International Business Machines (NYSE:IBM) Stock Price Down 2.1% Following Weak Earnings

International Business Machines Corporation (NYSE:IBM) fell 2.1% during trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $204.73 and last traded at $206.0290. Approximately 13,496,854 shares were traded during 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, missing analysts’ consensus estimates of $2.97 by ($0.04). The business had revenue of $17.16 billion for the quarter, compared to analysts’ expectations of $17.86 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%.

More International Business Machines News

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

• Positive Sentiment: Some commentary suggests IBM may be undervalued after the pullback, with one valuation-focused article arguing the stock could be a bargain at current levels. IBM Stock Looks Like A Bargain At Current Levels
• Positive Sentiment: One earnings-preview piece highlighted continued AI momentum as a potential factor that could help restore investor confidence if management delivers reassuring guidance. IBM Earnings in Focus: Can AI momentum revive investor confidence?
• Neutral Sentiment: IBM is due to report full Q2 results, and several previews say the market is focused on management’s outlook, sales pipeline commentary, dividend support, and whether the company can explain the recent profit warning. IBM to Report Full Q2 Results After Its Historic Stock Crash – Here’s What Investors Will Watch
• Negative Sentiment: Multiple law firms have launched securities-fraud investigations into IBM following the steep stock drop and the July 14 guidance cut, adding headline risk and reinforcing concerns about the quality of prior disclosures. IBM Investigation Notice: IBM Product Slowdown and 25% Stock Drop Trigger Securities Fraud Investigation

Analyst Ratings Changes

IBM has been the subject of a number of research reports. Barclays cut their target price on shares of International Business Machines from $350.00 to $288.00 and set an “overweight” rating for the company in a research note on Tuesday. Argus lowered their price objective on International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a report on Thursday, July 16th. Morgan Stanley boosted their price objective on International Business Machines from $267.00 to $293.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 14th. Sanford C. Bernstein restated a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Finally, KeyCorp downgraded International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. Fifteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $278.68.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of IBM. Basepoint Wealth LLC acquired a new position in International Business Machines during the fourth quarter worth $25,000. Family CFO Inc acquired a new stake in shares of International Business Machines in the 4th quarter worth $25,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines in the 4th quarter worth $28,000. Cornerstone Financial Management LLC purchased a new position in shares of International Business Machines during the 4th quarter worth $28,000. Finally, SWAN Capital LLC purchased a new position in shares of International Business Machines during the 3rd quarter worth $28,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Stock Performance

The stock has a market cap of $193.64 billion, a price-to-earnings ratio of 18.22, a PEG ratio of 2.30 and a beta of 0.68. The firm’s 50-day moving average price is $263.44 and its two-hundred day moving average price is $262.05. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

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.