International Business Machines (NYSE:IBM) Stock Price Down 1.4% – Time to Sell?

International Business Machines Corporation (NYSE:IBM)’s stock price was down 1.4% on Monday . The company traded as low as $279.43 and last traded at $280.9210. Approximately 6,448,142 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 7,132,164 shares. The stock had previously closed at $284.84.

International Business Machines News Summary

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

• Positive Sentiment: Jim Cramer publicly said he prefers IBM over speculative quantum names, which may have helped support sentiment by positioning IBM as the more established way to play quantum and AI. Jim Cramer Recommends IBM Over Xanadu Quantum
• Positive Sentiment: IBM announced an expanded global collaboration with JA Worldwide to deliver AI and digital-skills training to up to one million high-school students, reinforcing IBM’s brand in education and workforce development. JA Worldwide and IBM Expand Global Collaboration with Goal of Delivering AI and Digital Skills to Up to One Million High-School Students
• Positive Sentiment: Commentary across multiple outlets highlighted IBM CEO Arvind Krishna’s emphasis on quantum computing, AI, and a long-term profit strategy, which supports the narrative that IBM is building optionality in next-generation tech. IBM CEO: AI Won’t Necessarily Lead To Smaller Headcount
• Neutral Sentiment: Analysts and media continued debating IBM’s valuation versus other AI infrastructure names, with one comparison piece arguing peers may offer faster growth and cheaper valuations than IBM. Celestica vs. IBM: Which AI Infrastructure Stock is the Better Buy?
• Neutral Sentiment: Coverage also continued to frame IBM as a long-term AI and quantum winner, but some reports noted the stock may need a pullback before offering a more attractive entry point. IBM Just Placed a $10 Billion Bet to Become the Nvidia of Quantum Computing

Analysts Set New Price Targets

A number of equities analysts recently weighed in on IBM shares. Oppenheimer cut their price target on shares of International Business Machines from $380.00 to $320.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. Weiss Ratings downgraded shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, May 21st. Morgan Stanley upped their price objective on shares of International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a report on Thursday, April 23rd. HSBC raised shares of International Business Machines from a “reduce” rating to a “hold” rating and raised their price objective for the stock from $218.00 to $231.00 in a report on Tuesday, April 28th. Finally, Roth Mkm reaffirmed a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, International Business Machines presently has a consensus rating of “Moderate Buy” and a consensus target price of $304.17.

International Business Machines Stock Performance

The stock has a market capitalization of $256.38 billion, a PE ratio of 24.12, a P/E/G ratio of 2.91 and a beta of 0.67. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The business’s fifty day moving average price is $248.08 and its 200-day moving average price is $270.61.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The firm had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same period in the prior year, the firm posted $1.60 earnings per share. The company’s revenue for the quarter was up 9.5% on a year-over-year basis. As a group, equities research analysts expect that International Business Machines Corporation will post 12.4 EPS for the current year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be given a dividend of $1.69 per share. The ex-dividend date is Friday, May 8th. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 2.5%. International Business Machines’s dividend payout ratio (DPR) is 59.77%.

Hedge Funds Weigh In On International Business Machines

Hedge funds have recently modified their holdings of the company. FAS Wealth Partners Inc. boosted its holdings in International Business Machines by 1.1% in the first quarter. FAS Wealth Partners Inc. now owns 7,598 shares of the technology company’s stock valued at $1,842,000 after acquiring an additional 86 shares in the last quarter. Pine Valley Investments Ltd Liability Co boosted its holdings in International Business Machines by 1.1% in the first quarter. Pine Valley Investments Ltd Liability Co now owns 20,341 shares of the technology company’s stock valued at $4,930,000 after acquiring an additional 225 shares in the last quarter. Farmers National Bank boosted its holdings in International Business Machines by 13.9% in the first quarter. Farmers National Bank now owns 28,786 shares of the technology company’s stock valued at $6,977,000 after acquiring an additional 3,518 shares in the last quarter. Blue Edge Capital LLC boosted its holdings in International Business Machines by 22.9% in the first quarter. Blue Edge Capital LLC now owns 8,316 shares of the technology company’s stock valued at $2,016,000 after acquiring an additional 1,551 shares in the last quarter. Finally, Caerus Investment Advisors LLC boosted its holdings in shares of International Business Machines by 35.7% during the 1st quarter. Caerus Investment Advisors LLC now owns 1,418 shares of the technology company’s stock valued at $344,000 after buying an additional 373 shares in the last quarter. Hedge funds and other institutional investors 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.