International Business Machines (NYSE:IBM) Trading Down 2.5% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM)’s stock price traded down 2.5% during trading on Thursday . The stock traded as low as $231.83 and last traded at $234.0550. 5,340,230 shares were traded during mid-day trading, a decline of 31% from the average daily volume of 7,731,067 shares. The stock had previously closed at $239.94.

International Business Machines News Roundup

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

• Positive Sentiment: Lunar AI partnership with NASA: IBM and NASA released the open-source Lunar Foundation Model, trained on decades of lunar observation data. The model reportedly outperformed widely used mapping methods by up to 23% in identifying features such as ice deposits, craters and volcanic formations. The announcement strengthens IBM’s profile in scientific AI, although near-term revenue is likely limited. IBM and NASA Release Open-Source AI Model to Support Lunar Exploration
• Positive Sentiment: Swiss quantum-computing hub: IBM and Lockheed Martin are establishing a quantum innovation hub at ETH Zurich through Switzerland’s defense-offset program. The Swiss National Supercomputing Centre is expected to host the country’s first IBM Quantum System Two, powered by IBM’s Nighthawk r2 processor and integrated with the Alps supercomputer. The arrangement could provide IBM with a government-supported, multi-year deployment while expanding access to researchers and businesses. Research will focus on quantum sensing, navigation and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Neutral Sentiment: Analyst coverage continues to frame IBM as a diversified way to gain exposure to enterprise AI, hybrid cloud and quantum computing. However, the announcements are primarily strategic and research-oriented, so their effect on revenue and earnings may take years to materialize.
• Negative Sentiment: IBM recently underperformed the broader market, while a shareholder-rights law firm announced an investigation tied to management’s prior preview of weak second-quarter 2026 results. The investigation is not an allegation of wrongdoing, but it adds headline and legal risk. IBM Shareholder Investigation

Analysts Set New Price Targets

Several equities analysts have recently issued reports on IBM shares. Weiss Ratings lowered International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Morgan Stanley dropped their price target on International Business Machines from $293.00 to $190.00 and set an “equal weight” rating on the stock in a report on Thursday, July 23rd. Wedbush set a $350.00 price objective on International Business Machines in a research report on Tuesday, June 2nd. Piper Sandler upgraded International Business Machines to an “overweight” rating in a research note on Tuesday, June 23rd. Finally, Oppenheimer lowered International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Sixteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus price target of $265.90.

International Business Machines Stock Performance

The company’s 50 day moving average price is $236.88 and its 200-day moving average price is $246.36. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The company has a market cap of $229.07 billion, a PE ratio of 21.57, a price-to-earnings-growth ratio of 2.23 and a beta of 0.71.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting 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 for the quarter, compared to analysts’ expectations of $17.46 billion. During the same quarter in the previous year, the firm posted $2.80 EPS. International Business Machines’s revenue was up 1.1% on a year-over-year basis. Equities research analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were given a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Monday, August 10th. International Business Machines’s dividend payout ratio is currently 59.98%.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC boosted its holdings in International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after buying an additional 2,323 shares during the period. Sivia Capital Partners LLC grew its stake in International Business Machines by 10.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after buying an additional 186 shares in the last quarter. Jump Financial LLC bought a new stake in International Business Machines during the 2nd quarter valued at $211,000. Ieq Capital LLC raised its holdings in International Business Machines by 2.2% during the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock valued at $11,383,000 after acquiring an additional 843 shares during the period. Finally, Vivaldi Capital Management LP lifted its position in shares of International Business Machines by 11.6% during the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after acquiring an additional 106 shares in the last quarter. Institutional investors 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 that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.