International Business Machines (NYSE:IBM) Share Price Crosses Below Two Hundred Day Moving Average – What’s Next?

International Business Machines Corporation (NYSE:IBM)’s stock price crossed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $248.88 and traded as low as $245.72. International Business Machines shares last traded at $247.3980, with a volume of 5,328,040 shares trading hands.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform to coordinate quantum and high-performance computing for quantum error correction. The effort supports a U.S. Department of Energy goal of advancing toward a scientifically relevant quantum computer by 2028, though commercial benefits are likely longer term. Reuters article
• Positive Sentiment: A report projects the global BFSI digital-transformation market will grow to $220.2 billion by 2030 and identifies IBM among companies competing to provide AI, cloud and automation solutions. This points to a sizable potential market, not guaranteed IBM revenue. Yahoo Finance article
• Neutral Sentiment: IBM CEO Arvind Krishna argued that rationing AI use risks losing ground, while noting that running AI can cost more than training it. The comments underscore the opportunity in inference workloads alongside the cost challenge of serving them. Fortune article
• Negative Sentiment: Recent analysis cites AI-disruption fears, margin pressure and stiff competition as concerns weighing on IBM, despite hybrid-cloud demand and improved earnings estimates. These risks may help explain investor caution. Yahoo Finance article

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on IBM. Bank of America lowered their price target on International Business Machines from $330.00 to $280.00 and set a “buy” rating on the stock in a report on Wednesday, July 15th. Stifel Nicolaus upped their price objective on International Business Machines from $235.00 to $260.00 and gave the company a “buy” rating in a research note on Thursday, October 22nd. Craig Hallum initiated coverage on International Business Machines in a research report on Wednesday, August 19th. They set a “buy” rating for the company. JPMorgan Chase & Co. lifted their target price on International Business Machines from $250.00 to $269.00 and gave the company an “overweight” rating in a research note on Thursday, October 22nd. Finally, Yorkville Ives started coverage on International Business Machines in a research note on Monday, October 5th. They issued an “outperform” rating and a $275.00 target price on the stock. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and a consensus target price of $266.12.

International Business Machines Stock Down 2.7%

The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 1.57. The stock has a market capitalization of $233.82 billion, a PE ratio of 21.09, a PEG ratio of 2.50 and a beta of 0.78. The firm’s fifty day moving average is $236.64 and its 200-day moving average is $248.88.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating analysts’ consensus estimates of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The company had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. During the same quarter in the previous year, the company earned $2.65 EPS. The firm’s revenue for the quarter was up 4.7% compared to the same quarter last year. On average, equities research analysts predict that International Business Machines Corporation will post 12.41 earnings per share for the current year.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines’s dividend payout ratio (DPR) is currently 57.63%.

Insider Buying and Selling at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.27% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently bought and sold shares of IBM. BlackRock Inc. purchased a new stake in International Business Machines during the 2nd quarter worth $21,586,659,000. State Street Corp boosted its stake in International Business Machines by 2.7% during the 2nd quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock valued at $15,760,430,000 after acquiring an additional 1,450,562 shares during the last quarter. Bank of America Corp DE acquired a new position in International Business Machines during the 2nd quarter worth $4,214,868,000. Bank of New York Mellon Corp acquired a new position in International Business Machines during the 2nd quarter worth $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in International Business Machines by 0.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock worth $2,143,245,000 after acquiring an additional 53,388 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.