International Business Machines (NYSE:IBM) Stock Price Down 4.8% – Should You Sell?

International Business Machines Corporation (NYSE:IBM) shares fell 4.8% during mid-day trading on Thursday . The company traded as low as $257.22 and last traded at $259.74. 12,536,966 shares changed hands during mid-day trading, an increase of 133% from the average session volume of 5,373,332 shares. The stock had previously closed at $272.81.

International Business Machines News Roundup

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

• Positive Sentiment: IBM says it will triple U.S. entry-level hiring in 2026, recasting junior roles for the AI era — a sign management is investing in talent to scale AI initiatives and support growth despite automation risk. IBM tripling Gen Z hiring
• Positive Sentiment: Confluent shareholders approved the merger agreement with an IBM subsidiary, clearing a regulatory/transactional hurdle that supports IBM’s data-streaming and hybrid cloud strategy if the deal closes. Confluent shareholders approve IBM acquisition
• Positive Sentiment: Product/technology updates — IBM highlighted AI-related enhancements to FlashSystem storage and QRadar security, reinforcing its enterprise storage/security positioning that supports recurring revenue and cross-sell into large customers. IBM AI FlashSystem And QRadar Updates
• Neutral Sentiment: IBM has been a trending stock on retail news sites and equity screens — heightened attention can amplify moves in either direction but doesn’t imply fundamental change on its own. Zacks trending stock note
• Neutral Sentiment: Small institutional portfolio moves: Advisors Asset Management disclosed a modest trimming of IBM (~-20.9k shares in the 12/31/25 13F update) — routine reweights can add volume but aren’t necessarily a directional signal. Quiver Quant fund update
• Negative Sentiment: Unusual options activity: traders bought a large block of put options (56,108 contracts, ~+42% vs. average), signaling elevated hedging or directional bearish bets that can amplify downside moves. (No article link available)
• Negative Sentiment: Short-seller criticism: veteran short seller Jim Chanos publicly called IBM “an AI risk, not an AI leader,” arguing market expectations for IBM’s AI leadership may be overstated — this negative publicity could pressure sentiment and invite further sell-side scrutiny. Chanos calls IBM an AI risk

Analyst Upgrades and Downgrades

A number of research firms have commented on IBM. Erste Group Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating in a research note on Friday, December 5th. JPMorgan Chase & Co. lifted their price target on International Business Machines from $312.00 to $317.00 and gave the stock a “neutral” rating in a research note on Thursday, January 29th. Bank of America upped their price objective on International Business Machines from $315.00 to $335.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. Wedbush lifted their target price on International Business Machines from $325.00 to $340.00 and gave the stock an “outperform” rating in a research report on Thursday, January 29th. Finally, Royal Bank Of Canada set a $361.00 price target on International Business Machines in a research report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and a consensus price target of $330.07.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.92 and a current ratio of 0.96. The stock has a 50 day moving average of $299.24 and a 200 day moving average of $283.88. The stock has a market capitalization of $245.21 billion, a P/E ratio of 23.53, a P/E/G ratio of 2.60 and a beta of 0.69.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.33 by $0.19. The business had revenue of $19.69 billion during the quarter, compared to the consensus estimate of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business’s revenue was up 12.2% on a year-over-year basis. During the same period in the previous year, the firm posted $3.92 earnings per share. Equities analysts predict that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be issued a $1.68 dividend. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $6.72 annualized dividend and a yield of 2.6%. International Business Machines’s dividend payout ratio is presently 60.27%.

Insider Buying and Selling

In related news, Director David N. Farr acquired 1,000 shares of the firm’s stock in a transaction dated Friday, January 30th. The stock was acquired at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the acquisition, the director directly owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. The trade was a 12.11% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.18% of the company’s stock.

Institutional Trading of International Business Machines

Several institutional investors have recently modified their holdings of IBM. Vanguard Group Inc. boosted its holdings in International Business Machines by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company’s stock worth $28,796,390,000 after buying an additional 1,439,824 shares in the last quarter. State Street Corp lifted its position in shares of International Business Machines by 1.0% during the 4th 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 last quarter. Geode Capital Management LLC grew its holdings in shares of International Business Machines by 1.5% in 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 acquiring an additional 336,069 shares during the last quarter. Capital World Investors raised its position in shares of International Business Machines by 29.2% during the fourth 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. Finally, Norges Bank acquired a new stake in shares of International Business Machines during the fourth quarter worth $2,446,429,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.