International Business Machines (NYSE:IBM) Hits New 1-Year Low – Here’s Why

Shares of International Business Machines Corporation (NYSE:IBM) reached a new 52-week low on Wednesday . The stock traded as low as $211.60 and last traded at $213.1390, with a volume of 18186538 shares. The stock had previously closed at $217.07.

International Business Machines News Summary

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

• Positive Sentiment: IBM announced new Power Systems and software offerings aimed at improving enterprise risk management, productivity and flexibility, which could support longer-term product demand. IBM Launches New Power Systems and Software Built for Enterprises to Address Risk, Productivity, and Flexibility
• Positive Sentiment: Some analysts remain constructive, with high price targets implying meaningful upside from current levels despite the selloff. International Business Machines’ (IBM) “Outperform” Rating Reaffirmed at Oppenheimer
• Neutral Sentiment: IBM’s leadership says its software business is not being disrupted by AI, but investors are still waiting for proof that demand can recover. IBM Vice Chairman Gary Cohn: Our software is not being disrupted by AI
• Negative Sentiment: IBM’s preliminary Q2 results missed expectations, with management citing delayed large deals and customers prioritizing AI-related infrastructure spending over software and consulting. IBM expects second-quarter revenue below estimates
• Negative Sentiment: The company’s warning triggered a historic share-price collapse and wiped out tens of billions in market value, reinforcing fears about near-term growth and execution. IBM Loses $69 Billion of Market Value in One Day in Latest AI-Fueled Selloff

Analyst Ratings Changes

IBM has been the subject of several recent analyst reports. Barclays started coverage on International Business Machines in a report on Monday, June 1st. They issued an “overweight” rating and a $350.00 price target for the company. Citigroup lifted their price objective on International Business Machines from $285.00 to $375.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. KeyCorp cut International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. BMO Capital Markets dropped their target price on shares of International Business Machines from $290.00 to $270.00 and set a “market perform” rating on the stock in a report on Thursday, April 23rd. Finally, DZ Bank raised shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target on the stock in a research note on Friday, April 24th. Fourteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $307.17.

International Business Machines Stock Performance

The firm has a market cap of $200.01 billion, a price-to-earnings ratio of 18.84, a price-to-earnings-growth ratio of 2.80 and a beta of 0.68. The stock has a 50-day moving average of $264.70 and a 200-day moving average of $265.20. 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 released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share 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 the consensus estimate of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business’s revenue was up 9.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.60 EPS. As a group, analysts anticipate that International Business Machines Corporation will post 12.45 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were given a $1.69 dividend. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s payout ratio is presently 59.77%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Basepoint Wealth LLC acquired a new position in shares of International Business Machines during the 4th quarter worth about $25,000. Family CFO Inc acquired a new position in International Business Machines during the fourth quarter valued at approximately $25,000. Joseph Group Capital Management bought a new position in International Business Machines in the fourth quarter valued at approximately $28,000. Cornerstone Financial Management LLC acquired a new position in shares of International Business Machines during the 4th quarter worth approximately $28,000. Finally, SWAN Capital LLC acquired a new position in shares of International Business Machines during the 3rd quarter worth approximately $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.