International Business Machines (NYSE:IBM) Stock Price Down 2.7% – Time to Sell?

Shares of International Business Machines Corporation (NYSE:IBM) traded down 2.7% during mid-day trading on Wednesday . The stock traded as low as $211.03 and last traded at $211.2530. 29,307,618 shares changed hands during trading, an increase of 271% from the average session volume of 7,899,099 shares. The stock had previously closed at $217.07.

International Business Machines News Roundup

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

• Negative Sentiment: IBM’s weak Q2 pre-announcement missed Wall Street estimates and pointed to softer software and enterprise demand as customers redirected spending toward AI infrastructure. IBM Just Pre-Announced an Earnings Miss. The Reason Reveals Where AI Money Is Really Flowing.
• Negative Sentiment: Analysts have begun cutting estimates and lowering price targets after the warning, signaling that the market expects slower growth near term. IBM Q2 preview miss prompts analysts to cut estimates on softer demand
• Negative Sentiment: Multiple law firms announced securities-fraud investigations following the sharp drop, which can add overhang and keep investors cautious. IBM Legal Notice: IBM is being Investigated for Securities Fraud – Investors Notified to Contact BFA Law if You Suffered Losses
• Negative Sentiment: Media coverage has highlighted IBM’s worst single-day collapse in decades, which can reinforce momentum selling and weaken confidence in the stock. The Boardroom Debate That Led to IBM’s Historic 25% Stock Plunge

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Oppenheimer lowered International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday. Bank of America lifted their price target on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a report on Monday, July 6th. Roth Capital reissued a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Barclays began coverage on International Business Machines in a research note on Monday, June 1st. They set an “overweight” rating and a $350.00 price objective for the company. Finally, Jefferies Financial Group initiated coverage on International Business Machines in a research report on Tuesday, June 23rd. They set a “buy” rating on the stock. Fifteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $301.83.

International Business Machines Stock Performance

The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The company has a market capitalization of $206.21 billion, a PE ratio of 19.40, a PEG ratio of 2.06 and a beta of 0.68. The business has a 50 day simple moving average of $264.17 and a 200 day simple moving average of $263.94.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate of $1.81 by $0.10. The firm had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines’s revenue was up 9.5% on a year-over-year basis. During the same period last year, the firm posted $1.60 EPS. Equities research analysts predict that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were issued 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 3.1%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s dividend payout ratio is currently 59.77%.

Institutional Trading of International Business Machines

Large investors have recently made changes to their positions in the business. VIRGINIA RETIREMENT SYSTEMS ET Al raised its position in International Business Machines by 424.6% during the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock worth $77,234,000 after acquiring an additional 211,040 shares during the period. GLOBALT Investments LLC GA grew its holdings in shares of International Business Machines by 19.1% during the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock worth $5,417,000 after buying an additional 2,930 shares in the last quarter. Newbridge Financial Services Group Inc. boosted its position in International Business Machines by 30.0% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after acquiring an additional 3,029 shares during the last quarter. Rice Partnership LLC acquired a new position in shares of International Business Machines during the 4th quarter worth approximately $3,317,000. Finally, Sage Investment Advisers LLC acquired a new position in International Business Machines during the fourth quarter worth $4,101,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

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.