International Business Machines (NYSE:IBM) Trading Down 1.3% – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s share price fell 1.3% during trading on Wednesday . The stock traded as low as $295.59 and last traded at $302.1750. 6,332,023 shares were traded during trading, a decline of 13% from the average session volume of 7,279,121 shares. The stock had previously closed at $306.13.

International Business Machines News Roundup

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

• Positive Sentiment: IBM continues to get credit for progress in quantum computing and enterprise AI, including new multi-agent software development tools and modernization workflows that could support longer-term growth. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
• Positive Sentiment: IBM and Red Hat recently commercialized “Lightwell,” a cybersecurity-related launch that suggests the company is turning strategic AI and security investments into products customers can buy. IBM just answered a $5 billion cybersecurity question
• Neutral Sentiment: Susquehanna’s new coverage came with a $303 target, implying only modest upside from current levels and reinforcing a wait-and-see stance heading into IBM’s Q2 earnings on July 22. International Business Machines is now covered by Susquehanna
• Negative Sentiment: Sentiment has also been hurt by reports that Starbucks is building internal AI tools to replace vendor software from IBM, raising concerns that enterprise customers may try to reduce software spending over time. Starbucks Builds Sovereign AI to Cut $400 Million in Software Costs

Analyst Upgrades and Downgrades

A number of analysts have weighed in on IBM shares. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of International Business Machines in a research report on Tuesday, June 23rd. Jefferies Financial Group began coverage on International Business Machines in a research note on Tuesday, June 23rd. They issued a “buy” rating on the stock. Piper Sandler raised International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. HSBC upgraded International Business Machines from a “reduce” rating to a “hold” rating and increased their price target for the company from $218.00 to $231.00 in a report on Tuesday, April 28th. Finally, Barclays began coverage on shares of International Business Machines in a research report on Monday, June 1st. They issued an “overweight” rating and a $350.00 price target on the stock. Sixteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $306.28.

International Business Machines Price Performance

The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The stock has a fifty day simple moving average of $262.55 and a 200-day simple moving average of $266.02. The stock has a market cap of $270.55 billion, a price-to-earnings ratio of 25.45, a price-to-earnings-growth ratio of 2.92 and a beta of 0.68.

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 analysts’ consensus estimates 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 return on equity of 37.23% and a net margin of 15.61%.The company’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.60 earnings per share. As a group, equities research analysts expect that International Business Machines Corporation will post 12.45 EPS for the current year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were issued a $1.69 dividend. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 2.3%. International Business Machines’s payout ratio is currently 59.77%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its stake in International Business Machines by 424.6% in the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock valued at $77,234,000 after purchasing an additional 211,040 shares during the last quarter. GLOBALT Investments LLC GA grew its position in International Business Machines by 19.1% during the 4th quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock worth $5,417,000 after acquiring an additional 2,930 shares during the last quarter. Newbridge Financial Services Group Inc. increased its holdings in International Business Machines by 30.0% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after purchasing an additional 3,029 shares in the last quarter. Rice Partnership LLC acquired a new stake in shares of International Business Machines during the fourth quarter valued at about $3,317,000. Finally, Sage Investment Advisers LLC bought a new stake in shares of International Business Machines during the fourth quarter worth about $4,101,000. Institutional investors 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.