International Business Machines (NYSE:IBM) Stock Price Down 2.1% on Disappointing Earnings

International Business Machines Corporation (NYSE:IBM)’s share price was down 2.1% on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $204.73 and last traded at $206.0290. 13,496,854 shares changed hands during mid-day trading, an increase of 66% from the average daily volume of 8,118,879 shares. The stock had previously closed at $210.50.

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 for the quarter, compared to the consensus estimate of $17.48 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business’s revenue was up 1.1% on a year-over-year basis. During the same period in the prior year, the business earned $2.80 earnings per share.

International Business Machines News Roundup

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

• Positive Sentiment: IBM’s earnings matched Wall Street’s EPS estimate, and the company continues to emphasize AI-driven productivity, quantum computing, and strong free-cash-flow generation. IBM (IBM) Matches Q2 Earnings Estimates
• Neutral Sentiment: After the release, IBM shares saw some after-hours recovery as investors focused on long-term AI and quantum initiatives rather than the immediate headline miss. IBM just cut its outlook. Why its stock is bouncing anyway.
• Negative Sentiment: IBM lowered full-year revenue guidance and posted weaker sales than expected, with mainframe revenue notably under pressure, raising concerns about near-term growth. IBM Lowers Its Growth Outlook as Sales of Data Center Mainframes Sink 42%
• Negative Sentiment: Multiple law firms announced securities-fraud investigations following IBM’s sharp stock decline and guidance cut, adding an overhang for investors. IBM Investigated by the Portnoy Law Firm

Analyst Ratings Changes

Several equities research analysts have issued reports on IBM shares. Barclays decreased their price target on shares of International Business Machines from $350.00 to $288.00 and set an “overweight” rating on the stock in a research note on Tuesday. Morgan Stanley upped their price objective on shares of International Business Machines from $267.00 to $293.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 14th. Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Jefferies Financial Group lowered their target price on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Wall Street Zen downgraded International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, July 18th. Fifteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, International Business Machines presently has a consensus rating of “Moderate Buy” and a consensus price target of $278.68.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of IBM. VIRGINIA RETIREMENT SYSTEMS ET Al raised its stake in shares of International Business Machines by 424.6% in the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock worth $77,234,000 after buying an additional 211,040 shares in the last quarter. Assetmark Inc. boosted its stake in International Business Machines by 24.8% during the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock valued at $15,624,000 after buying an additional 12,791 shares in the last quarter. GLOBALT Investments LLC GA grew its holdings in International Business Machines by 19.1% during the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock worth $5,417,000 after acquiring an additional 2,930 shares during the period. Newbridge Financial Services Group Inc. grew its holdings in International Business Machines by 30.0% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after acquiring an additional 3,029 shares during the period. Finally, Rice Partnership LLC bought a new stake in International Business Machines in the fourth quarter worth about $3,317,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Trading Down 2.1%

The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The stock has a market capitalization of $193.64 billion, a P/E ratio of 18.22, a PEG ratio of 2.27 and a beta of 0.68. The firm’s 50-day simple moving average is $263.26 and its 200 day simple moving average is $261.42.

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.