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

International Business Machines Corporation (NYSE:IBM)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $302.05, but opened at $285.84. International Business Machines shares last traded at $296.4230, with a volume of 1,515,148 shares traded.

More International Business Machines News

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

• Positive Sentiment: IBM unveiled major upgrades to IBM Bob, its agentic software development platform, adding multi-agent AI capabilities, cost and usage analytics, and specialized modernization workflows for IBM Z, IBM i, and Java. The update reinforces IBM’s push into enterprise AI software and modernization services. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
• Positive Sentiment: IBM also announced progress in quantum computing, including work with Oak Ridge and Cleveland Clinic to model fusion fuel production. Investors may view this as another sign of IBM’s long-term technology leadership and optionality in high-growth areas. IBM’s Quantum Breakthrough Sends Massive Clean Energy Signal
• Positive Sentiment: IBM continues to benefit from strong interest in its mainframe and infrastructure lineup, including the new z17 and LinuxONE 5 systems, which are aimed at helping enterprises modernize data centers while adding AI and security features. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
• Neutral Sentiment: IBM’s role powering high-visibility events like Wimbledon highlights the strength of its AI and digital-transformation offerings, but this is more of a brand and credibility story than an immediate earnings driver. 750 million fans and 2.7 million data points: How IBM’s AI powers Wimbledon from hidden ‘Court 19’
• Negative Sentiment: One article said IBM shares fell after reports that Starbucks is using AI to cut its $400 million software bill, which could signal that major customers may try to reduce reliance on IBM software or negotiate harder on pricing. IBM Stock Drops After Report That Starbucks Is Using AI to Cut Its $400 Million Software Bill

Analyst Ratings Changes

A number of research firms have recently commented on IBM. Weiss Ratings lowered International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th. Barclays started coverage on International Business Machines in a report on Monday, June 1st. They issued an “overweight” rating and a $350.00 target price on the stock. Oppenheimer dropped their price target on International Business Machines from $380.00 to $320.00 and set an “outperform” rating on the stock in a research report on Thursday, April 16th. Wedbush set a $350.00 price target on shares of International Business Machines in a report on Tuesday, June 2nd. Finally, Needham & Company LLC started coverage on shares of International Business Machines in a report on Wednesday, June 3rd. They set a “buy” rating on the stock. Sixteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and an average target price of $306.47.

International Business Machines Price Performance

The stock has a market capitalization of $278.27 billion, a P/E ratio of 26.16, a price-to-earnings-growth ratio of 2.95 and a beta of 0.68. 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 stock has a 50-day simple moving average of $261.32 and a 200 day simple moving average of $266.06.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same period last year, the firm earned $1.60 earnings per share. On average, equities analysts forecast that International Business Machines Corporation will post 12.45 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were given a dividend of $1.69 per share. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s payout ratio is currently 59.77%.

Institutional Investors Weigh In On International Business Machines

Institutional investors have recently added to or reduced their stakes in the stock. Family CFO Inc bought a new position in International Business Machines during the 4th quarter worth about $25,000. Basepoint Wealth LLC bought a new stake in shares of International Business Machines in the fourth quarter valued at about $25,000. Portus Wealth Advisors LLC acquired a new position in shares of International Business Machines during the first quarter worth about $26,000. Joseph Group Capital Management acquired a new position in shares of International Business Machines during the fourth quarter worth about $28,000. Finally, Cornerstone Financial Management LLC bought a new position in shares of International Business Machines during the fourth quarter worth about $28,000. 58.96% of the stock is owned by institutional investors.

About International Business Machines

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.