International Business Machines (NYSE:IBM) Stock Price Down 3.6% – Should You Sell?

International Business Machines Corporation (NYSE:IBM) dropped 3.6% during mid-day trading on Thursday . The company traded as low as $297.04 and last traded at $297.88. Approximately 4,905,811 shares traded hands during trading, an increase of 26% from the average daily volume of 3,895,144 shares. The stock had previously closed at $309.03.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Demand tailwinds for integrated systems and multi-cloud adoption cited by Zacks could benefit IBM’s hardware and hybrid-cloud services, supporting revenue outlooks for companies like IBM. 4 Stocks to Watch From a Prospering Technology Solutions Industry
• Positive Sentiment: Bank of America analyst expects IBM shares to rise, a publishable vote of confidence that can spur buying from institutional investors and traders. International Business Machines (NYSE:IBM) Stock Price Expected to Rise, Bank of America Analyst Says
• Positive Sentiment: IBM launched “IBM Sovereign Core,” AI‑ready software for sovereign/compliant environments — a product aimed at governments and regulated enterprises that could drive new large contracts and strengthen IBM’s positioning in regulated AI deployments. IBM Introduces New Software to Address Growing Digital Sovereignty Imperative
• Neutral Sentiment: IBM scheduled its Q4 2025 earnings call for Jan. 28 — a routine catalyst that typically increases volatility as investors adjust positions ahead of results. IBM to Announce Fourth-Quarter 2025 Financial Results
• Neutral Sentiment: Analyst and media coverage shows IBM trending and drawing attention, with short-term share movement (recent weekly gain, monthly slip) reflecting mixed investor sentiment rather than a clear directional shift. International Business Machines Stock Trending Among Analysts
• Neutral Sentiment: Coverage of IBM’s global IT presence reiterates scale and enterprise footprint — supportive background but not an immediate stock-moving item. International Business Machines (NYSE:IBM) s&p 500 today Global IT Presence
• Negative Sentiment: Comparisons with Microsoft (Zacks) highlight Microsoft’s stronger AI momentum and growth outlook, implying competitive pressure on IBM’s valuation and investor preference for higher-growth names. IBM vs. MSFT: Which Cloud & AI Tech Giant is a Better Buy?
• Neutral Sentiment: Additional analyst notes and market write-ups offer mixed views and commentary but no single new catalyst beyond the product launch and upcoming earnings call. Analysts Offer Insights on Technology Companies: International Business Machines (IBM) and Lattice Semiconductor (LSCC)

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. BMO Capital Markets increased their price objective 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. Stifel Nicolaus upped their price target on International Business Machines from $295.00 to $325.00 and gave the stock a “buy” rating in a research note on Tuesday, December 9th. UBS Group reiterated a “sell” rating on shares of International Business Machines in a research report on Tuesday, December 9th. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. Finally, Wall Street Zen downgraded shares of International Business Machines from a “buy” rating to a “hold” rating in a research report on Sunday. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $303.38.

International Business Machines Price Performance

The stock has a market cap of $278.44 billion, a price-to-earnings ratio of 35.63, a PEG ratio of 2.82 and a beta of 0.70. The company’s 50 day moving average is $303.78 and its 200 day moving average is $282.32. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.93 and a quick ratio of 0.89.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, October 22nd. The technology company reported $2.65 earnings per share for the quarter, topping 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 for the quarter, compared to analyst estimates of $16.10 billion. During the same period in the prior year, the business posted $2.30 earnings per share. The firm’s revenue for the quarter was up 9.1% compared to the same quarter last year. Research analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Monday, November 10th were issued 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 currently 80.38%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Brighton Jones LLC increased its stake in shares of International Business Machines by 12.4% during the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after purchasing an additional 2,323 shares in the last quarter. First Hawaiian Bank grew its holdings in International Business Machines by 1.0% during the 2nd quarter. First Hawaiian Bank now owns 4,357 shares of the technology company’s stock valued at $1,284,000 after buying an additional 45 shares during the last quarter. Gradient Investments LLC increased its position in International Business Machines by 29.8% during the second quarter. Gradient Investments LLC now owns 2,492 shares of the technology company’s stock worth $735,000 after buying an additional 572 shares in the last quarter. Trinity Legacy Partners LLC acquired a new position in shares of International Business Machines in the second quarter worth $203,000. Finally, MassMutual Private Wealth & Trust FSB lifted its position in shares of International Business Machines by 2.9% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 9,053 shares of the technology company’s stock valued at $2,669,000 after acquiring an additional 258 shares in the last quarter. Hedge funds and other 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 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.