International Business Machines (NYSE:IBM) Trading Down 2.7% – Here’s What Happened

Shares of International Business Machines Corporation (NYSE:IBM) traded down 2.7% during trading on Wednesday . The stock traded as low as $211.03 and last traded at $211.2530. Approximately 29,307,618 shares were traded during trading, an increase of 271% from the average daily volume of 7,899,099 shares. The stock had previously closed at $217.07.

Trending Headlines about International Business Machines

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

• Negative Sentiment: IBM’s preliminary Q2 results missed Wall Street estimates, with revenue of $17.2 billion and adjusted EPS of $2.93 both below expectations, raising concerns about execution and demand. Reuters: IBM expects second-quarter revenue below estimates
• Negative Sentiment: Management said large enterprise deals closed later than expected as customers redirected budgets toward AI-related infrastructure and cybersecurity needs, suggesting IBM’s traditional software and consulting mix is facing spending pressure. CNBC: IBM warns second-quarter earnings fell short of expectations
• Negative Sentiment: Several law firms and investor-watchdog headlines announced investigations into possible securities claims, which can keep sentiment weak and add headline risk for the stock. PR Newswire: IBM shareholder investigation
• Neutral Sentiment: Some analysts still point to IBM’s long-term valuation support and high consensus price targets, but that has not offset the near-term hit from the earnings warning. 247WallSt: IBM just crashed. If Wall Street pros are right the stock could soar from here

Wall Street Analyst Weigh In

Several analysts have issued reports on IBM shares. HSBC lowered shares of International Business Machines from a “hold” rating to a “reduce” rating and cut their price target for the company from $231.00 to $191.00 in a research report on Tuesday. Needham & Company LLC initiated coverage on International Business Machines in a research note on Wednesday, June 3rd. They issued a “buy” rating for the company. Bank of America increased their target price on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a report on Monday, July 6th. BMO Capital Markets lowered their price objective on International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a research report on Thursday, April 23rd. Finally, Barclays assumed coverage on shares of International Business Machines in a report on Monday, June 1st. They issued an “overweight” rating and a $350.00 target price on the stock. Fourteen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $307.17.

International Business Machines Price Performance

The company has a market cap of $198.55 billion, a PE ratio of 18.68, a PEG ratio of 2.80 and a beta of 0.68. The firm’s 50-day moving average is $264.70 and its 200-day moving average is $265.20. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts’ consensus estimates 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 company had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. During the same quarter last year, the business posted $1.60 EPS. The firm’s revenue for the quarter was up 9.5% compared to the same quarter last year. On average, equities analysts anticipate that International Business Machines Corporation will post 12.45 EPS for the current year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a dividend of $1.69 per share. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s payout ratio is 59.77%.

Institutional Trading of International Business Machines

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Foster Group Inc. boosted its holdings in International Business Machines by 1.3% in the fourth quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock valued at $742,000 after purchasing an additional 33 shares during the period. CVA Family Office LLC increased its holdings in International Business Machines by 1.4% during the 4th quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock worth $708,000 after purchasing an additional 33 shares during the period. New Covenant Trust Company N.A. raised its position in International Business Machines by 3.8% in the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock valued at $264,000 after purchasing an additional 33 shares in the last quarter. McGowan Group Asset Management Inc. raised its position in International Business Machines by 1.2% in the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock valued at $798,000 after purchasing an additional 33 shares in the last quarter. Finally, Sandbox Financial Partners LLC boosted its stake in shares of International Business Machines by 0.4% in the 4th quarter. Sandbox Financial Partners LLC now owns 8,969 shares of the technology company’s stock valued at $2,657,000 after buying an additional 34 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

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.