International Business Machines (NYSE:IBM) Shares Down 1% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM)’s stock price traded down 1% on Thursday . The stock traded as low as $228.44 and last traded at $233.5240. Approximately 4,237,961 shares changed hands during trading, a decline of 48% from the average session volume of 8,201,438 shares. The stock had previously closed at $235.92.

International Business Machines News Roundup

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

• Positive Sentiment: IBM previewed Apptio AI Value & ROI, a tool designed to track AI spending—including token costs—and connect it with business outcomes. The offering could help enterprises justify AI investments and strengthen IBM’s position in AI governance and FinOps software. IBM previews Apptio AI Value & ROI to track AI spend and results
• Positive Sentiment: IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools in regulated environments. The approval may expand IBM’s government-cloud opportunity and provide a credibility boost for its software business. IBM Secures FedRAMP Moderate Authorization For Maximo
• Neutral Sentiment: Recent commentary describes IBM as a high-risk, mixed setup: software growth is strong, but declining mainframe sales and the aftermath of the earnings-related selloff could limit the rebound. Investors are weighing whether the recovery reflects value or unresolved operational risk. IBM’s Post-Collapse Rebound: A Complex Risk Reward Profile
• Negative Sentiment: Hagens Berman, Bleichmar Fonti & Auld, and Pomerantz announced investigations related to IBM’s reported financial disclosures and the severe post-earnings decline. These announcements do not establish wrongdoing, but they add legal uncertainty, reputational risk and potential shareholder-claim exposure. IBM Securities Fraud Investigation is Ongoing Pomerantz IBM investor investigation
• Negative Sentiment: Kyndryl reported ongoing IBM-related revenue declines, underscoring potential headwinds in legacy infrastructure and services. That weakness contrasts with IBM’s software momentum and may reinforce concerns about the company’s transition away from older businesses. Kyndryl earnings call highlights

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on IBM shares. Oppenheimer downgraded International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 15th. Roth Capital reaffirmed a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Wall Street Zen lowered International Business Machines from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. Piper Sandler upgraded International Business Machines to an “overweight” rating in a report on Tuesday, June 23rd. Finally, Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Price Performance

The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The stock has a market cap of $223.36 billion, a PE ratio of 21.04, a P/E/G ratio of 2.29 and a beta of 0.70. The company’s 50 day moving average is $258.59 and its 200-day moving average is $255.29.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. During the same period in the prior year, the company posted $2.80 EPS. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. As a group, sell-side analysts predict that International Business Machines Corporation will post 12.34 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, September 10th. Investors of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines’s dividend payout ratio is currently 59.98%.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently bought and sold shares of IBM. Family CFO Inc bought a new position in International Business Machines during the 4th quarter valued at $25,000. Basepoint Wealth LLC bought a new stake in shares of International Business Machines in the 4th quarter worth about $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines in the 1st quarter valued at about $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines during the second quarter worth about $27,000. Finally, Joseph Group Capital Management bought a new position in shares of International Business Machines during the fourth quarter worth about $28,000. 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.