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

Key Points

• Wall Street Zen downgraded IBM from “hold” to “sell,” adding to growing caution around the stock even though the broader analyst consensus still sits at Moderate Buy.
• IBM shares fell 3.0% to $212.54, near the lower end of its 52-week range, after the downgrade and recent weakness in sentiment.
• The company’s last quarterly results were solid, with EPS of $1.91 and revenue of $15.92 billion both beating estimates, but investors are now focused on whether IBM can sustain its AI and cloud momentum.

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

A number of other brokerages have also recently commented on IBM. Jefferies Financial Group assumed coverage on shares of International Business Machines in a research note on Tuesday, June 23rd. They set a "buy" rating on the stock. KeyCorp lowered shares of International Business Machines to a "sector weight" rating in a research note on Tuesday, June 23rd. Stifel Nicolaus set a $290.00 target price on shares of International Business Machines in a report on Friday, May 22nd. Needham & Company LLC started coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a "buy" rating on the stock. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating on shares of International Business Machines in a report on Tuesday, June 23rd. Fifteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, International Business Machines presently has an average rating of "Moderate Buy" and a consensus target price of $292.89.

International Business Machines Trading Down 3.0%

Shares of IBM opened at $212.54 on Friday. International Business Machines has a fifty-two week low of $204.44 and a fifty-two week high of $332.46. The business has a 50-day moving average of $263.84 and a 200 day moving average of $263.58. The firm has a market cap of $199.76 billion, a P/E ratio of 18.79, a price-to-earnings-growth ratio of 2.13 and a beta of 0.68. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company's revenue was up 9.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.60 earnings per share. As a group, research analysts forecast that International Business Machines will post 12.33 EPS for the current year.

Institutional Trading of International Business Machines

Several institutional investors and hedge funds have recently bought and sold shares of IBM. Vanguard Group Inc. boosted its stake in International Business Machines by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock valued at $28,796,390,000 after buying an additional 1,439,824 shares during the period. State Street Corp increased its stake in International Business Machines by 1.0% in the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock worth $16,290,452,000 after acquiring an additional 518,321 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of 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 valued at $6,679,105,000 after acquiring an additional 336,069 shares in the last quarter. Capital World Investors raised its holdings in shares of 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 valued at $6,523,720,000 after acquiring an additional 4,976,756 shares in the last quarter. Finally, Bank of America Corp DE boosted its position in shares of International Business Machines by 7.0% during 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 acquiring an additional 1,049,602 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM launched new Power server products aimed at automation, app modernization, and local AI inferencing, which could support its enterprise AI push over time.
• Positive Sentiment: JPMorgan kept an overweight rating on IBM even after cutting its price target to $250, indicating Wall Street still sees upside from current levels.
• Positive Sentiment: Some analysts say the stock’s sharp decline may have pushed it into oversold territory, which could attract bargain hunters if sentiment stabilizes.
• Neutral Sentiment: IBM heads into its July 22 earnings report with investors focused on whether the company can validate its AI and cloud momentum after the warning.
• Neutral Sentiment: Analysts at Zacks and others are debating whether the selloff is an opportunity or a sign to wait, reflecting uncertainty rather than a clear fundamental shift.
• Negative Sentiment: IBM’s preliminary Q2 miss and weak near-term outlook are the main reasons the stock is falling, as they suggest slower growth and margin pressure.
• Negative Sentiment: Multiple law firms have announced securities-fraud investigations after the plunge, which can keep negative headlines around the stock.
• Negative Sentiment: Analyst sentiment is turning more cautious, with some estimate reductions and technical warnings reinforcing bearish momentum.

International Business Machines Company Profile

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.

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