International Business Machines (NYSE:IBM) Stock Price Down 1.6% – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s share price fell 1.6% during mid-day trading on Thursday . The stock traded as low as $233.03 and last traded at $233.40. Approximately 4,030,290 shares changed hands during mid-day trading, a decline of 50% from the average session volume of 8,032,190 shares. The stock had previously closed at $237.16.

International Business Machines News Roundup

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

• Positive Sentiment: IBM successfully connected and cooled two modular cryogenic systems to below 15 millikelvin, creating an architecture intended to link hundreds of quantum chips. The milestone supports IBM’s goal of reaching a 1,000-programmable-qubit system and launching its fault-tolerant Quantum Starling platform by 2029, although commercial benefits remain years away. IBM Connects Its First Modular Cryogenic Systems
• Positive Sentiment: The announcement has attracted broad media coverage and helped reinforce IBM’s position in the race to develop scalable, fault-tolerant quantum computing, potentially supporting the company’s long-term technology narrative. IBM Clears Major Hardware Hurdle
• Neutral Sentiment: CEPR and Cohesive received a Maximo award for improving power-plant safety with IBM Maximo software. The recognition highlights enterprise-software use but is unlikely to materially change IBM’s near-term financial outlook. CEPR and Cohesive Receive Maximo Award
• Negative Sentiment: A law firm announced an investigation into potential securities-law violations following IBM’s substantial stock decline. The announcement does not establish wrongdoing, but it adds headline and litigation risk. IBM Securities Fraud Investigation
• Negative Sentiment: One comparison argues that Accenture offers stronger financials, valuation, and dividend characteristics than IBM, potentially reinforcing concerns among income-oriented investors. IBM’s latest quarterly revenue also came in below estimates despite in-line earnings, limiting the near-term boost from the quantum news. IBM vs. Accenture Dividend Stock Comparison

Analyst Ratings Changes

A number of brokerages recently weighed in on IBM. Wolfe Research cut shares of International Business Machines to a “peer perform” rating in a research report on Tuesday, June 23rd. Wall Street Zen lowered International Business Machines from a “hold” rating to a “sell” rating in a research report on Saturday, July 18th. HSBC set a $175.00 price objective on shares of International Business Machines and gave the stock a “reduce” rating in a report on Thursday, July 16th. Royal Bank Of Canada restated an “outperform” rating and set a $270.00 target price on shares of International Business Machines in a research note on Tuesday, July 21st. Finally, Piper Sandler upgraded International Business Machines to an “overweight” rating in a research note on Tuesday, June 23rd. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $265.40.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock’s fifty day moving average is $248.73 and its two-hundred day moving average is $251.49. The firm has a market cap of $219.89 billion, a price-to-earnings ratio of 20.71, a PEG ratio of 2.28 and a beta of 0.70.

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

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is presently 59.98%.

Institutional Investors Weigh In On International Business Machines

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its holdings in shares of International Business Machines by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock worth $28,796,390,000 after purchasing an additional 1,439,824 shares during the period. BlackRock Inc. acquired a new position in International Business Machines in the 2nd quarter valued at approximately $21,586,659,000. State Street Corp lifted its position in International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock worth $16,290,452,000 after buying an additional 518,321 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock valued at $6,679,105,000 after buying an additional 336,069 shares during the period. Finally, Capital World Investors boosted its stake in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after buying an additional 4,976,756 shares during the period. 58.96% of the stock is currently owned by institutional investors and hedge funds.

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.