International Business Machines (NYSE:IBM) Shares Down 1.7% – Time to Sell?

International Business Machines Corporation (NYSE:IBM) was down 1.7% during trading on Tuesday . The stock traded as low as $219.22 and last traded at $219.6620. Approximately 6,021,063 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 5,957,019 shares. The stock had previously closed at $223.55.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Jefferies said IBM is well positioned to accelerate software growth and capitalize on enterprise AI demand, pointing to a strong pipeline and underappreciated AI exposure. IBM well-positioned to benefit from enterprise AI demand
• Positive Sentiment: IBM launched new Red Hat AI and virtualization managed services on IBM Cloud, which could support cloud adoption and deepen enterprise AI usage. IBM Announces Red Hat AI Inference and Red Hat OpenShift Virtualization Service on IBM Cloud
• Positive Sentiment: Analysts and market commentary continue to frame IBM as a relatively attractive AI tech name thanks to hybrid-cloud demand, watsonx upgrades, and steady cash generation. IBM vs. Qualcomm: Which AI Tech Stock is the Better Buy Now?
• Neutral Sentiment: Additional commentary asked why IBM remains in focus after its earnings beat, suggesting investors are still weighing execution on the AI/software pivot against broader stock weakness. IBM Beats Earnings Expectations—So Why Is The Stock Still Sliding And Momentum Collapsing?
• Negative Sentiment: IBM is also facing a lawsuit alleging racially discriminatory layoffs involving Black executives, which could add governance and reputational risk. IBM Lawsuit Over Black Executive Layoffs Tests Governance And ESG Story

Analyst Upgrades and Downgrades

Several research analysts have recently commented on IBM shares. Wedbush reaffirmed an “outperform” rating and issued a $320.00 price objective on shares of International Business Machines in a research note on Wednesday, May 6th. Evercore lifted their target price 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 downgraded International Business Machines from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, May 4th. Jefferies Financial Group cut their price target on International Business Machines from $370.00 to $320.00 and set a “buy” rating for the company in a report on Monday, April 20th. Finally, UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price target for the company in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, International Business Machines has an average rating of “Moderate Buy” and an average target price of $294.41.

International Business Machines Price Performance

The firm has a market cap of $206.46 billion, a PE ratio of 19.42, a PEG ratio of 2.38 and a beta of 0.58. The firm has a fifty day simple moving average of $242.51 and a two-hundred day simple moving average of $277.03. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.60 EPS. Equities analysts predict that International Business Machines Corporation will post 12.4 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, May 8th. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is presently 59.77%.

Insiders Place Their Bets

In other news, Director Michael Miebach bought 434 shares of the firm’s stock in a transaction on Wednesday, February 25th. The stock was acquired at an average cost of $233.33 per share, with a total value of $101,265.22. Following the transaction, the director directly owned 434 shares in the company, valued at approximately $101,265.22. This trade represents a ∞ increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.27% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On International Business Machines

Institutional investors and hedge funds have recently bought and sold shares of the company. Basepoint Wealth LLC bought a new stake in International Business Machines during the 4th quarter valued at $25,000. Family CFO Inc bought a new stake in International Business Machines during the 4th quarter valued at $25,000. Joseph Group Capital Management bought a new stake in International Business Machines during the 4th quarter valued at $28,000. Cornerstone Financial Management LLC bought a new stake in International Business Machines during the 4th quarter valued at $28,000. Finally, Mountain Hill Investment Partners Corp. bought a new stake in International Business Machines during the 3rd quarter valued at $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.