International Business Machines (NYSE:IBM) Trading Down 1.7% – What’s Next?

Shares of International Business Machines Corporation (NYSE:IBM) traded down 1.7% on Wednesday . The company traded as low as $271.33 and last traded at $272.7760. 5,045,663 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 7,133,325 shares. The stock had previously closed at $277.49.

International Business Machines News Summary

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

• Positive Sentiment: Jim Cramer publicly said he prefers IBM over speculative quantum names, which may have helped support sentiment by positioning IBM as the more established way to play quantum and AI. Jim Cramer Recommends IBM Over Xanadu Quantum
• Positive Sentiment: IBM announced an expanded global collaboration with JA Worldwide to deliver AI and digital-skills training to up to one million high-school students, reinforcing IBM’s brand in education and workforce development. JA Worldwide and IBM Expand Global Collaboration with Goal of Delivering AI and Digital Skills to Up to One Million High-School Students
• Positive Sentiment: Commentary across multiple outlets highlighted IBM CEO Arvind Krishna’s emphasis on quantum computing, AI, and a long-term profit strategy, which supports the narrative that IBM is building optionality in next-generation tech. IBM CEO: AI Won’t Necessarily Lead To Smaller Headcount
• Neutral Sentiment: Analysts and media continued debating IBM’s valuation versus other AI infrastructure names, with one comparison piece arguing peers may offer faster growth and cheaper valuations than IBM. Celestica vs. IBM: Which AI Infrastructure Stock is the Better Buy?
• Neutral Sentiment: Coverage also continued to frame IBM as a long-term AI and quantum winner, but some reports noted the stock may need a pullback before offering a more attractive entry point. IBM Just Placed a $10 Billion Bet to Become the Nvidia of Quantum Computing

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Wedbush set a $350.00 price objective on International Business Machines in a report on Tuesday, June 2nd. HSBC raised International Business Machines from a “reduce” rating to a “hold” rating and increased their price objective for the company from $218.00 to $231.00 in a report on Tuesday, April 28th. Morgan Stanley increased their price objective on International Business Machines from $215.00 to $225.00 and gave the company an “equal weight” rating in a report on Thursday, April 23rd. Weiss Ratings lowered International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, May 21st. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of International Business Machines in a report on Thursday, May 28th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, International Business Machines presently has a consensus rating of “Moderate Buy” and an average price target of $304.17.

International Business Machines Stock Performance

The stock has a market capitalization of $256.38 billion, a price-to-earnings ratio of 24.12, a price-to-earnings-growth ratio of 2.91 and a beta of 0.67. The firm has a fifty day moving average of $248.08 and a 200 day moving average of $270.61. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping the consensus estimate of $1.81 by $0.10. The firm had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.International Business Machines’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period last year, the company earned $1.60 earnings per share. On average, sell-side analysts anticipate that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a yield of 2.5%. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend is Friday, May 8th. International Business Machines’s dividend payout ratio is 59.77%.

Institutional Trading of International Business Machines

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. FAS Wealth Partners Inc. grew its holdings in International Business Machines by 1.1% during the first quarter. FAS Wealth Partners Inc. now owns 7,598 shares of the technology company’s stock worth $1,842,000 after acquiring an additional 86 shares during the period. Pine Valley Investments Ltd Liability Co boosted its position in International Business Machines by 1.1% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 20,341 shares of the technology company’s stock worth $4,930,000 after purchasing an additional 225 shares in the last quarter. Farmers National Bank boosted its position in International Business Machines by 13.9% during the first quarter. Farmers National Bank now owns 28,786 shares of the technology company’s stock worth $6,977,000 after purchasing an additional 3,518 shares in the last quarter. Blue Edge Capital LLC boosted its position in International Business Machines by 22.9% during the first quarter. Blue Edge Capital LLC now owns 8,316 shares of the technology company’s stock worth $2,016,000 after purchasing an additional 1,551 shares in the last quarter. Finally, Caerus Investment Advisors LLC boosted its position in International Business Machines by 35.7% during the first quarter. Caerus Investment Advisors LLC now owns 1,418 shares of the technology company’s stock worth $344,000 after purchasing an additional 373 shares in the last quarter. 58.96% of the stock is 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.