International Business Machines (NYSE:IBM) Share Price Crosses Below 200-Day Moving Average – Should You Sell?

International Business Machines Corporation (NYSE:IBM)’s stock price crossed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $248.88 and traded as low as $245.72. International Business Machines shares last traded at $247.3980, with a volume of 5,328,040 shares traded.

International Business Machines News Summary

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

• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory launched a platform to coordinate quantum and high-performance computing for quantum error correction. The effort supports a U.S. Department of Energy goal of advancing toward a scientifically relevant quantum computer by 2028, though commercial benefits are likely longer term. Reuters article
• Positive Sentiment: A report projects the global BFSI digital-transformation market will grow to $220.2 billion by 2030 and identifies IBM among companies competing to provide AI, cloud and automation solutions. This points to a sizable potential market, not guaranteed IBM revenue. Yahoo Finance article
• Neutral Sentiment: IBM CEO Arvind Krishna argued that rationing AI use risks losing ground, while noting that running AI can cost more than training it. The comments underscore the opportunity in inference workloads alongside the cost challenge of serving them. Fortune article
• Negative Sentiment: Recent analysis cites AI-disruption fears, margin pressure and stiff competition as concerns weighing on IBM, despite hybrid-cloud demand and improved earnings estimates. These risks may help explain investor caution. Yahoo Finance article

Wall Street Analyst Weigh In

Several analysts have issued reports on IBM shares. Sanford C. Bernstein cut their price objective on International Business Machines from $280.00 to $230.00 and set a “market perform” rating on the stock in a research note on Thursday, July 23rd. BMO Capital Markets lifted their target price on International Business Machines from $230.00 to $265.00 and gave the stock a “market perform” rating in a research report on Thursday, October 22nd. Weiss Ratings lowered International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, October 29th. Citic Securities boosted their price target on International Business Machines from $294.00 to $297.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. Finally, Susquehanna upped their price target on International Business Machines from $235.00 to $256.00 and gave the company a “neutral” rating in a research report on Wednesday, October 21st. Nineteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, International Business Machines presently has an average rating of “Moderate Buy” and an average price target of $266.12.

International Business Machines Stock Performance

The stock has a market capitalization of $233.82 billion, a P/E ratio of 21.09, a P/E/G ratio of 2.50 and a beta of 0.78. The stock has a 50 day moving average of $236.64 and a 200 day moving average of $248.88. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.80 and a current ratio of 0.85.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.10. The firm had revenue of $17.10 billion for the quarter, compared to analyst estimates of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same period last year, the company earned $2.65 earnings per share. Equities analysts predict that International Business Machines Corporation will post 12.41 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be given a dividend of $1.69 per share. The ex-dividend date is Tuesday, November 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. International Business Machines’s dividend payout ratio is currently 57.63%.

Insider Buying and Selling at International Business Machines

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Assetmark Inc. lifted its holdings in International Business Machines by 24.8% in the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock worth $15,624,000 after purchasing an additional 12,791 shares during the period. Flputnam Investment Management Co. bought a new position in International Business Machines in the 2nd quarter valued at about $15,237,000. Beacon Investment Advisory Services Inc. grew its position in International Business Machines by 939.4% in the 2nd quarter. Beacon Investment Advisory Services Inc. now owns 30,495 shares of the technology company’s stock valued at $8,575,000 after buying an additional 27,561 shares in the last quarter. St. Louis Financial Planners Asset Management LLC increased its stake in International Business Machines by 34.6% during the 2nd quarter. St. Louis Financial Planners Asset Management LLC now owns 14,234 shares of the technology company’s stock valued at $4,121,000 after buying an additional 3,659 shares during the period. Finally, Evercore Wealth Management LLC increased its stake in International Business Machines by 9.0% during the 1st quarter. Evercore Wealth Management LLC now owns 62,801 shares of the technology company’s stock valued at $15,222,000 after buying an additional 5,196 shares during the period. Institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.