International Business Machines (NYSE:IBM) Reaches New 12-Month Low – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s share price hit a new 52-week low on Wednesday . The company traded as low as $211.60 and last traded at $213.1390, with a volume of 18186538 shares trading hands. The stock had previously closed at $217.07.

Key International Business Machines News

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

• Negative Sentiment: IBM’s weak Q2 pre-announcement missed Wall Street estimates and pointed to softer software and enterprise demand as customers redirected spending toward AI infrastructure. IBM Just Pre-Announced an Earnings Miss. The Reason Reveals Where AI Money Is Really Flowing.
• Negative Sentiment: Analysts have begun cutting estimates and lowering price targets after the warning, signaling that the market expects slower growth near term. IBM Q2 preview miss prompts analysts to cut estimates on softer demand
• Negative Sentiment: Multiple law firms announced securities-fraud investigations following the sharp drop, which can add overhang and keep investors cautious. IBM Legal Notice: IBM is being Investigated for Securities Fraud – Investors Notified to Contact BFA Law if You Suffered Losses
• Negative Sentiment: Media coverage has highlighted IBM’s worst single-day collapse in decades, which can reinforce momentum selling and weaken confidence in the stock. The Boardroom Debate That Led to IBM’s Historic 25% Stock Plunge

Analyst Upgrades and Downgrades

IBM has been the topic of several research reports. KeyCorp downgraded International Business Machines to a “sector weight” rating in a research report on Tuesday, June 23rd. Roth Capital reiterated a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research note on Thursday. Jefferies Financial Group started coverage on International Business Machines in a report on Tuesday, June 23rd. They issued a “buy” rating on the stock. Finally, DZ Bank raised shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price on the stock in a research note on Friday, April 24th. Fifteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus target price of $301.83.

International Business Machines Trading Up 3.9%

The business’s 50-day simple moving average is $264.17 and its two-hundred day simple moving average is $263.94. The firm has a market capitalization of $206.21 billion, a price-to-earnings ratio of 19.40, a PEG ratio of 2.06 and a beta of 0.68. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

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, topping the consensus estimate of $1.81 by $0.10. The firm had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines’s revenue was up 9.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.60 EPS. Equities analysts forecast that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Friday, May 8th. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is 59.77%.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC raised its stake 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 acquiring an additional 2,323 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of International Business Machines by 10.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after purchasing an additional 186 shares during the last quarter. Jump Financial LLC purchased a new position in shares of International Business Machines in the 2nd quarter valued at approximately $211,000. Ieq Capital LLC increased its holdings in shares of International Business Machines by 2.2% in the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock valued at $11,383,000 after purchasing an additional 843 shares during the period. Finally, Vivaldi Capital Management LP increased its holdings in shares of International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock valued at $300,000 after purchasing an additional 106 shares during the period. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.