International Business Machines (NYSE:IBM) Shares Down 1.6% – Here’s Why

Shares of International Business Machines Corporation (NYSE:IBM) were down 1.6% on Tuesday . The stock traded as low as $246.55 and last traded at $249.3460. Approximately 4,904,884 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 6,155,000 shares. The stock had previously closed at $253.33.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM won a customer engagement with SEI to deploy agentic AI and automation, a commercial validation of IBM’s software and services strategy that could drive recurring revenue and higher-margin services over time. SEI Engages IBM to Accelerate Enterprise Transformation Through Agentic AI
• Positive Sentiment: IBM announced a collaboration with Lam Research to advance sub-1nm logic scaling — a strategic R&D move that supports IBM’s chip roadmap and long-term IP/value creation in advanced nodes. IBM and Lam Research Announce Collaboration to Advance Sub-1nm Logic Scaling
• Neutral Sentiment: Industry reports and market commentary continue to list IBM among leaders in digitalization opportunities (e.g., digital oilfield solutions) and note elevated investor attention — these signals highlight TAM exposure but are not immediate share-price catalysts. Digital Oilfield Solutions Industry Report 2026-2035
• Neutral Sentiment: Coverage and “most-searched” articles (Zacks, Yahoo Finance summaries) are increasing visibility; useful context for retail/institutional flows but not a direct driver on their own. International Business Machines Corporation (IBM) is Attracting Investor Attention
• Negative Sentiment: A TipRanks report highlighted IBM’s 2026 X-Force Threat Intelligence Index and framed a sharp increase in cybersecurity threats as a “bombshell,” raising near-term operational and reputational risk concerns that likely pressured the stock. IBM Stock Plummets as Tech Giant Releases Bombshell Cybersecurity Report
• Negative Sentiment: Morgan Stanley cut its price target on IBM (from $304 to $247) and flagged AI disruption risks — a respected sell-side move that can influence institutional positioning and reinforced the downward pressure. Morgan Stanley Lowers PT on International Business Machines Corporation (IBM) Stock

Analyst Upgrades and Downgrades

A number of research firms have weighed in on IBM. Erste Group Bank cut shares of International Business Machines from a “buy” rating to a “hold” rating in a research report on Wednesday, February 18th. Evercore raised their price objective on International Business Machines from $330.00 to $345.00 and gave the company an “outperform” rating in a research note on Thursday, January 29th. Weiss Ratings reiterated a “buy (b)” rating on shares of International Business Machines in a research note on Thursday, January 22nd. DZ Bank upgraded shares of International Business Machines to a “hold” rating in a research note on Wednesday, February 11th. Finally, Sanford C. Bernstein reiterated a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $320.87.

International Business Machines Trading Down 1.6%

The company has a debt-to-equity ratio of 1.67, a current ratio of 0.96 and a quick ratio of 0.92. The business’s fifty day simple moving average is $280.69 and its 200 day simple moving average is $284.68. The stock has a market cap of $233.89 billion, a price-to-earnings ratio of 22.36, a P/E/G ratio of 2.59 and a beta of 0.73.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. The company had revenue of $19.69 billion for the quarter, compared to the consensus estimate of $19.23 billion. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same period last year, the firm posted $3.92 EPS. On average, research analysts predict that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be issued a $1.68 dividend. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $6.72 annualized dividend and a dividend yield of 2.7%. International Business Machines’s dividend payout ratio (DPR) is 60.27%.

Insiders Place Their Bets

In related news, Director Michael Miebach bought 434 shares of the company’s stock in a transaction on Wednesday, February 25th. The shares were purchased at an average cost of $233.33 per share, with a total value of $101,265.22. Following the completion of the transaction, the director directly owned 434 shares of the company’s stock, valued at approximately $101,265.22. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director David N. Farr bought 1,000 shares of the business’s stock in a transaction on Friday, January 30th. The stock was bought at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the purchase, the director directly owned 9,258 shares of the company’s stock, valued at $2,814,432. The trade was a 12.11% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have purchased 1,484 shares of company stock valued at $417,157. 0.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently added to or reduced their stakes in IBM. Family CFO Inc acquired a new position in International Business Machines during the 4th quarter worth $25,000. Basepoint Wealth LLC bought a new position in International Business Machines in the 4th quarter valued at about $25,000. Winnow Wealth LLC bought a new stake in shares of International Business Machines during the 2nd quarter worth about $27,000. Mountain Hill Investment Partners Corp. acquired a new stake in shares of International Business Machines in the 3rd quarter worth approximately $28,000. Finally, Joseph Group Capital Management bought a new position in shares of International Business Machines in the fourth quarter valued at approximately $28,000. 58.96% of the stock is 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.