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

International Business Machines Corporation (NYSE:IBM) dropped 1.2% during mid-day trading on Thursday . The stock traded as low as $300.18 and last traded at $301.9320. Approximately 9,449,239 shares traded hands during trading, an increase of 33% from the average daily volume of 7,086,249 shares. The stock had previously closed at $305.63.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM announced a strategic partnership with Google Cloud to help enterprises scale AI faster, combining IBM Consulting, industry-specific agents, and Google’s Gemini Enterprise platform; the deal was described as a multi-billion-dollar opportunity and supports IBM’s push deeper into software and AI. Article Title
• Positive Sentiment: Analyst commentary from Barclays and Citi added to the momentum, with Barclays initiating coverage at an overweight rating and a $350 price target, while Citi highlighted IBM’s strengthening position in the emerging quantum computing market. Article Title
• Positive Sentiment: IBM’s expanding quantum-computing investment is also fueling optimism, with coverage pointing to its $10 billion-plus commitment and the possibility that IBM becomes one of the biggest long-term winners in the sector. Article Title
• Positive Sentiment: IBM continued building its AI narrative with new partnerships, including a three.ws collaboration on AI-powered 3D workspaces and enterprise AI, reinforcing the company’s positioning in hybrid cloud and regulated-industry use cases. Article Title
• Neutral Sentiment: IBM also launched an AI Builders Challenge and expanded IBM Bob access to 20,000 post-secondary institutions, which supports talent development and longer-term adoption but is less immediately material to revenue. Article Title
• Negative Sentiment: Some traders are also cautious after a sharp recent run-up, with articles warning IBM may be looking extended and vulnerable to an overvaluation pullback despite the positive catalyst flow. Article Title

Analysts Set New Price Targets

Several analysts have weighed in on IBM shares. Barclays assumed coverage on International Business Machines in a research note on Monday. They set an “overweight” rating and a $350.00 target price on the stock. Morgan Stanley increased their price target on International Business Machines from $215.00 to $225.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 23rd. Jefferies Financial Group cut their price objective on shares of International Business Machines from $370.00 to $320.00 and set a “buy” rating on the stock in a research note on Monday, April 20th. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of International Business Machines in a report on Thursday, May 28th. Finally, Citigroup increased their target price on shares of International Business Machines from $285.00 to $375.00 and gave the company a “buy” rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and an average price target of $304.17.

International Business Machines Trading Down 1.2%

The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The firm has a 50-day moving average price of $244.38 and a 200-day moving average price of $270.87. The company has a market capitalization of $283.78 billion, a price-to-earnings ratio of 26.70, a PEG ratio of 3.41 and a beta of 0.67.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. During the same quarter in the prior year, the firm posted $1.60 earnings per share. The company’s revenue was up 9.5% on a year-over-year basis. As a group, sell-side analysts predict that International Business Machines Corporation will post 12.4 EPS for the current year.

International Business Machines Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Friday, May 8th. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio is currently 59.77%.

Hedge Funds Weigh In On International Business Machines

Hedge funds have recently made changes to their positions in the business. Brighton Jones LLC raised its position in shares of International Business Machines by 12.4% during the fourth 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 during the period. Sivia Capital Partners LLC boosted its position in shares of 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 purchasing an additional 186 shares during the period. Jump Financial LLC acquired a new position in shares of International Business Machines in the 2nd quarter valued at $211,000. Ieq Capital LLC increased its stake in International Business Machines by 2.2% in the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after purchasing an additional 843 shares in the last quarter. Finally, Vivaldi Capital Management LP raised its holdings in International Business Machines by 11.6% during the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after buying an additional 106 shares during the period. 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.