International Business Machines (NYSE:IBM) Trading Down 1.9% – Time to Sell?

International Business Machines Corporation (NYSE:IBM)’s share price fell 1.9% on Wednesday . The stock traded as low as $296.35 and last traded at $296.8350. 2,800,770 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 3,949,838 shares. The stock had previously closed at $302.47.

Key International Business Machines News

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

• Positive Sentiment: IBM finalized its acquisition of Confluent and hit a quantum milestone, reinforcing its data-streaming and advanced-computing strategy — a clear strategic catalyst for revenue and tech leadership. IBM’s Strategic Expansion: Confluent Acquisition Finalized and Quantum Milestone Reached
• Positive Sentiment: Analysts and research note that the Confluent deal should boost EBITDA and free cash flow through margin and scale improvements, supporting valuation upside and cash-return capacity. IBM’s (IBM) Confluent Deal Expected to Boost EBITDA and Free Cash Flow
• Positive Sentiment: Several analysts issued buy/upbeat commentary citing software acceleration and stronger growth prospects for 2026, which lifts investor confidence in forward earnings momentum. IBM Earns Buy Rating as Analysts See Software Acceleration Ahead in 2026
• Neutral Sentiment: Preview pieces outline expectations for IBM’s next earnings report (consensus looking for continued top-line and margin progress); results that beat/confirm guidance could reinforce the current rally. Here’s What to Expect From International Business Machines’ Next Earnings Report
• Neutral Sentiment: IBM research (with the National Retail Federation) finds AI influences shoppers before store visits, supporting demand for IBM’s AI/analytics offerings in retail — a positive narrative but not an immediate revenue shock. AI Is Influencing Shoppers Before They Enter Stores, IBM Study Says
• Neutral Sentiment: Market commentary asks whether it’s too late to buy IBM after a strong multi-year run — discussion focuses on valuation metrics (higher P/E) versus continued growth potential. Is It Too Late To Consider Buying IBM (IBM) After Its Strong Five Year Run?
• Neutral Sentiment: Feature pieces projecting a stronger 2026 point to upside if IBM sustains software/AI momentum, but they are forward-looking and contingent on execution. IBM Stock Had a Good 2025. It Could Have an Even Better 2026.
• Neutral Sentiment: Coverage of Datavault AI’s expanded collaboration with IBM highlights partner-led adoption of IBM edge/AI tech; Datavault’s own stock volatility is not a material event for IBM but signals ecosystem demand. What’s Going On With Datavault AI Stock Thursday?
• Neutral Sentiment: Reporting that Datavault shares fell after a major shareholder sale notes short-term partner-stock noise; this is relevant to the partnership narrative but not materially negative for IBM. Datavault AI (DVLT) Stock Falls Friday After Major Shareholder Dumps 14.7M Shares

Analysts Set New Price Targets

Several brokerages have commented on IBM. Weiss Ratings raised International Business Machines from a “hold (c+)” rating to a “buy (b)” rating in a report on Saturday, October 25th. Bank of America increased their target price on International Business Machines from $310.00 to $315.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. Erste Group Bank raised shares of International Business Machines from a “hold” rating to a “buy” rating in a report on Friday, December 5th. Jefferies Financial Group raised shares of International Business Machines from a “hold” rating to a “buy” rating and increased their price objective for the company from $300.00 to $360.00 in a report on Monday. Finally, UBS Group reiterated a “sell” rating on shares of International Business Machines in a research report on Tuesday, December 9th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $301.85.

International Business Machines Price Performance

The firm has a market cap of $284.49 billion, a PE ratio of 36.41, a price-to-earnings-growth ratio of 2.80 and a beta of 0.70. The stock’s fifty day moving average price is $303.55 and its 200-day moving average price is $282.05. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.93 and a quick ratio of 0.89.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, October 22nd. The technology company reported $2.65 earnings per share for the quarter, topping the consensus estimate of $2.45 by $0.20. International Business Machines had a net margin of 12.09% and a return on equity of 37.76%. The firm had revenue of $16.33 billion for the quarter, compared to the consensus estimate of $16.10 billion. During the same period last year, the firm posted $2.30 earnings per share. The company’s revenue for the quarter was up 9.1% on a year-over-year basis. As a group, equities analysts expect that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Monday, November 10th were given a $1.68 dividend. The ex-dividend date was Monday, November 10th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.2%. International Business Machines’s dividend payout ratio is 80.38%.

Hedge Funds Weigh In On International Business Machines

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in shares of International Business Machines during the 2nd quarter worth about $2,011,122,000. Capital World Investors boosted its stake in International Business Machines by 13.9% during the third quarter. Capital World Investors now owns 17,045,156 shares of the technology company’s stock worth $4,809,461,000 after buying an additional 2,077,506 shares during the period. Vanguard Group Inc. increased its position in shares of International Business Machines by 2.1% during the second quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company’s stock valued at $28,019,274,000 after acquiring an additional 1,913,708 shares during the last quarter. Laurel Wealth Advisors LLC raised its stake in shares of International Business Machines by 27,928.2% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company’s stock valued at $561,001,000 after acquiring an additional 1,896,326 shares during the period. Finally, First Trust Advisors LP lifted its holdings in shares of International Business Machines by 39.6% in the 3rd quarter. First Trust Advisors LP now owns 3,052,880 shares of the technology company’s stock worth $861,401,000 after acquiring an additional 865,253 shares during the last quarter. Hedge funds and other institutional investors 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.