International Business Machines (NYSE:IBM) Trading Down 1.2% – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s stock price fell 1.2% on Tuesday . The company traded as low as $302.00 and last traded at $302.0620. 1,872,233 shares traded hands during trading, a decline of 61% from the average session volume of 4,762,591 shares. The stock had previously closed at $305.74.

International Business Machines News Roundup

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

• Positive Sentiment: IBM is repeatedly cited as a leading legacy tech play in quantum computing with a clear roadmap and the resources to pursue commercial breakthroughs over the next decade — a long-term growth narrative that supports upside potential. What Is One of the Best Quantum Computing Stocks to Own for the Next 10 Years?
• Positive Sentiment: IBM is positioning itself as a strategic AI/quantum vendor rather than competing only on model scale — management’s view that 2026 progress will emphasize smarter models supports recurring-revenue, enterprise AI spend thesis. What Will AI Progress Look Like in 2026? IBM Gives Its Prediction
• Neutral Sentiment: Industry pieces highlight IBM as a lower-risk way to gain quantum exposure versus pure-play quantum names (D‑Wave, IonQ) because IBM’s broader business provides cash flow to fund R&D — good for strategic allocation but may limit explosive upside tied purely to quantum breakthroughs. D-Wave vs. IonQ vs. IBM vs. Google: Which Quantum Bets Will Win 2026?
• Neutral Sentiment: Zacks made very small EPS estimate adjustments (minor raises for FY2026/27 and tiny trims for select quarters) — not a material reset, but investors monitor any trend of downward revisions. (Zacks research notes)
• Negative Sentiment: Wall Street reactions are mixed following IBM’s acquisition moves (e.g., Confluent) and strategy shifts; recent analyst coverage shows several buy/outperform ratings but also meaningful sell/low-target calls — mixed signals can pressure the stock as investors wait for integration proof points. Wall Street Has a Mixed Opinion in International Business Machines (IBM), Here’s Why
• Negative Sentiment: Analyst price-target dispersion is wide (examples from Stifel/Oppenheimer vs. UBS/Morgan Stanley), creating headline risk and potential for short-term selling when lower targets circulate; Quiver Quant summarized the mixed ratings and targets. VOO is down 0.4% today, on IBM stock price movement
• Negative Sentiment: Near-term price pressure has shown up in recent trading days (coverage noted IBM fell more than the broader market), suggesting profit-taking or rotation away from cyclical/tech exposure after strong YTD gains. IBM (IBM) Falls More Steeply Than Broader Market: What Investors Need to Know

Analyst Ratings Changes

Several research analysts recently weighed in on IBM shares. BMO Capital Markets increased their target price on International Business Machines from $300.00 to $305.00 and gave the stock a “market perform” rating in a research report on Thursday, October 23rd. Oppenheimer began coverage on International Business Machines in a research note on Friday, November 21st. They set an “outperform” rating and a $360.00 price target for the company. Bank of America lifted their price objective on International Business Machines from $310.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. Weiss Ratings raised shares of International Business Machines from a “hold (c+)” rating to a “buy (b)” rating in a research report on Saturday, October 25th. Finally, Stifel Nicolaus lifted their price target on shares of International Business Machines from $295.00 to $325.00 and gave the company a “buy” rating in a research report on Tuesday, December 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $293.38.

International Business Machines Trading Down 2.0%

The firm has a fifty day moving average of $304.63 and a 200 day moving average of $281.31. The firm has a market capitalization of $276.75 billion, a PE ratio of 35.42, a P/E/G ratio of 3.01 and a beta of 0.69. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.89 and a current ratio of 0.93.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.45 by $0.20. International Business Machines had a net margin of 12.09% and a return on equity of 37.76%. The company had revenue of $16.33 billion during the quarter, compared to the consensus estimate of $16.10 billion. During the same quarter last year, the company earned $2.30 earnings per share. International Business Machines’s revenue for the quarter was up 9.1% on a year-over-year basis. Equities research analysts expect that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Monday, November 10th were paid a dividend of $1.68 per share. The ex-dividend date of this dividend was Monday, November 10th. This represents a $6.72 annualized dividend and a yield of 2.3%. International Business Machines’s payout ratio is 80.38%.

Institutional Trading of International Business Machines

Several large investors have recently modified their holdings of IBM. Norges Bank purchased a new position in International Business Machines in the second quarter valued at about $2,011,122,000. Capital World Investors raised its position in shares of International Business Machines by 13.9% in the 3rd quarter. Capital World Investors now owns 17,045,156 shares of the technology company’s stock valued at $4,809,461,000 after purchasing an additional 2,077,506 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of International Business Machines by 2.1% during the 2nd quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company’s stock valued at $28,019,274,000 after buying an additional 1,913,708 shares during the last quarter. Laurel Wealth Advisors LLC grew its position in shares of International Business Machines by 27,928.2% during the second quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company’s stock worth $561,001,000 after buying an additional 1,896,326 shares in the last quarter. Finally, First Trust Advisors LP grew its position in shares of International Business Machines by 39.6% during the third quarter. First Trust Advisors LP now owns 3,052,880 shares of the technology company’s stock worth $861,401,000 after buying an additional 865,253 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

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.