International Business Machines (NYSE:IBM) Shares Gap Down Following Analyst Downgrade

International Business Machines Corporation (NYSE:IBM) shares gapped down prior to trading on Thursday after Wedbush lowered their price target on the stock from $340.00 to $320.00. The stock had previously closed at $251.86, but opened at $232.27. Wedbush currently has an outperform rating on the stock. International Business Machines shares last traded at $224.4940, with a volume of 6,276,690 shares traded.

IBM has been the topic of several other reports. Evercore lifted their price objective on shares of International Business Machines from $330.00 to $345.00 and gave the stock an “outperform” rating in a research report on Thursday, January 29th. DZ Bank upgraded International Business Machines to a “hold” rating in a report on Wednesday, February 11th. BMO Capital Markets decreased their target price on International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a research report on Thursday. Jefferies Financial Group lowered their price target on International Business Machines from $370.00 to $320.00 and set a “buy” rating on the stock in a report on Monday. Finally, Bank of America upped their price target on International Business Machines from $315.00 to $335.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $300.60.

Insider Activity

In other International Business Machines news, Director Michael Miebach acquired 434 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The shares were purchased at an average price of $233.33 per share, with a total value of $101,265.22. Following the completion of the transaction, the director owned 434 shares in the company, valued at $101,265.22. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director David N. Farr bought 1,000 shares of International Business Machines stock in a transaction on Friday, January 30th. The stock was acquired at an average price of $304.00 per share, with a total value of $304,000.00. Following the completion of the purchase, the director directly owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. The trade was a 12.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have bought 1,484 shares of company stock valued at $417,157. 0.27% of the stock is owned by corporate insiders.

Key International Business Machines News

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

• Positive Sentiment: Q1 beat on top and bottom lines — revenue of $15.92B and $1.91 EPS topped expectations, driven by AI-related demand and hybrid‑cloud strength, supporting fundamentals and margins. IBM Q1 Deep Dive: AI and Hybrid Cloud Growth Drive Strong Start to 2026
• Positive Sentiment: Dividend increased — IBM raised its quarterly dividend to $1.69, marking another payout lift that supports income investors and signals cash‑flow confidence. What IBM’s Q1 Beat and 31st Dividend Hike Mean For Shareholders
• Positive Sentiment: Infrastructure/mainframe strength — double‑digit infrastructure growth (Z mainframe demand) provides a durable revenue base as enterprises adopt AI workloads. IBM tops quarterly estimates on hybrid cloud growth
• Neutral Sentiment: Analyst moves mixed — firms updated price targets and ratings (some trims, some reiterations), leaving professional views divergent and volatility likely while the market digests guidance and segment details. IBM slides 8% as investors digest Q1 beat but steady full‑year outlook
• Negative Sentiment: Management held full‑year guidance instead of raising it — investors punished the stock because a reiterated outlook after a beat implies caution on momentum and near‑term upside. IBM shares turn lower as company beats but opts to maintain guidance
• Negative Sentiment: Software / AI anxiety — the broader software selloff (ServiceNow and peers) amplified fears that AI could disrupt subscription economics; IBM’s software growth showed signs of moderation that traders interpreted negatively. US software stocks slide as IBM, ServiceNow results reignite AI disruption fears
• Negative Sentiment: Macro/geopolitical drag — rising oil and Iran/Strait of Hormuz tensions weighed on markets, contributing to sectorwide weakness and accelerating the selloff in big‑cap tech names. US Equity Indexes Drop as Growth Sectors Dampen Sentiment, Hormuz Deadlock Continues

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Family CFO Inc acquired a new position in shares of International Business Machines during the 4th quarter worth $25,000. Basepoint Wealth LLC acquired a new position in shares of International Business Machines during the 4th quarter worth $25,000. Portus Wealth Advisors LLC acquired a new position in shares of International Business Machines during the 1st quarter worth $26,000. Mountain Hill Investment Partners Corp. acquired a new position in shares of International Business Machines during the 3rd quarter worth $28,000. Finally, Joseph Group Capital Management acquired a new position in shares of International Business Machines during the 4th quarter worth $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Trading Down 8.0%

The company’s 50 day moving average price is $246.48 and its 200 day moving average price is $280.87. The company has a market cap of $217.44 billion, a price-to-earnings ratio of 20.50, a price-to-earnings-growth ratio of 2.64 and a beta of 0.69. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 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 38.37%. The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same quarter in the prior year, the business posted $1.60 EPS. International Business Machines’s quarterly revenue was up 9.5% on a year-over-year basis. Research analysts anticipate that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Friday, May 8th. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is 60.27%.

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.