International Business Machines (NYSE:IBM) Stock Price Down 1.2% – Here’s Why

Shares of International Business Machines Corporation (NYSE:IBM) dropped 1.2% on Tuesday . The stock traded as low as $302.00 and last traded at $302.0620. Approximately 1,872,233 shares were traded during trading, a decline of 61% from the average daily volume of 4,762,591 shares. The stock had previously closed at $305.74.

More International Business Machines News

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

• Positive Sentiment: Coverage highlights IBM’s transformation into an AI leader in 2025, reinforcing investor confidence in recurring?revenue AI products and services as a durable growth thesis. IBM Became an AI Powerhouse in 2025
• Positive Sentiment: High?profile endorsement from Jim Cramer calling IBM “still cheap” can boost retail/short?term buying interest and supports valuation narratives for value/ income investors. Jim Cramer on International Business Machines: “It’s Still Cheap”
• Positive Sentiment: Operational expansion: IBM’s partnership with Pearson to deliver AI?powered learning tools extends its enterprise AI footprint into education and training — a potential recurring?revenue channel for model deployment and services. Can IBM’s AI Investments Secure Future Market Leadership?
• Positive Sentiment: Longer?term tech differentiation: analysts flag IBM’s diversified quantum roadmap and steady progress versus pure?play quantum firms, which supports IBM’s broader R&D moat into 2026. 2026 Big Tech Quantum Bets: IBM and Amazon’s Edge Over Pure-Plays?
• Neutral Sentiment: IBM continues to be featured among high?yield S&P names — appealing to income investors; this is supportive but not an immediate catalyst for large price moves. Top 5 High-Yield S&P 500 Stocks to Buy for 2026
• Neutral Sentiment: Widespread obituaries and retrospectives mark the death of Lou Gerstner, the CEO credited with IBM’s 1990s turnaround; important for corporate history but unlikely to change near?term fundamentals. Louis V. Gerstner, Who Revived a Faltering IBM in the ’90s, Dies at 83
• Negative Sentiment: Heavy obituary headlines and media attention can create short?term sentiment pressure and profit?taking, contributing to intraday weakness despite positive strategic headlines. Lou Gerstner, the Man Who Revived IBM

Analysts Set New Price Targets

A number of equities research analysts have commented on IBM shares. Stifel Nicolaus upped their price target on International Business Machines from $295.00 to $325.00 and gave the company a “buy” rating in a research report on Tuesday, December 9th. Royal Bank Of Canada decreased their price objective on shares of International Business Machines from $315.00 to $300.00 and set an “outperform” rating for the company in a research note on Thursday, October 23rd. Weiss Ratings raised shares of International Business Machines from a “hold (c+)” rating to a “buy (b)” rating in a report on Saturday, October 25th. Morgan Stanley dropped their price objective on International Business Machines from $256.00 to $252.00 and set an “equal weight” rating for the company in a research note on Thursday, October 23rd. Finally, Jefferies Financial Group raised their price target on International Business Machines from $280.00 to $305.00 and gave the stock a “hold” rating in a research note on Tuesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $293.38.

International Business Machines Stock Down 1.2%

The company has a debt-to-equity ratio of 1.97, a current ratio of 0.93 and a quick ratio of 0.89. The company has a market cap of $282.35 billion, a price-to-earnings ratio of 36.13, a P/E/G ratio of 3.04 and a beta of 0.69. The firm’s 50 day simple moving average is $304.06 and its 200-day simple moving average is $281.03.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 EPS for the quarter, beating the consensus estimate of $2.45 by $0.20. International Business Machines had a return on equity of 37.76% and a net margin of 12.09%.The firm had revenue of $16.33 billion during the quarter, compared to the consensus estimate of $16.10 billion. During the same period in the prior year, the business earned $2.30 EPS. The firm’s revenue was up 9.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Monday, November 10th were issued a dividend of $1.68 per share. The ex-dividend date was Monday, November 10th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.2%. International Business Machines’s payout ratio is presently 80.38%.

Hedge Funds Weigh In On International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Vanguard Group Inc. lifted its holdings in International Business Machines by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 95,776,307 shares of the technology company’s stock valued at $27,024,243,000 after acquiring an additional 724,832 shares during the last quarter. State Street Corp raised its stake in International Business Machines by 0.3% during the 2nd quarter. State Street Corp now owns 54,536,963 shares of the technology company’s stock valued at $16,076,406,000 after purchasing an additional 147,721 shares during the period. Geode Capital Management LLC lifted its stake in International Business Machines by 1.9% in the 2nd quarter. Geode Capital Management LLC now owns 21,936,235 shares of the technology company’s stock worth $6,444,527,000 after acquiring an additional 400,131 shares in the last quarter. Capital World Investors boosted its holdings in shares of International Business Machines by 13.9% during the third quarter. Capital World Investors now owns 17,045,156 shares of the technology company’s stock worth $4,809,461,000 after purchasing an additional 2,077,506 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in International Business Machines by 6.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company’s stock valued at $2,147,608,000 after purchasing an additional 524,633 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors.

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.