International Business Machines (NYSE:IBM) Shares Down 1.8% After Analyst Downgrade

Key Points

• Shares fell about 1.8% after Stifel Nicolaus cut its price target from $340 to $290, with the stock trading as low as $233.76 on lighter-than-average volume.
• IBM beat Q1 estimates with EPS $4.52 (vs. $4.33) and revenue of $19.69B (up 12.2% YoY), while analysts' consensus remains a "Moderate Buy" with an average price target near $311.27.
• Insider buying has been recorded recently (1,484 shares worth ~$417k in the last 90 days) and large institutions like Vanguard and State Street increased stakes, with institutional ownership around 58.96%.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s stock price fell 1.8% on Thursday after Stifel Nicolaus lowered their price target on the stock from $340.00 to $290.00. Stifel Nicolaus currently has a buy rating on the stock. International Business Machines traded as low as $233.76 and last traded at $237.3120. 5,043,546 shares changed hands during trading, a decline of 12% from the average session volume of 5,714,453 shares. The stock had previously closed at $241.74.

A number of other equities research analysts have also recently commented on the stock. BMO Capital Markets cut their price target on shares of International Business Machines from $350.00 to $290.00 and set a "market perform" rating on the stock in a report on Thursday, March 19th. Oppenheimer set a $380.00 price objective on International Business Machines and gave the company an "outperform" rating in a research report on Thursday, January 29th. Royal Bank Of Canada set a $361.00 target price on International Business Machines in a research note on Thursday, January 29th. JPMorgan Chase & Co. decreased their price target on International Business Machines from $317.00 to $283.00 and set a "neutral" rating for the company in a research note on Wednesday, March 18th. Finally, Dbs Bank raised International Business Machines from a "hold" rating to a "moderate buy" rating in a report on Monday, January 19th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $311.27.

Insider Buying and Selling

In related news, Director David N. Farr bought 1,000 shares of the firm's stock in a transaction on Friday, January 30th. The stock was acquired at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the purchase, the director owned 9,258 shares in the company, valued at approximately $2,814,432. This represents a 12.11% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michael Miebach purchased 434 shares of the stock in a transaction dated Wednesday, February 25th. The shares were purchased at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the acquisition, the director directly owned 434 shares in the company, valued at approximately $101,265.22. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders acquired 1,484 shares of company stock valued at $417,157. 0.27% of the stock is currently owned by insiders.

International Business Machines News Summary

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

• Positive Sentiment: IBM’s push into AI hardware, dual‑architecture (Arm) systems, FedRAMP-authorized watsonx/GovCloud offerings and new partnerships reinforce its enterprise AI/government positioning — a strategic growth narrative investors care about. What International Business Machines (IBM)'s Arm AI Hardware and GovCloud Push Means For Shareholders
• Positive Sentiment: Insider buying has been recorded in the past six months, and Quiver data highlights >$1.08B in award payments (notable government contracts), which support revenue visibility in the near term. These are constructive signals for long-term holders. $IBM stock is down 3% today. Here's what we see in our data.
• Neutral Sentiment: IBM set its Q1 2026 results call for April 22 — an upcoming event that could trigger bigger moves based on growth, margins and guidance. Investors may be reducing exposure ahead of the print. IBM to Announce First-Quarter 2026 Financial Results
• Neutral Sentiment: Recent market commentary (Zacks) notes IBM lagging while broader markets improved — a reminder of short‑term market dynamics that can pressure large-cap tech names even absent company-specific bad news. IBM (IBM) Stock Declines While Market Improves: Some Information for Investors
• Negative Sentiment: Analysts have trimmed price targets (e.g., Stifel cut its target to $290 citing currency and conflict headwinds), increasing near-term selling pressure and raising investor caution on forward guidance and macro sensitivity. Stifel Resets IBM Stock Price Target Ahead of Earnings
• Negative Sentiment: Institutional flows are mixed but notable — Quiver flags a very large Q4 sale by UBS (roughly 19.8M shares removed). Large portfolio reductions by big managers can weigh on the stock price and market sentiment. $IBM stock is down 3% today. Here's what we see in our data.

Hedge Funds Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of International Business Machines by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock worth $28,796,390,000 after acquiring an additional 1,439,824 shares during the last quarter. State Street Corp raised its holdings 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 purchasing an additional 518,321 shares during the period. Geode Capital Management LLC lifted its position in International Business Machines by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock valued at $6,679,105,000 after purchasing an additional 336,069 shares in the last quarter. Capital World Investors grew its holdings in International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock valued at $6,523,720,000 after purchasing an additional 4,976,756 shares during the period. Finally, Norges Bank bought a new stake in International Business Machines during the fourth quarter valued at about $2,446,429,000. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines Stock Performance

The business has a 50-day simple moving average of $257.17 and a 200 day simple moving average of $283.63. The company has a debt-to-equity ratio of 1.67, a current ratio of 0.96 and a quick ratio of 0.92. The firm has a market cap of $222.61 billion, a PE ratio of 21.28, a PEG ratio of 2.47 and a beta of 0.69.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.33 by $0.19. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The company had revenue of $19.69 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same period in the previous year, the company posted $3.92 EPS. The firm's revenue was up 12.2% on a year-over-year basis. Equities research analysts forecast that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 10th were paid a $1.68 dividend. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.8%. International Business Machines's dividend payout ratio is 60.27%.

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.

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