International Business Machines (NYSE:IBM) Stock Price Down 3% on Analyst Downgrade

International Business Machines Corporation (NYSE:IBM) dropped 3% during mid-day trading on Friday after Wall Street Zen downgraded the stock from a hold rating to a sell rating. The company traded as low as $210.22 and last traded at $212.54. 13,070,110 shares changed hands during trading, an increase of 62% from the average session volume of 8,048,274 shares. The stock had previously closed at $219.05.

Several other brokerages have also recently issued reports on IBM. Citigroup dropped their target price on International Business Machines from $375.00 to $255.00 and set a “buy” rating on the stock in a research report on Friday. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price objective for the company in a research note on Friday, April 24th. Jefferies Financial Group assumed coverage on International Business Machines in a research report on Tuesday, June 23rd. They set a “buy” rating on the stock. Wedbush set a $350.00 price target on shares of International Business Machines in a research report on Tuesday, June 2nd. Finally, HSBC set a $175.00 price target on shares of International Business Machines and gave the company a “reduce” rating in a report on Thursday. Fifteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $292.89.

More International Business Machines News

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

• Positive Sentiment: IBM launched new Power server products aimed at automation, app modernization, and local AI inferencing, which could support its enterprise AI push over time.
• Positive Sentiment: JPMorgan kept an overweight rating on IBM even after cutting its price target to $250, indicating Wall Street still sees upside from current levels.
• Positive Sentiment: Some analysts say the stock’s sharp decline may have pushed it into oversold territory, which could attract bargain hunters if sentiment stabilizes.
• Neutral Sentiment: IBM heads into its July 22 earnings report with investors focused on whether the company can validate its AI and cloud momentum after the warning.
• Neutral Sentiment: Analysts at Zacks and others are debating whether the selloff is an opportunity or a sign to wait, reflecting uncertainty rather than a clear fundamental shift.
• Negative Sentiment: IBM’s preliminary Q2 miss and weak near-term outlook are the main reasons the stock is falling, as they suggest slower growth and margin pressure.
• Negative Sentiment: Multiple law firms have announced securities-fraud investigations after the plunge, which can keep negative headlines around the stock.
• Negative Sentiment: Analyst sentiment is turning more cautious, with some estimate reductions and technical warnings reinforcing bearish momentum.

Institutional Investors Weigh In On International Business Machines

Several institutional investors and hedge funds have recently made changes to their positions in IBM. Family CFO Inc acquired a new stake in International Business Machines during the 4th quarter worth about $25,000. Basepoint Wealth LLC acquired a new position in shares of International Business Machines in the fourth quarter valued at about $25,000. Portus Wealth Advisors LLC purchased a new position in shares of International Business Machines in the first quarter worth about $26,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines during the fourth quarter worth about $28,000. Finally, Cornerstone Financial Management LLC acquired a new stake in shares of International Business Machines during the fourth quarter worth about $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Trading Down 3.0%

The stock has a 50-day moving average of $263.84 and a 200 day moving average of $263.58. 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 cap of $199.76 billion, a PE ratio of 18.79, a price-to-earnings-growth ratio of 2.13 and a beta of 0.68.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate of $1.81 by $0.10. The business had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the business posted $1.60 EPS. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were given a dividend of $1.69 per share. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Friday, May 8th. International Business Machines’s payout ratio is presently 59.77%.

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.