International Business Machines (NYSE:IBM) Stock Price Down 1.2% – Time to Sell?

International Business Machines Corporation (NYSE:IBM)’s share price was down 1.2% during mid-day trading on Tuesday . The stock traded as low as $229.90 and last traded at $231.12. Approximately 3,207,106 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 7,858,880 shares. The stock had previously closed at $233.87.

Key International Business Machines News

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

• Positive Sentiment: IBM reported a 25-fold throughput improvement in a quantum-computing workload, highlighting progress in making its technology more practical and potentially strengthening its position in the emerging quantum market. Quantum Computing News: IBM Hits 25x Throughput Gain
• Positive Sentiment: IBM Ventures invested in physics-acceleration company BQP as its bookings reportedly climbed eightfold. The investment expands IBM’s exposure to specialized computing applications and supports its broader quantum and advanced-computing strategy. IBM Ventures backs physics acceleration firm BQP
• Positive Sentiment: IBM remains viewed by some investors as a long-term AI beneficiary because of its enterprise customer base, hybrid-cloud capabilities and software exposure. Its $1.69-per-share dividend also provides a substantial shareholder-income component, although the comparison article is not a new dividend announcement. Retail Investors’ 2 Favorite AI Stocks for the Long Term Cisco vs. IBM: A Dividend Showdown
• Neutral Sentiment: IBM’s research found that AI adoption is moving faster than K-12 schools’ readiness, alongside the launch of an AI-leadership fellowship. The initiative supports IBM’s responsible-AI brand and potential education relationships, but is unlikely to materially affect near-term revenue. New IBM Study Finds AI Adoption Is Outpacing K-12 Readiness
• Negative Sentiment: A securities law firm announced an investigation into whether IBM misrepresented the pace of business deals. The announcement appears to be an attorney solicitation rather than a finding of wrongdoing, but it can pressure the stock by increasing legal, disclosure and investor-confidence risks. IBM Under Investigation for Securities Fraud

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on IBM shares. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines in a research report on Thursday, July 23rd. Roth Capital reaffirmed a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Wall Street Zen upgraded International Business Machines from a “sell” rating to a “hold” rating in a research report on Saturday, August 29th. Citigroup reduced their target price on International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. Finally, HSBC set a $175.00 price target on International Business Machines and gave the stock a “reduce” rating in a research note on Thursday, July 16th. Sixteen research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $265.90.

International Business Machines Stock Performance

The stock has a market capitalization of $220.10 billion, a P/E ratio of 20.73, a PEG ratio of 2.21 and a beta of 0.71. The business has a 50-day moving average price of $242.89 and a 200 day moving average price of $247.41. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines’s revenue was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.80 EPS. As a group, sell-side analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. International Business Machines’s dividend payout ratio (DPR) is 59.98%.

Insider Transactions at International Business Machines

In other news, SVP Robert David Thomas sold 25,000 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Basepoint Wealth LLC purchased a new stake in International Business Machines during the fourth quarter valued at approximately $25,000. Portus Wealth Advisors LLC purchased a new stake in International Business Machines in the first quarter worth about $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines in the second quarter worth about $27,000. Cornerstone Financial Management LLC purchased a new position in shares of International Business Machines during the 4th quarter valued at about $28,000. Finally, Hara Capital LLC purchased a new position in shares of International Business Machines during the 2nd quarter valued at about $28,000. Institutional investors own 58.96% of the company’s stock.

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.