International Business Machines (NYSE:IBM) Shares Down 1.8% – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s stock price fell 1.8% during mid-day trading on Thursday . The stock traded as low as $256.00 and last traded at $258.3580. 8,440,736 shares traded hands during trading, an increase of 16% from the average session volume of 7,288,044 shares. The stock had previously closed at $262.96.

International Business Machines News Roundup

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

• Positive Sentiment: IBM unveiled the world’s first sub-1 nanometer chip technology, a breakthrough that could make AI chips smaller, faster, and more energy efficient. The announcement has been framed as a major advance for IBM’s semiconductor and AI ambitions, and it helped lift sentiment around the stock. Reuters article on IBM unveils tech for chip smaller than 1 nanometer in AI computing push
• Positive Sentiment: The chip news also prompted several outlets to note that IBM shares popped in premarket trading, with some reports highlighting the potential for a 0.7nm architecture to improve performance and power efficiency. That suggests traders are treating the announcement as a meaningful innovation story rather than just a long-dated research update. Yahoo Finance article on IBM Unveils Prototype for Sub-1-Nanometer AI Chip. Why It Matters.
• Positive Sentiment: JPMorgan recently upgraded IBM, citing improving software growth and a stronger outlook tied to AI and cybersecurity opportunities. Analyst optimism is adding support to the stock and reinforcing the view that IBM’s earnings mix is improving. MSN article on JPMorgan just upgraded IBM stock
• Positive Sentiment: IBM also drew attention after news of its OpenAI cybersecurity collaboration, which investors see as another way to monetize AI beyond core infrastructure and consulting. This helped reinforce the AI growth narrative surrounding IBM. Barchart article on IBM and OpenAI Just Partnered on Cybersecurity
• Neutral Sentiment: Other coverage noted that IBM’s breakthrough is impressive, but commercial production may still be several years away. That tempers the immediate earnings impact, even if the announcement strengthens IBM’s long-term competitive positioning. TipRanks article on IBM stock pops on creating the world’s tiniest AI chip

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Needham & Company LLC assumed coverage on shares of International Business Machines in a research report on Wednesday, June 3rd. They set a “buy” rating on the stock. Weiss Ratings upgraded shares of International Business Machines from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, June 9th. Stifel Nicolaus set a $290.00 price target on International Business Machines in a research note on Friday, May 22nd. HSBC upgraded shares of International Business Machines from a “reduce” rating to a “hold” rating and lifted their price objective for the stock from $218.00 to $231.00 in a research note on Tuesday, April 28th. Finally, Roth Mkm reiterated a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $306.94.

International Business Machines Stock Down 1.8%

The business has a 50-day simple moving average of $252.95 and a 200-day simple moving average of $267.58. The company has a market cap of $242.83 billion, a PE ratio of 22.84, a P/E/G ratio of 2.74 and a beta of 0.67. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping the consensus estimate of $1.81 by $0.10. The company had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The firm’s revenue was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.60 EPS. Equities research analysts anticipate that International Business Machines Corporation will post 12.39 EPS for the current year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were paid a $1.69 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 2.6%. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio is currently 59.77%.

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. Basecamp Wealth Advisors LLC boosted its position in shares of International Business Machines by 2.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,598 shares of the technology company’s stock valued at $387,000 after acquiring an additional 44 shares during the last quarter. Redwood Investment Management LLC grew its holdings in shares of International Business Machines by 112.9% in the first quarter. Redwood Investment Management LLC now owns 5,781 shares of the technology company’s stock valued at $1,401,000 after purchasing an additional 3,066 shares in the last quarter. Sapient Capital LLC increased its holdings in International Business Machines by 64.6% during the 1st quarter. Sapient Capital LLC now owns 4,628 shares of the technology company’s stock worth $1,122,000 after purchasing an additional 1,816 shares during the period. Steelhead Wealth Management LLC acquired a new stake in shares of International Business Machines in the 1st quarter valued at $369,000. Finally, Shariaportfolio Inc. purchased a new stake in International Business Machines during the 1st quarter worth about $278,000. Institutional investors and hedge funds 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.