International Business Machines (NYSE:IBM) Shares Down 1.3% After Insider Selling

International Business Machines Corporation (NYSE:IBM)’s stock price fell 1.3% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $235.09 and last traded at $235.78. 3,904,206 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 7,897,626 shares. The stock had previously closed at $238.79.

Specifically, SVP Robert David Thomas sold 25,000 shares of International Business Machines stock in a transaction dated 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 completion of the sale, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Needham & Company LLC started coverage on shares of International Business Machines in a report on Wednesday, June 3rd. They set a “buy” rating for the company. The Goldman Sachs Group set a $270.00 target price on shares of International Business Machines in a research note on Thursday, July 23rd. Bank of America raised their price target on International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Oppenheimer cut International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Finally, Piper Sandler raised shares of International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $265.40.

More International Business Machines News

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

• Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM?
• Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
• Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth
• Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park
• Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors
• Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns.

International Business Machines Trading Down 1.3%

The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The stock’s 50-day simple moving average is $244.85 and its two-hundred day simple moving average is $248.74. The firm has a market capitalization of $222.14 billion, a P/E ratio of 20.92, a price-to-earnings-growth ratio of 2.26 and a beta of 0.70.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the prior year, the business posted $2.80 EPS. International Business Machines’s revenue for the quarter was up 1.1% compared to the same quarter last year. Equities research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s payout ratio is 59.98%.

Institutional Investors Weigh In On International Business Machines

Hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System increased its position in shares of International Business Machines by 28,068.3% during the 2nd quarter. California State Teachers Retirement System now owns 400,522,341 shares of the technology company’s stock valued at $112,630,888,000 after purchasing an additional 399,100,449 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of International Business Machines in the second quarter valued at $21,586,659,000. State Street Corp raised its stake in shares of International Business Machines by 1.0% in the fourth quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after acquiring an additional 518,321 shares during the period. Geode Capital Management LLC boosted its stake in shares of International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after purchasing an additional 336,069 shares during the period. Finally, Capital World Investors boosted its stake in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after purchasing an additional 4,976,756 shares during the period. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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.