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

Key Points

• IBM shares declined by 1.6% on Wednesday, trading at $267.77, a notable decrease from the previous close of $272.24, with a trading volume down by 33% from the average.
• Analysts have set varied price targets, with Goldman Sachs raising their target to $310.00 and others maintaining a consensus average price target of $275.00, reflecting mixed market sentiments.
• The company recently declared a quarterly dividend of $1.68 per share, resulting in a dividend yield of 2.5%, despite a payout ratio exceeding 100%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares dropped 1.6% on Wednesday . The stock traded as low as $267.30 and last traded at $267.77. Approximately 3,155,182 shares traded hands during trading, a decline of 33% from the average daily volume of 4,684,022 shares. The stock had previously closed at $272.24.

Analysts Set New Price Targets

Several equities research analysts have commented on IBM shares. Erste Group Bank downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Thursday, August 14th. Sanford C. Bernstein started coverage on shares of International Business Machines in a report on Monday, September 15th. They set a "market perform" rating and a $280.00 price objective on the stock. The Goldman Sachs Group upped their price objective on shares of International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a report on Wednesday, July 2nd. BMO Capital Markets upped their price objective on shares of International Business Machines from $260.00 to $300.00 and gave the company a "market perform" rating in a report on Friday, July 18th. Finally, UBS Group upped their price objective on shares of International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a report on Thursday, July 24th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, International Business Machines has an average rating of "Hold" and an average price target of $275.00.

International Business Machines Price Performance

The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00. The business's 50-day simple moving average is $254.38 and its 200 day simple moving average is $257.48. The firm has a market capitalization of $248.87 billion, a P/E ratio of 43.47, a PEG ratio of 4.18 and a beta of 0.71.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $16.58 billion. During the same quarter last year, the business earned $2.43 earnings per share. The business's revenue was up 7.7% on a year-over-year basis. International Business Machines has set its FY 2025 guidance at EPS. Sell-side analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Friday, August 8th were given a $1.68 dividend. This represents a $6.72 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Friday, August 8th. International Business Machines's payout ratio is currently 109.09%.

Hedge Funds Weigh In On International Business Machines

Large investors have recently modified their holdings of the stock. Family CFO Inc purchased a new position in shares of International Business Machines in the 2nd quarter worth about $25,000. Christopher J. Hasenberg Inc bought a new stake in International Business Machines in the 1st quarter worth about $27,000. Winnow Wealth LLC bought a new stake in International Business Machines in the 2nd quarter worth about $27,000. SSA Swiss Advisors AG bought a new stake in International Business Machines in the 1st quarter worth about $28,000. Finally, Dagco Inc. bought a new stake in International Business Machines in the 1st quarter worth about $31,000. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines Company Profile

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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