International Business Machines (NYSE:IBM) Shares Down 1.7% Following Analyst Downgrade

Shares of International Business Machines Corporation (NYSE:IBM) dropped 1.7% on Friday after BMO Capital Markets lowered their price target on the stock from $350.00 to $290.00. BMO Capital Markets currently has a market perform rating on the stock. International Business Machines traded as low as $241.77 and last traded at $246.1160. Approximately 11,271,267 shares traded hands during mid-day trading, an increase of 85% from the average daily volume of 6,078,928 shares. The stock had previously closed at $250.37.

Other analysts have also recently issued research reports about the stock. Sanford C. Bernstein reiterated a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. JPMorgan Chase & Co. reduced their price objective on International Business Machines from $317.00 to $283.00 and set a “neutral” rating for the company in a research note on Wednesday. Weiss Ratings reiterated a “buy (b)” rating on shares of International Business Machines in a research note on Thursday, January 22nd. Royal Bank Of Canada set a $361.00 target price on International Business Machines in a report on Thursday, January 29th. Finally, UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price target for the company in a research note on Wednesday, February 25th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $314.60.

Insider Buying and Selling

In other news, Director Michael Miebach purchased 434 shares of the stock in a transaction that occurred on Wednesday, February 25th. The shares were acquired at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the acquisition, the director directly owned 434 shares in the company, valued at approximately $101,265.22. The trade was a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David N. Farr purchased 1,000 shares of the company’s stock in a transaction dated Friday, January 30th. The stock was purchased at an average price of $304.00 per share, with a total value of $304,000.00. Following the transaction, the director owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. This represents a 12.11% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have bought 1,484 shares of company stock valued at $417,157. Insiders own 0.27% of the company’s stock.

International Business Machines News Summary

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

• Positive Sentiment: Confluent acquisition strengthens IBM’s AI/hybrid-cloud story by adding real-time data streaming to feed models and automation — a tangible strategic asset for enterprise AI adoption. Read More.
• Positive Sentiment: High-profile bullish commentary (e.g., Jim Cramer) is supporting sentiment that IBM’s fundamentals and AI-related positioning remain compelling for some investors. Read More.
• Neutral Sentiment: Investor attention is elevated — IBM is a trending stock on Zacks, which can increase volatility as short-term flows respond to headlines rather than fundamentals. Read More.
• Neutral Sentiment: Market-momentum commentary and S&P 500 inclusion pieces note IBM’s mixed short-term returns versus stronger multi-year performance — helpful context for longer-term investors but less likely to move price alone. Read More.
• Negative Sentiment: JPMorgan cut its price target after the Confluent deal (to $283 from $317) and flagged balanced risk/reward, which signals reduced conviction among institutional analysts. Read More.
• Negative Sentiment: Additional analyst downgrades and bearish forecasts (coverage noting pessimistic outlooks for IBM’s stock price) are increasing selling pressure and pressuring valuation multiple expectations. Read More. • Read More.
• Negative Sentiment: BMO trimmed its price target (from $350 to $290) and set a market-perform rating, adding to the chorus of lower targets that can cap upside and encourage profit-taking. Read More.
• Negative Sentiment: Unusually large put-option activity (big increase in put volume) suggests some traders are positioning for further downside or hedging, which can amplify downward moves in the underlying stock. (Options volume report)
• Negative Sentiment: Broad macro caution — commentary warning higher gas prices could trigger recessionary risks — adds to investor risk-off sentiment that can pressure cyclically exposed tech/IT budgets. Read More.

Institutional Trading of International Business Machines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Family CFO Inc purchased a new position in shares of International Business Machines during the fourth quarter valued at approximately $25,000. Basepoint Wealth LLC purchased a new stake in International Business Machines in the 4th quarter worth approximately $25,000. Winnow Wealth LLC acquired a new position in International Business Machines in the 2nd quarter valued at $27,000. Mountain Hill Investment Partners Corp. purchased a new position in shares of International Business Machines during the 3rd quarter worth $28,000. Finally, Joseph Group Capital Management purchased a new position in shares of International Business Machines during the 4th quarter worth $28,000. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Stock Down 1.7%

The firm has a market cap of $230.86 billion, a price-to-earnings ratio of 22.07, a PEG ratio of 2.52 and a beta of 0.73. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The firm has a fifty day moving average price of $273.02 and a 200-day moving average price of $284.48.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.33 by $0.19. The business had revenue of $19.69 billion for the quarter, compared to analysts’ expectations of $19.23 billion. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The company’s quarterly revenue was up 12.2% on a year-over-year basis. During the same period last year, the company earned $3.92 earnings per share. As a group, sell-side analysts forecast that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th were issued a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.7%. The ex-dividend date was Tuesday, February 10th. International Business Machines’s dividend payout ratio is currently 60.27%.

About International Business Machines

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.