International Business Machines (NYSE:IBM) Shares Down 4.8% – Should You Sell?

International Business Machines Corporation (NYSE:IBM) dropped 4.8% on Thursday . The company traded as low as $257.22 and last traded at $259.74. Approximately 12,536,966 shares traded hands during mid-day trading, an increase of 133% from the average daily volume of 5,373,332 shares. The stock had previously closed at $272.81.

More International Business Machines News

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

• Positive Sentiment: Product and security roadmap updates strengthen IBM’s AI-storage and security positioning, supporting future revenue for enterprise customers. IBM AI FlashSystem And QRadar Updates Shape Storage And Security Story
• Positive Sentiment: IBM expanded partnership activity (called out in coverage of a smaller AI partner) increases visibility of IBM’s AI ecosystem and could drive channel/PR benefits. This is a modest positive signal for IBM’s AI momentum. Datavault AI Death Cross Collides With IBM, Super Bowl Boost
• Neutral Sentiment: Analyst coverage remains mixed: recent reports include multiple “Buy/Outperform” calls but at least one “Sell,” and a wide range of price targets (median ~$337.5). That divergence creates uncertainty around near-term sentiment. $IBM stock is down 6% today. Here’s what we see in our data.
• Neutral Sentiment: Coverage placing IBM among reliable dividend names may support long-term investor demand, but has limited effect on short-term price moves. 3 Dividend Aristocrat Stocks To Buy for Reliable Income In 2026
• Neutral Sentiment: Institutional activity is mixed: Quiver’s data shows many funds both increasing and decreasing IBM positions in recent quarters, signaling ongoing rotation rather than a consensus directional bet. Fund Update: Advisors Asset Management, Inc. Just Disclosed New Holdings
• Negative Sentiment: Advisors Asset Management reduced its IBM holding by ~11% in the 12/31/2025 13F filing — incremental selling from an institutional holder can add downward pressure. Fund Update: Advisors Asset Management, Inc. Just Disclosed New Holdings
• Negative Sentiment: Large put buying—traders purchased ~56,108 IBM put options (a ~42% jump vs. typical put volume)—signals increased bearish positioning and hedging demand that can amplify downside.
• Negative Sentiment: High retail/search/volume and reported same-day price drops indicate heavy selling and short-term volatility; that momentum and media attention can accelerate declines in the near term. $IBM stock is down 6% today. Here’s what we see in our data.

Wall Street Analyst Weigh In

Several research firms recently commented on IBM. UBS Group set a $317.00 target price on shares of International Business Machines in a research note on Thursday, January 29th. Weiss Ratings reiterated a “buy (b)” rating on shares of International Business Machines in a research report on Thursday, January 22nd. Erste Group Bank raised International Business Machines from a “hold” rating to a “buy” rating in a research note on Friday, December 5th. Royal Bank Of Canada set a $361.00 target price on International Business Machines in a research report on Thursday, January 29th. Finally, Jefferies Financial Group increased their price target on International Business Machines from $360.00 to $370.00 and gave the company a “buy” rating in a research report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $330.07.

International Business Machines Stock Performance

The stock has a market capitalization of $242.79 billion, a PE ratio of 23.30, a P/E/G ratio of 2.92 and a beta of 0.69. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. The firm has a 50 day moving average of $301.11 and a 200-day moving average of $284.05.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, beating the consensus estimate of $4.33 by $0.19. The company had revenue of $19.69 billion for the quarter, compared to analysts’ expectations of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $3.92 EPS. Research analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be given a $1.68 dividend. The ex-dividend date is Tuesday, February 10th. This represents a $6.72 dividend on an annualized basis and a yield of 2.6%. International Business Machines’s dividend payout ratio is presently 60.27%.

Insider Activity

In related news, Director David N. Farr purchased 1,000 shares of the stock in a transaction dated Friday, January 30th. The shares were acquired at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the acquisition, the director directly owned 9,258 shares in the company, valued at approximately $2,814,432. The trade was a 12.11% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.18% of the stock is owned by company insiders.

Institutional Trading of International Business Machines

Institutional investors have recently bought and sold shares of the company. Advocate Investing Services LLC acquired a new stake in shares of International Business Machines during the 4th quarter valued at about $68,000. Beck Mack & Oliver LLC raised its position in International Business Machines by 4.9% during the fourth quarter. Beck Mack & Oliver LLC now owns 1,700 shares of the technology company’s stock valued at $504,000 after acquiring an additional 80 shares in the last quarter. Hollencrest Capital Management lifted its stake in International Business Machines by 45.0% in the fourth quarter. Hollencrest Capital Management now owns 966 shares of the technology company’s stock valued at $286,000 after acquiring an additional 300 shares during the last quarter. Schwerin Boyle Capital Management Inc. bought a new stake in International Business Machines in the fourth quarter worth approximately $222,000. Finally, Federation des caisses Desjardins du Quebec grew its position in International Business Machines by 22.6% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 72,150 shares of the technology company’s stock worth $21,367,000 after acquiring an additional 13,302 shares in 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 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.