International Business Machines (NYSE:IBM) Stock Price Down 8% Following Analyst Downgrade

International Business Machines Corporation (NYSE:IBM) fell 8% during trading on Thursday after Wedbush lowered their price target on the stock from $340.00 to $320.00. Wedbush currently has an outperform rating on the stock. International Business Machines traded as low as $221.73 and last traded at $231.8080. 22,241,238 shares changed hands during trading, an increase of 274% from the average session volume of 5,940,277 shares. The stock had previously closed at $251.86.

Several other research analysts have also commented on IBM. Jefferies Financial Group reduced their price objective on shares of International Business Machines from $370.00 to $320.00 and set a “buy” rating for the company in a research note on Monday. Erste Group Bank lowered shares of International Business Machines from a “buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Stifel Nicolaus reduced their price objective on shares of International Business Machines from $340.00 to $290.00 and set a “buy” rating for the company in a research note on Wednesday, April 8th. Royal Bank Of Canada reduced their price objective on shares of International Business Machines from $361.00 to $330.00 and set an “outperform” rating for the company in a research note on Friday, April 17th. Finally, Wall Street Zen lowered shares of International Business Machines from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, International Business Machines presently has an average rating of “Moderate Buy” and a consensus target price of $300.60.

Insider Buying and Selling

In related news, Director David N. Farr purchased 1,000 shares of the business’s stock in a transaction on Friday, January 30th. The shares were acquired at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the purchase, the director owned 9,258 shares of the company’s stock, valued at $2,814,432. This trade represents a 12.11% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michael Miebach purchased 434 shares of the business’s stock in a transaction on Wednesday, February 25th. The shares were bought at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the purchase, the director directly owned 434 shares in the company, valued at $101,265.22. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 1,484 shares of company stock worth $417,157 in the last 90 days. 0.27% of the stock is currently owned by company insiders.

More 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 bought and sold shares of the stock. Foster Group Inc. lifted its stake in International Business Machines by 1.3% in the fourth quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock valued at $742,000 after buying an additional 33 shares during the last quarter. CVA Family Office LLC lifted its stake in International Business Machines by 1.4% in the fourth quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock valued at $708,000 after buying an additional 33 shares during the last quarter. New Covenant Trust Company N.A. lifted its stake in International Business Machines by 3.8% in the fourth quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock valued at $264,000 after buying an additional 33 shares during the last quarter. McGowan Group Asset Management Inc. lifted its stake in International Business Machines by 1.2% in the fourth quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock valued at $798,000 after buying an additional 33 shares during the last quarter. Finally, CFS Investment Advisory Services LLC lifted its stake in International Business Machines by 0.4% in the third quarter. CFS Investment Advisory Services LLC now owns 9,359 shares of the technology company’s stock valued at $2,878,000 after buying an additional 34 shares during the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Price Performance

The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The company has a market capitalization of $217.44 billion, a P/E ratio of 20.50, a PEG ratio of 2.64 and a beta of 0.69. The business has a 50 day simple moving average of $246.48 and a 200-day simple moving average of $280.87.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. The company had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a return on equity of 38.37% and a net margin of 15.61%.The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period last year, the business posted $1.60 earnings per share. Analysts predict that International Business Machines Corporation will post 12.34 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. International Business Machines’s dividend payout ratio is 60.27%.

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.