International Business Machines (NYSE:IBM) Stock Price Down 2.4% – Should You Sell?

Shares of International Business Machines Corporation (NYSE:IBM) traded down 2.4% during mid-day trading on Thursday. The company traded as low as $226.01 and last traded at $227.0690. 4,069,369 shares changed hands during trading, a decline of 47% from the average daily volume of 7,657,924 shares. The stock had previously closed at $232.76.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s z17 mainframe has entered an AI-focused university classroom, helping train students on IBM’s mainframe and AI technologies. The deployment could support longer-term talent development and ecosystem adoption, although no contract value was disclosed. IBM Stock Gains as z17 Enters an AI Classroom
• Positive Sentiment: IBM expanded its digital-banking platform through integration with Swift’s blockchain-based shared ledger, enabling tokenized deposit transactions while allowing banks to retain control of their assets and keys. Its Digital Asset Haven platform is also moving toward on-premises deployment, a potentially important feature for regulated institutions. IBM Expands Its Digital Banking Infrastructure with Swift Integration and Digital Asset Haven On-Premises
• Positive Sentiment: Commentary highlights IBM’s potential as an underappreciated beneficiary of enterprise AI and quantum computing. The company’s expanded AI Innovation Incubator partnership with Marist University adds research, education and talent-development support around mainframes, AI and quantum technology. IBM Looks Like an Underappreciated AI and Quantum Winner Hiding in a Boring Stock
• Neutral Sentiment: Analysts and market commentary continue debating whether IBM’s upside depends on growth the company is not currently guiding toward. The debate reflects investor uncertainty over how quickly AI and software can offset slower legacy businesses. Is IBM Stock’s Upside Built On Growth It Is Not Guiding To?
• Negative Sentiment: IBM has recently underperformed the broader market, while comparisons with other dividend companies raise questions about the cash required to sustain its payout. Investors remain focused on IBM’s ability to generate durable growth and fund shareholder returns amid a mainframe slowdown. Chevron or IBM: One of These Dividends Costs $17 Billion a Year to Protect
• Negative Sentiment: Recent weakness also reflects valuation concerns and skepticism about near-term fundamentals. IBM’s latest reported revenue missed expectations despite year-over-year growth, reinforcing concerns that its AI opportunity may take time to materially accelerate results. IBM Registers a Bigger Fall Than the Market

Analyst Ratings Changes

A number of brokerages have commented on IBM. Bank of America increased their price objective on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, July 6th. Sanford C. Bernstein reiterated a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Morgan Stanley cut their target price on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 23rd. Roth Capital reiterated a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $270.00 price objective on shares of International Business Machines in a report on Tuesday, July 21st. Seventeen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $265.16.

International Business Machines Price Performance

The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The firm has a market cap of $212.40 billion, a P/E ratio of 20.00, a PEG ratio of 2.16 and a beta of 0.71. The company has a fifty day moving average price of $231.09 and a two-hundred day moving average price of $245.87.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The business had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.International Business Machines’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.80 EPS. Equities analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Monday, August 10th. International Business Machines’s dividend payout ratio is 59.98%.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.27% of the stock is owned by corporate insiders.

Institutional Trading of International Business Machines

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in International Business Machines during the 2nd quarter worth approximately $21,586,659,000. Bank of America Corp DE bought a new stake in International Business Machines during the 2nd quarter worth about $4,214,868,000. Bank of New York Mellon Corp bought a new position in shares of International Business Machines in the 2nd quarter valued at about $2,606,782,000. Norges Bank acquired a new position in International Business Machines during the fourth quarter valued at approximately $2,446,429,000. Finally, Legal & General Group Plc bought a new stake in shares of International Business Machines during the 2nd quarter worth approximately $1,874,733,000. 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 that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.