International Business Machines (NYSE:IBM) Trading Down 1.5% – Here’s Why

International Business Machines Corporation (NYSE:IBM) shares fell 1.5% during mid-day trading on Monday . The stock traded as low as $264.80 and last traded at $268.1930. 7,058,024 shares traded hands during mid-day trading, a decline of 1% from the average session volume of 7,127,987 shares. The stock had previously closed at $272.24.

International Business Machines News Summary

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

• Positive Sentiment: IBM highlighted a new global study showing enterprises are struggling with AI dependencies and sovereignty, underscoring demand for IBM’s governance, security, and hybrid-cloud offerings. IBM Study: Limited Control and Rising Dependencies Leave Enterprises Exposed in the Age of AI
• Positive Sentiment: IBM and Cirata expanded their alliance with an OEM deal for the Symphony data platform, aimed at easing AI data bottlenecks and improving large-scale data movement for enterprise AI workflows. IBM (IBM) Launches Big Replicate With Cirata To Tackle AI Data Bottlenecks
• Positive Sentiment: Apptio, an IBM company, launched new AI-powered capabilities to help customers turn technology spending into measurable business outcomes, reinforcing IBM’s software and optimization story. Apptio Unveils Conversational Insights and New Suite of AI-Powered Capabilities
• Neutral Sentiment: Analysts published fresh commentary on IBM, including valuation-focused coverage and a rating upgrade, which may help sentiment but does not appear tied to a major business catalyst. Analysts Offer Insights on Technology Companies: International Business Machines (IBM) and Interlink Electronics (LINK)
• Neutral Sentiment: Broader market weakness after the Fed’s policy update could weigh on IBM along with other large-cap stocks, even though it is not IBM-specific. Nasdaq, US stocks slide as Fed forecasts possible rate hike
• Negative Sentiment: IBM also faced some caution from articles suggesting the stock had recently fallen meaningfully from prior highs, which may reflect lingering valuation concerns despite the AI optimism. Buy, Hold, or Sell: IBM Just Shed 16% Is It a Clear Buy at $268?

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on IBM. Wedbush set a $350.00 target price on International Business Machines in a research note on Tuesday, June 2nd. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target for the company in a research report on Friday, April 24th. Morgan Stanley boosted their target price on International Business Machines from $215.00 to $225.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 23rd. Royal Bank Of Canada restated an “outperform” rating on shares of International Business Machines in a research report on Thursday, May 28th. Finally, HSBC upgraded International Business Machines from a “reduce” rating to a “hold” rating and upped their price objective for the stock from $218.00 to $231.00 in a report on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $304.17.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The business has a 50 day moving average price of $251.20 and a two-hundred day moving average price of $269.32. The company has a market cap of $246.29 billion, a P/E ratio of 23.17, a price-to-earnings-growth ratio of 2.81 and a beta of 0.67.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $15.60 billion. During the same quarter in the previous year, the business posted $1.60 earnings per share. The firm’s revenue for the quarter was up 9.5% compared to the same quarter last year. On average, sell-side analysts anticipate that International Business Machines Corporation will post 12.38 earnings per share for the current year.

International Business Machines Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were issued a $1.69 dividend. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date was Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 2.6%. International Business Machines’s dividend payout ratio (DPR) is currently 59.77%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Brighton Jones LLC increased its position in International Business Machines by 12.4% during the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock valued at $4,619,000 after buying an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC raised its stake in International Business Machines by 10.6% during the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after buying an additional 186 shares during the last quarter. Jump Financial LLC purchased a new position in International Business Machines during the second quarter valued at $211,000. Ieq Capital LLC raised its stake in International Business Machines by 2.2% during the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock valued at $11,383,000 after buying an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP raised its stake in International Business Machines by 11.6% during the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock valued at $300,000 after buying an additional 106 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors.

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.