International Business Machines (NYSE:IBM) Trading Down 4.3% – Here’s Why

International Business Machines Corporation (NYSE:IBM) was down 4.3% during trading on Wednesday . The company traded as low as $235.41 and last traded at $237.6480. 6,156,432 shares changed hands during trading, a decline of 20% from the average session volume of 7,685,708 shares. The stock had previously closed at $248.37.

Key International Business Machines News

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

• Positive Sentiment: IBM finalized a $1 billion U.S. government award for Anderon, its quantum-focused subsidiary, to develop and expand the country’s first stand-alone, pure-play quantum wafer foundry. The funding should support research, manufacturing capacity and broader access to quantum technology, strengthening IBM’s long-term position in the emerging market. Anderon finalizes $1 billion CHIPS award
• Positive Sentiment: IBM also highlighted a production-scale artificial-intelligence deployment for a Turkish credit bureau capable of handling 23 million transactions daily. Although financial terms were not disclosed, the project provides evidence of real-world demand for IBM’s AI and hybrid-cloud capabilities. IBM AI deal handles 23 million transactions daily
• Neutral Sentiment: Analyst price targets remain above the current trading level, with one report citing a $265.90 target. However, IBM trades below its 200-day moving average, while recent technical coverage points to resistance near $239 and continued volatility after its earlier recovery. Analysts set IBM price target
• Negative Sentiment: Investors appeared to take profits following IBM’s recent advance, limiting the immediate benefit of the quantum announcement. IBM was also cited as a notable drag on the Dow, even as much of the broader technology sector traded higher. Why IBM stock is falling Wednesday

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Stifel Nicolaus decreased their target price on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a research report on Monday, July 20th. Craig Hallum initiated coverage on shares of International Business Machines in a research report on Wednesday, August 19th. They set a “buy” rating for the company. Jefferies Financial Group decreased their price target on shares of International Business Machines from $320.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Wolfe Research cut shares of International Business Machines to a “peer perform” rating in a research note on Tuesday, June 23rd. Finally, Roth Capital restated a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Seventeen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $265.16.

International Business Machines Stock Down 4.3%

The stock has a fifty day moving average price of $234.72 and a 200-day moving average price of $246.74. The firm has a market cap of $223.90 billion, a PE ratio of 21.09, a PEG ratio of 2.37 and a beta of 0.71. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79.

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, meeting the consensus estimate of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. During the same quarter last year, the firm posted $2.80 earnings per share. International Business Machines’s revenue for the quarter was up 1.1% compared to the same quarter last year. Research analysts expect that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a $1.69 dividend. 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 (DPR) is currently 59.98%.

Insider Buying and Selling at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the company’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president directly owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.27% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of International Business Machines in the second quarter valued at $21,586,659,000. State Street Corp increased its stake in International Business Machines by 1.0% during the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock worth $16,290,452,000 after buying an additional 518,321 shares during the period. Geode Capital Management LLC lifted its holdings in International Business Machines by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock worth $6,679,105,000 after buying an additional 336,069 shares in the last quarter. Capital World Investors lifted its holdings in International Business Machines by 29.2% in the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after buying an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE boosted its position in International Business Machines by 7.0% in the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company’s stock valued at $3,893,669,000 after buying an additional 1,049,602 shares during 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 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.