International Business Machines (NYSE:IBM) Shares Down 2.5% – Time to Sell?

International Business Machines Corporation (NYSE:IBM) shares were down 2.5% during trading on Monday . The stock traded as low as $227.40 and last traded at $228.53. 6,839,236 shares traded hands during trading, a decline of 15% from the average session volume of 8,092,105 shares. The stock had previously closed at $234.32.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Maximo gains credibility with enterprise customers. New Verdantix research commissioned by Cohesive found that IBM Maximo users demonstrate higher maintenance maturity than industry peers, supporting demand for IBM’s asset-management and industrial software offerings. New Verdantix Research Finds IBM Maximo Users Demonstrate Higher Maintenance Maturity Than Industry Peers
• Positive Sentiment: Government and distribution expansion broaden IBM’s software opportunity. Maximo Government SaaS received FedRAMP Moderate authorization, potentially making it easier for U.S. agencies to adopt the platform. Separately, Arrow Electronics expanded its IBM distribution agreement to seven additional European countries. IBM Secures FedRAMP Moderate Authorization For Maximo Government SaaS Arrow Electronics adds seven countries to distribution coverage with IBM
• Positive Sentiment: AI remains a potential growth driver. Coverage highlights IBM’s positioning in the enterprise AI race, while industry research forecasts rapid expansion in agentic AI spending. IBM’s software and consulting exposure could benefit if companies increase spending on AI automation and workflow tools. IBM Makes Surprise Move in Nvidia AI Race
• Neutral Sentiment: Investor positioning is mixed. Quiver data showed more institutions added IBM shares than reduced positions in the latest quarter, and two company insiders made purchases. Analysts’ reported median price target of $310 is well above the recent trading range, although these signals are not guarantees of future performance.
• Negative Sentiment: Mainframe weakness is weighing on sentiment. Recent analysis points to a poor IBM Z/mainframe quarter, with investors concerned that product-cycle headwinds could offset software gains. The company’s latest reported revenue also came in below consensus despite earnings meeting expectations. IBM: Big Blue Sees Red Hat; Mainframe Headwinds, Software Tailwinds
• Negative Sentiment: A securities-fraud investigation adds risk. Bleichmar Fonti & Auld announced an investigation related to the IBM Z slowdown and the stock’s prior decline. The announcement is an allegation and does not establish wrongdoing, but it adds uncertainty and may pressure the shares. IBM Securities Fraud Investigation Initiated After IBM Z Product Slowdown and 25% Stock Drop

Analysts Set New Price Targets

Several research analysts recently weighed in on IBM shares. Sanford C. Bernstein restated a “market perform” rating on shares of International Business Machines in a research report on Thursday, July 16th. Bank of America lifted their target price on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Robert W. Baird began coverage on International Business Machines in a research report on Tuesday, July 21st. They set a “neutral” rating and a $230.00 target price for the company. Wedbush set a $350.00 price target on International Business Machines in a research note on Tuesday, June 2nd. Finally, Roth Capital reiterated a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Fifteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Trading Up 1.7%

The business’s 50 day simple moving average is $249.44 and its 200-day simple moving average is $252.00. The stock has a market capitalization of $219.27 billion, a P/E ratio of 20.65, a PEG ratio of 2.30 and a beta of 0.70. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74.

International Business Machines (NYSE:IBM) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the prior year, the business posted $2.80 EPS. The firm’s quarterly revenue was up 1.1% on a year-over-year basis. As a group, analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 2.9%. International Business Machines’s dividend payout ratio is presently 59.98%.

Hedge Funds Weigh In On International Business Machines

Several institutional investors have recently modified their holdings of the stock. VIRGINIA RETIREMENT SYSTEMS ET Al grew its stake in shares of International Business Machines by 424.6% during the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock valued at $77,234,000 after buying an additional 211,040 shares during the last quarter. Assetmark Inc. lifted its stake in shares of International Business Machines by 24.8% in the 1st quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock valued at $15,624,000 after acquiring an additional 12,791 shares during the last quarter. GLOBALT Investments LLC GA boosted its holdings in International Business Machines by 19.1% during the 4th quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after acquiring an additional 2,930 shares during the period. Rice Partnership LLC purchased a new stake in International Business Machines during the 4th quarter valued at about $3,317,000. Finally, Sage Investment Advisers LLC bought a new position in International Business Machines during the 4th quarter worth approximately $4,101,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

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.