International Business Machines (NYSE:IBM) Shares Down 4.8% – What’s Next?

International Business Machines Corporation (NYSE:IBM) traded down 4.8% during trading on Tuesday . The company traded as low as $290.16 and last traded at $291.1080. 7,214,369 shares traded hands during trading, an increase of 65% from the average session volume of 4,368,392 shares. The stock had previously closed at $305.67.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM launched “Enterprise Advantage,” an asset?based consulting service to help clients build, govern and scale agentic AI — a clear revenue/consulting push that supports higher-margin services over time. IBM launches Enterprise Advantage
• Positive Sentiment: Partnership with e& to deploy enterprise-grade agentic AI for governance, compliance and risk — expands IBM’s watsonx footprint in telecom/enterprise customers and validates go-to-market momentum announced at Davos. e& and IBM unveil agentic AI
• Positive Sentiment: IBM is rolling out watsonx-powered digital experiences with the Recording Academy around the 2026 Grammys — a marketing/brand use case that can broaden awareness for watsonx consumer-facing demonstrations. IBM and the Recording Academy
• Positive Sentiment: DBS Bank upgraded IBM from “hold” to “moderate buy,” and several analyst note compilations show bullish near?term forecasts — supports sentiment that analysts expect more upside. Analyst upgrade by DBS
• Neutral Sentiment: Coverage and valuation pieces examine IBM’s recent share strength and long?term returns; these are mixed reads for investors deciding whether current levels reflect fair value. Valuation assessment
• Neutral Sentiment: IBM Institute for Business Value published a study projecting AI-driven revenue gains through 2030 — positive long-term thesis but not an immediate earnings catalyst. IBM AI study
• Negative Sentiment: Technical and market-flow pressure: trading volume is elevated and the stock sits below its 50?day moving average, which can prompt short?term selling and profit-taking despite positive fundamentals. Market volatility/dividend piece

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on IBM shares. UBS Group reissued a “sell” rating on shares of International Business Machines in a report on Tuesday, December 9th. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. Bank of America lifted their price target on International Business Machines from $315.00 to $335.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. Weiss Ratings raised International Business Machines from a “hold (c+)” rating to a “buy (b)” rating in a report on Saturday, October 25th. Finally, Morgan Stanley dropped their price objective on International Business Machines from $256.00 to $252.00 and set an “equal weight” rating on the stock in a report on Thursday, October 23rd. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $305.29.

International Business Machines Stock Performance

The stock has a 50-day moving average of $303.39 and a 200 day moving average of $282.50. The stock has a market cap of $272.11 billion, a PE ratio of 34.82, a P/E/G ratio of 2.96 and a beta of 0.70. The company has a quick ratio of 0.89, a current ratio of 0.93 and a debt-to-equity ratio of 1.97.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, October 22nd. The technology company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.45 by $0.20. International Business Machines had a net margin of 12.09% and a return on equity of 37.76%. The company had revenue of $16.33 billion for the quarter, compared to analyst estimates of $16.10 billion. During the same period in the previous year, the business posted $2.30 EPS. International Business Machines’s revenue was up 9.1% on a year-over-year basis. Equities analysts predict that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Monday, November 10th were given a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Monday, November 10th. International Business Machines’s payout ratio is currently 80.38%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Mattson Financial Services LLC purchased a new stake in shares of International Business Machines in the 3rd quarter worth about $852,000. Vise Technologies Inc. acquired a new stake in International Business Machines during the second quarter worth approximately $16,565,000. Vanguard Group Inc. grew its position in shares of International Business Machines by 2.1% in the second quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company’s stock valued at $28,019,274,000 after purchasing an additional 1,913,708 shares during the period. Thames Capital Management LLC acquired a new position in shares of International Business Machines during the 2nd quarter valued at about $2,710,000. Finally, CWM LLC increased its position in International Business Machines by 3.0% during the second quarter. CWM LLC now owns 122,623 shares of the technology company’s stock worth $36,147,000 after purchasing an additional 3,537 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

About International Business Machines

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.