International Business Machines (NYSE:IBM) Downgraded by Wall Street Zen to "Sell"

Key Points

• Wall Street Zen downgraded IBM from “hold” to “sell,” although broader analyst sentiment remains positive, with 16 Buy ratings, 11 Holds and a consensus “Moderate Buy” rating.
• IBM shares opened at $243.14, with a market capitalization of approximately $229 billion and a consensus analyst price target of $265.90. The stock trades below its 52-week high of $332.46.
• IBM’s latest quarterly results matched earnings expectations at $2.93 per share, but revenue of $17.16 billion fell short of the $17.46 billion consensus estimate. A senior vice president also sold 25,000 shares, reducing his position by 34.34%.

International Business Machines (NYSE:IBM - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also recently commented on the stock. Roth Capital reaffirmed a "buy" rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Oppenheimer lowered International Business Machines from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 15th. The Goldman Sachs Group set a $270.00 price objective on International Business Machines in a research note on Thursday, July 23rd. Susquehanna increased their target price on International Business Machines from $225.00 to $235.00 and gave the stock a "neutral" rating in a report on Monday, August 31st. Finally, Citigroup dropped their price target on International Business Machines from $255.00 to $245.00 and set a "buy" rating on the stock in a research report on Friday, July 24th. Sixteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $265.90.

International Business Machines Stock Performance

Shares of IBM opened at $243.14 on Friday. The business's 50 day moving average is $236.88 and its two-hundred day moving average is $246.36. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The firm has a market cap of $229.07 billion, a price-to-earnings ratio of 21.57, a PEG ratio of 2.23 and a beta of 0.71. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts' consensus estimates of $2.93. The business had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business's quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter last year, the company earned $2.80 earnings per share. Analysts forecast that International Business Machines will post 12.33 EPS for the current fiscal year.

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On International Business Machines

Large investors have recently bought and sold shares of the stock. Orca Wealth Management LLC raised its holdings in International Business Machines by 3.7% during the fourth quarter. Orca Wealth Management LLC now owns 975 shares of the technology company's stock worth $285,000 after purchasing an additional 35 shares in the last quarter. Friday Financial boosted its stake in International Business Machines by 1.9% during the 2nd quarter. Friday Financial now owns 1,903 shares of the technology company's stock valued at $583,000 after purchasing an additional 35 shares in the last quarter. First Command Advisory Services Inc. increased its position in shares of International Business Machines by 1.1% during the 4th quarter. First Command Advisory Services Inc. now owns 3,459 shares of the technology company's stock valued at $1,025,000 after purchasing an additional 36 shares during the period. HFM Investment Advisors LLC increased its position in shares of International Business Machines by 2.2% during the 4th quarter. HFM Investment Advisors LLC now owns 1,684 shares of the technology company's stock valued at $499,000 after purchasing an additional 37 shares during the period. Finally, Argent Advisors Inc. raised its stake in shares of International Business Machines by 0.8% in the 4th quarter. Argent Advisors Inc. now owns 4,655 shares of the technology company's stock worth $1,379,000 after buying an additional 37 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Lunar AI partnership with NASA: IBM and NASA released the open-source Lunar Foundation Model, trained on decades of lunar observation data. The model reportedly outperformed widely used mapping methods by up to 23% in identifying features such as ice deposits, craters and volcanic formations. The announcement strengthens IBM’s profile in scientific AI, although near-term revenue is likely limited. IBM and NASA Release Open-Source AI Model to Support Lunar Exploration
• Positive Sentiment: Swiss quantum-computing hub: IBM and Lockheed Martin are establishing a quantum innovation hub at ETH Zurich through Switzerland’s defense-offset program. The Swiss National Supercomputing Centre is expected to host the country’s first IBM Quantum System Two, powered by IBM’s Nighthawk r2 processor and integrated with the Alps supercomputer. The arrangement could provide IBM with a government-supported, multi-year deployment while expanding access to researchers and businesses. Research will focus on quantum sensing, navigation and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Neutral Sentiment: Analyst coverage continues to frame IBM as a diversified way to gain exposure to enterprise AI, hybrid cloud and quantum computing. However, the announcements are primarily strategic and research-oriented, so their effect on revenue and earnings may take years to materialize.
• Negative Sentiment: IBM recently underperformed the broader market, while a shareholder-rights law firm announced an investigation tied to management’s prior preview of weak second-quarter 2026 results. The investigation is not an allegation of wrongdoing, but it adds headline and legal risk. IBM Shareholder Investigation

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.

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