International Business Machines (NYSE:IBM) Trading Down 4.8% – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s share price was down 4.8% on Thursday . The company traded as low as $243.68 and last traded at $249.7190. 16,407,675 shares were traded during mid-day trading, an increase of 129% from the average session volume of 7,173,927 shares. The stock had previously closed at $262.35.

Key Stories Impacting International Business Machines

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

• Negative Sentiment: IBM fell after Accenture cut its fiscal 2026 sales guidance, raising concerns that enterprise tech spending and consulting demand may be softening across the sector. Why Is IBM Stock Declining On Thursday?
• Negative Sentiment: Multiple reports said IBM stock was hit in premarket trading after the Accenture warning, with some articles describing a sharp pullback and renewed downside momentum as investors reassess IBM ahead of its July 22 earnings report. International Business Machines (IBM) Stock Slides 4% Following Accenture Revenue Warning
• Negative Sentiment: One market note said IBM has been in a downtrend since early June and has given back a sizable portion of its recent gains, reinforcing bearish sentiment in the near term. Here’s why the IBM stock is falling after the Accenture earnings
• Neutral Sentiment: IBM also had some company-specific positive developments, including a new IBM Maximo SaaS migration for a large Asia-Pacific resort operator and fresh IBM research highlighting enterprise AI sovereignty and data-control needs, which could support longer-term demand but did not offset the sector-driven selling today.

Analyst Upgrades and Downgrades

IBM has been the subject of several recent research reports. UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price target for the company in a research report on Wednesday, February 25th. BMO Capital Markets decreased their price objective on International Business Machines from $290.00 to $270.00 and set a “market perform” rating on the stock in a research report on Thursday, April 23rd. HSBC upgraded International Business Machines from a “reduce” rating to a “hold” rating and lifted their target price for the stock from $218.00 to $231.00 in a report on Tuesday, April 28th. Morgan Stanley boosted their target price on International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a research report on Thursday, April 23rd. Finally, Weiss Ratings upgraded International Business Machines from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, June 9th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $304.17.

International Business Machines Price Performance

The company has a market capitalization of $234.71 billion, a P/E ratio of 22.08, a P/E/G ratio of 2.81 and a beta of 0.67. The firm’s fifty day moving average is $251.20 and its 200 day moving average is $269.32. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. During the same quarter last year, the firm earned $1.60 earnings per share. The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. As a group, analysts predict that International Business Machines Corporation will post 12.38 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were paid a dividend of $1.69 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio is 59.77%.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position 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 last quarter. State Street Corp boosted its stake in shares of International Business Machines by 1.0% during the fourth quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after purchasing an additional 518,321 shares during the period. Geode Capital Management LLC grew its holdings in shares of International Business Machines by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after purchasing an additional 336,069 shares during the last quarter. Capital World Investors increased its stake in International Business Machines by 29.2% in the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after buying an additional 4,976,756 shares during the period. Finally, Bank of America Corp DE increased its stake in International Business Machines by 7.0% in the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock worth $3,893,669,000 after buying an additional 1,049,602 shares during the period. Hedge funds and other institutional investors own 58.96% of the company’s stock.

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.