International Business Machines (NYSE:IBM) Shares Down 1.6% - Here's What Happened

Key Points

• IBM shares fell by 1.6% on Wednesday, closing at $289.31 after hitting a low of $286.47, with trading volume up by 11% compared to average daily volume.
• Analysts have raised their target prices for IBM, with BMO Capital Markets increasing it from $260 to $300 and Royal Bank of Canada from $285 to $315, while the overall consensus rating remains a "Hold" with a target price of $284.62.
• IBM recently declared a quarterly dividend of $1.68 per share, resulting in an annualized yield of 2.3%, despite a payout ratio of 109.09%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) was down 1.6% on Wednesday . The company traded as low as $286.47 and last traded at $289.31. Approximately 5,281,535 shares traded hands during trading, an increase of 11% from the average daily volume of 4,748,578 shares. The stock had previously closed at $293.87.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on IBM shares. BMO Capital Markets lifted their target price on shares of International Business Machines from $260.00 to $300.00 and gave the company a "market perform" rating in a research note on Friday, July 18th. Royal Bank Of Canada boosted their price objective on shares of International Business Machines from $285.00 to $315.00 and gave the stock an "outperform" rating in a research report on Thursday, July 17th. UBS Group boosted their price objective on shares of International Business Machines from $195.00 to $200.00 and gave the stock a "sell" rating in a research report on Thursday, July 24th. Weiss Ratings reiterated a "hold (c+)" rating on shares of International Business Machines in a research report on Wednesday. Finally, JPMorgan Chase & Co. upped their target price on shares of International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $284.62.

International Business Machines Stock Performance

The stock has a market capitalization of $268.88 billion, a price-to-earnings ratio of 46.97, a price-to-earnings-growth ratio of 4.46 and a beta of 0.73. The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 2.00. The stock's 50 day moving average is $256.34 and its two-hundred day moving average is $259.93.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, topping analysts' consensus estimates of $2.65 by $0.15. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The firm had revenue of $16.98 billion during the quarter, compared to analyst estimates of $16.58 billion. During the same period in the prior year, the business earned $2.43 EPS. The company's revenue for the quarter was up 7.7% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. Analysts expect that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $6.72 annualized dividend and a yield of 2.3%. International Business Machines's payout ratio is 109.09%.

Institutional Investors Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently modified their holdings of IBM. Norges Bank bought a new stake in shares of International Business Machines in the 2nd quarter valued at about $2,011,122,000. GQG Partners LLC bought a new position in International Business Machines in the 1st quarter valued at about $1,040,057,000. Nuveen LLC bought a new position in International Business Machines in the 1st quarter valued at about $960,386,000. Vanguard Group Inc. raised its holdings in International Business Machines by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company's stock valued at $28,019,274,000 after acquiring an additional 1,913,708 shares during the period. Finally, Laurel Wealth Advisors LLC raised its holdings in International Business Machines by 27,928.2% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company's stock valued at $561,001,000 after acquiring an additional 1,896,326 shares during the period. 58.96% of the stock is owned by institutional investors.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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