International Business Machines (NYSE:IBM) Shares Down 1.7% Following Analyst Downgrade

International Business Machines Corporation (NYSE:IBM)’s share price fell 1.7% on Friday after BMO Capital Markets lowered their price target on the stock from $350.00 to $290.00. BMO Capital Markets currently has a market perform rating on the stock. International Business Machines traded as low as $241.77 and last traded at $246.1160. 11,271,267 shares changed hands during mid-day trading, an increase of 85% from the average session volume of 6,078,928 shares. The stock had previously closed at $250.37.

Several other analysts also recently weighed in on the stock. Bank of America lifted their target price on shares of International Business Machines from $315.00 to $335.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. Wedbush reaffirmed an “outperform” rating and issued a $340.00 price objective on shares of International Business Machines in a research note on Tuesday, February 24th. Morgan Stanley cut their price objective on International Business Machines from $304.00 to $247.00 and set an “equal weight” rating on the stock in a report on Wednesday, February 25th. Argus set a $360.00 target price on International Business Machines in a report on Friday, January 30th. Finally, Wall Street Zen lowered shares of International Business Machines from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, International Business Machines currently has an average rating of “Moderate Buy” and a consensus price target of $314.60.

Insider Buying and Selling at International Business Machines

In related news, Director David N. Farr bought 1,000 shares of the stock in a transaction that occurred on Friday, January 30th. The stock was purchased at an average cost of $304.00 per share, with a total value of $304,000.00. Following the purchase, the director directly owned 9,258 shares of the company’s stock, valued at $2,814,432. This trade represents a 12.11% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Michael Miebach purchased 434 shares of the business’s stock in a transaction on Wednesday, February 25th. The shares were bought at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the acquisition, the director owned 434 shares in the company, valued at $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 1,484 shares of company stock valued at $417,157 over the last three months. 0.27% of the stock is currently owned by insiders.

International Business Machines News Summary

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

• Positive Sentiment: Confluent acquisition strengthens IBM’s AI/hybrid-cloud story by adding real-time data streaming to feed models and automation — a tangible strategic asset for enterprise AI adoption. Read More.
• Positive Sentiment: High-profile bullish commentary (e.g., Jim Cramer) is supporting sentiment that IBM’s fundamentals and AI-related positioning remain compelling for some investors. Read More.
• Neutral Sentiment: Investor attention is elevated — IBM is a trending stock on Zacks, which can increase volatility as short-term flows respond to headlines rather than fundamentals. Read More.
• Neutral Sentiment: Market-momentum commentary and S&P 500 inclusion pieces note IBM’s mixed short-term returns versus stronger multi-year performance — helpful context for longer-term investors but less likely to move price alone. Read More.
• Negative Sentiment: JPMorgan cut its price target after the Confluent deal (to $283 from $317) and flagged balanced risk/reward, which signals reduced conviction among institutional analysts. Read More.
• Negative Sentiment: Additional analyst downgrades and bearish forecasts (coverage noting pessimistic outlooks for IBM’s stock price) are increasing selling pressure and pressuring valuation multiple expectations. Read More. • Read More.
• Negative Sentiment: BMO trimmed its price target (from $350 to $290) and set a market-perform rating, adding to the chorus of lower targets that can cap upside and encourage profit-taking. Read More.
• Negative Sentiment: Unusually large put-option activity (big increase in put volume) suggests some traders are positioning for further downside or hedging, which can amplify downward moves in the underlying stock. (Options volume report)
• Negative Sentiment: Broad macro caution — commentary warning higher gas prices could trigger recessionary risks — adds to investor risk-off sentiment that can pressure cyclically exposed tech/IT budgets. Read More.

Institutional Trading of International Business Machines

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Family CFO Inc acquired a new stake in shares of International Business Machines during the 4th quarter worth about $25,000. Basepoint Wealth LLC purchased a new position in International Business Machines in the fourth quarter valued at approximately $25,000. Winnow Wealth LLC purchased a new position in International Business Machines in the second quarter valued at approximately $27,000. Mountain Hill Investment Partners Corp. acquired a new stake in International Business Machines during the third quarter worth approximately $28,000. Finally, Joseph Group Capital Management purchased a new stake in shares of International Business Machines during the 4th quarter worth approximately $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Stock Performance

The firm’s fifty day moving average price is $273.02 and its 200-day moving average price is $284.48. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 1.67. The firm has a market cap of $230.86 billion, a price-to-earnings ratio of 22.07, a PEG ratio of 2.52 and a beta of 0.73.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 EPS for the quarter, topping the consensus estimate of $4.33 by $0.19. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The firm had revenue of $19.69 billion for the quarter, compared to analyst estimates of $19.23 billion. During the same period last year, the business earned $3.92 EPS. International Business Machines’s revenue for the quarter was up 12.2% compared to the same quarter last year. Analysts expect that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $6.72 annualized dividend and a yield of 2.7%. International Business Machines’s payout ratio is 60.27%.

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.