after acquiring an additional 11,880 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.